We have been warned

The Way I See It

by DON WEST

I listened to the rhetoric in the President’s State of the Union message this week, but I am still looking for the “silver lining”, the improvement in my status from when he promised “hope and change” during his campaigning promises before being elected. Fact is, though he spoke of our putting our collective shoulders to the wheel of progress, many more of our citizens are collecting welfare, food stamps, and other government assistance than there were when he took office. Those people don’t have their shoulder to the wheel, but their butts in a chair and want longer unemployment benefits. Where’s the progress?

Having been one of those “small business owners” for the past 20-plus years, I paid particularly close attention to his suggestion that we raise the minimum wage from $7.25 an hour to $10.10 per hour. Well, let’s take a look at ABC Bookstore and see how that will affect them. ABC has 5 minimum wage employees, who work 40 hours a week. That means base payroll for the owner is just over $75, 000 a year. The suggested increase in hourly wages brings the owners base salary pay to over $105,000 annually. The figure does not include increased Social Security which he must match, worker’s compensation insurance which he must provide without any compensation from it, and increased unemployment contributions which he must pay and will never receive a single dime back for it. When the owner of ABC Bookstore lays off two of the employees to be able to cover increased costs for the remaining three, he becomes the bad guy, the greedy main street merchant pegged as the upper income people who need to give more to the middle class. Meanwhile, no one has looked to see that he is putting in many more hours to cover the workload that the two laid-off employees used to handle so that he can meet the obligations of a quarter-million dollar mortgage that the government so generously loaned to start up his small business. Meanwhile, he and his family have to do with less, but still need to pay for college, try to pay healthcare premiums for himself, his employees and their families.

Well, the outsider will look and say, “Wow, he grossed over a million dollars this past year and he owns all that fine real estate.” What the outsider doesn’t see is the owner of ABC refinancing his debt load, so he can lower his notes, but obligate himself and family for many more years to try and delay or prevent bankruptcy. Eventually many of the ABC Bookstores do just that, go bankrupt, and guess who foots the bill. Right, you and I do because they default on that government loan and we the taxpayers have to suck it up, just like the worthless stock from GM when they reorganized with a government loan, and all the unqualified homeowners who couldn’t pay for houses that they should have never bought.

The handwriting is on the wall and if you refuse to acknowledge the fact that the U.S. is spending itself into destruction, then after the fact, don’t say we were not warned.

Short URL: http://www.jenningsdailynews.net/?p=25078

Posted by on Jan 30 2014. Filed under Editorial Columns. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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