Saturday, December 1, 2012

Flawed

Greetings good citizen,

Once again I belabor the obvious when I point out how deeply ‘flawed’ our current system of commerce is…and before you make any wise cracks I DO have a ‘better way’, it just won’t work too well for people who need to exploit other people for their living!

Worse, our ‘broken’ social model is about to get worse as capitalists wrestle with ‘mandated health insurance’ (Instead of ‘single payer’ which would wipe the health insurance industry out.)

But no! For some unfathomable reason, Mr. Obama thought we all WANTED ‘RomneyCare’ and derailed any debate over ‘socialized’ healthcare.

Now the rubber is meeting the road and look at how those stalwarts of ‘The American Way’ are dealing with it…
Like many franchisees, Robert U. Mayfield, who owns five Dairy Queens in and around Austin, Tex., is always eager to expand and — no surprise — has had his eyes on opening a sixth DQ. But he said concerns about the new federal health care law had persuaded him to hold off.

Bob Bellagamba, who runs Concorde Limousine in Freehold, N.J., says there is too much uncertainty about the new law.

“I’m scared to death of it,” he said. “I’m one of the ones sitting on the sidelines to see what’s really going to happen.”

Mr. Mayfield, who has 99 employees, said he was worried he would face penalties of $40,000 or more because he did not offer health insurance to many of his full-time workers — generally defined as those working an average of 30 hours a week or more. Ever since the law was enacted in 2010, opponents have argued that employers who were forced to offer health insurance would lay off workers or shift more people to part-time status to compensate for the additional cost. Those claims have drawn considerable attention — and considerable anger in response — in recent weeks.

John H. Schnatter, the chief executive of Papa John’s, the pizza chain, said some franchisees were likely to reduce their employees’ hours to avoid having to provide coverage. And an unhappy Denny’s franchise owner in Florida warned that he would raise prices 5 percent as a “surcharge,” adding that disgruntled customers could offset that by reducing their tips.

Two things jump out at you from this excerpt.

The first is how slender the profit margins are in much of the economy (especially in ‘hospitality’)

The second doesn’t really slap you in the face BUT our new ‘Service Economy’ is pretty much based on PART-TIME EMPLOYMENT!

No lie good citizen, 50% of the US workforce is ‘part-time, no benefits.’

So what is Mr. Employer going to do?

Which is really irrelevant because as I keep reminding you, IF YOU CAN’T LIVE ON WHAT YOUR EMPLOYER PAYS YOU ITS NOT THEIR PROBLEM, IT’S YOURS!

This, good citizen, is where ‘cascading systemic failure’ begins, with customers who can’t afford the goods.

No /(too few) customers and you can’t hand out pay increases so your people have to ‘cut back.’

Try to beef up your bottom line by raising prices and you start dropping customers…the same thing happens when you reduce the services provided/quantity vended, people start hunting for better value.

Remember this is all because if you can’t make a profit you can’t pay your creditors (and THEY will put you out of business, if only to staunch the bleeding…)

So how do these operations stay in business?

Short answer, THEY DON’T!

In a sight that should amaze everyone, you pass by strip mall that is wholly owned by those bastards at the mighty ‘For Lease’ corporation and some idiot is erecting a new one right next to it!

What (except the prospect of selling these ‘commercial condo’s’ to (beyond stupid) ‘entrepreneurs’) possesses these builders to behave so irrationally?

Well, dum-dum has to pay for his excavator somehow…how fucking sad is that?

But this is precisely the environment our debt-driven social model creates…one that squanders endless resources needlessly! (Worse, they are NOT endless, as we are rapidly finding out.)

Well, it’s December first, only twenty more days until 12/21/12…

Of course many of you thought it would be game over a dozen years ago when the glitch of computers being unable to detect the new millennium would shut Western civilization down; taking the world as we know it with them.

Well, we’re still here…I haven’t detected anything ‘unusual’ in the night sky nor have I witnessed any increased seismic or meteorological activity so forgive me for being doubtful of catastrophe striking three weeks from today.

Even the biblical ‘apocalypse’ will be preceeded by some pretty tough to miss ‘signs’.

Not that I have any truck with spirit in the sky (who is the ‘primary justification’ for allowing the One Percent to exist.)

Funny how one thing leads to another, thanks for letting me inside your head,

Gegner


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