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If rent collection at the very top, above the landlord, above the management company, if they have to take the hit from this the most, there will be many less r
by drawkbox 7y ago
If rent collection at the very top, above the landlord, above the management company, if they have to take the hit from this the most, there will be many less recessions.
If the bank, credit cards and mortgage owners have payments suspended in recessions, there would be many less recessions.
If the top of the chain, that is the elusive 'trickle down' source, felt the pain for recessions the most, there would be many less recessions.
If 'too big to fail' banks and companies were immediately broken up on commencement of recessions, there would be many less recessions.
Markets are efficient, they will hit targets, market regulations can be used to set targets that will keep the whole thing on the rails, remove the rails and the usual happens, more inequality and stagnation.
We have to put the incentives in the right place. If the lower/middle always feel the pain with no consequence for the top or 'too big to fail' companies, then it will be a regular, repeating occurrence. That will create markets where companies get big enough to be 'too big to fail' and get bailouts, or essentially grow to 'bailout big'.
No matter what you believe about economies, or markets, money only goes where other money is, and you can't keep taking from the spenders in a consumer economy. The constant rent-seeking, predatory, value extraction, wealth destroying events are going to break the lower/middle and public markets. Individuals, families and small business especially need support during these times, the longs that all value extractors extract from and the engine of America as well as the research and development labs of larger companies.
Markets are garden, the in trouble lower/middle should be brought up and focused on, the massively growing top should be scaled back or harvested.
Money trickles up and down and all around, but money only trickles where other money is found.
America is mostly small businesses.
SBA/Chamber of Commerce has 30.2 million for companies under 500 people.
Lots are sole proprietors or very small < 5 people. 22 million of the small businesses in the United States are individually operated, meaning that they have no other employees other than the owner.
99.9% of businesses in the United States are small businesses, owing to the rather large threshold of 500 employees, or fewer.
Small business is the engine of America.
Small businesses comprise what share of the U.S. economy?
Small businesses make up [1][2]:
- 99.7 percent of U.S. employer firms,
- 64 percent of net new private-sector jobs,
- 49.2 percent of private-sector employment,
- 42.9 percent of private-sector payroll,
- 46 percent of private-sector output,
- 43 percent of high-tech employment,
- 98 percent of firms exporting goods,
- 33 percent of exporting value.
It is time to help the lower/middle and sole-proprietors and small business or America as we know it is much much different after this.
About 8 trillion in 'stimulus', at a cost of 20k to every citizen, for that we got $1200 we haven't got yet and small businesses finding out how small of fish they a really are.
This market is broken for lower/middle and people or small business. It is gangbusters for wealth and value extraction ops.
The stimulus for individuals, families and small business is vaporware, time for some vaporwave as we fade away into the ether.
Good luck wealth and big business with no one to skim from and no small business to use as research and development or suppliers.
[1] https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf
[2] Source: U.S. Census Bureau, SUSB, CPS; International Trade Administration; Bureau of Labor Statistics, BED; Advocacy-funded research, Small Business GDP: Update 2002- 2010, www.sba.gov/advocacy/7540/42371.
- gruez 7y ago>If 'too big to fail' banks and companies were immediately broken up on commencement of recessions, there would be many less recessions. I'm curious what the justification for this is. It seems like the kneejerk reaction toward any big/powerful entity (eg. "break up the tech companies!").
- drawkbox 7y ago> I'm curious what the justification for this is. It seems like the kneejerk reaction toward any big/powerful entity (eg. "break up the tech companies!"). Well we do need more Teddy Roosevelts that threaten anti-trust. FDR was also from wealth and took on wealth in a way that made the most secure and trusted investable market for investors and workers ever and has lasted almost a century [1]. Microsoft, even the threat of one in the 90s led to Google, Apple, Amazon, Mozilla, etc to rise. Microsoft is also better for it. However I don't think any company should be broken up until they start to abuse a monopoly or become a single point of failure for economic disasters or national security issue. For instance right now banks and ISPs need to be broken up. Clearly 'too big to fail' banks are a national security issue and lend to massive value extraction events and recessions as they gain. Also, the local monopolies of ISPs have led to rent-seeking and less innovation. Competition is a key of capitalism and fair markets. If you do not have competition you have stagnation and monopolies make progression and innovation lazy. Here's a great quick point by Steve Jobs about product stagnation and the managers/business side [2] and how they can run amok if not controlled to allow value creation to continue, and how monopolies or problems that arise when only the business/managers are in charge. Essentially when monopolies/oligopolies happen they stagnate and the product/engineer/creates lose power to the business/management side, value creation is killed for value extraction and stagnation happens always, it is basically a law of the universe at this point. The alternative is to keep sticking it to the bottom, the lower/middle and the worker in consumer economies, the service in a service economy, the small business R&D absorbing failures and proving successes for large businesses, the long investors that are 'suckers' to investment banks, and the overall quality of life we all enjoy. Or you can take some from the top and incentivize them helping to make sure recessions are rare. [1] https://rooseveltinstitute.org/how-fdr-took-forces-wealth-and-power/ https://rooseveltinstitute.org/how-fdr-took-forces-wealth-an... [2] https://www.youtube.com/watch?v=GXO3xMfuo20 https://www.youtube.com/watch?v=GXO3xMfuo20