MG1968
That’s No Moon…
- Joined
- Sep 17, 2006
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Why would I bring that money back to the US and give 1/3 to Uncle Sam?
Sure. Business exists to make money. They will continue to fight to make money no matter what rules or regulations are thrown in front of them. Does that make regulation good - not always. But I don't think something like increased health care costs is the deth knell in our economy.
Sure. Business exists to make money. They will continue to fight to make money no matter what rules or regulations are thrown in front of them. Does that make regulation good - not always. But I don't think something like increased health care costs is the deth knell in our economy.
increasing costs of employment will hurt employment
Take a look at the 1937-38 recession which was caused by increasing taxes and the adding of Social Security. Sounds familiar to whats happening now doesnt it?
Sure. Business exists to make money. They will continue to fight to make money no matter what rules or regulations are thrown in front of them. Does that make regulation good - not always. But I don't think something like increased health care costs is the deth knell in our economy.
Sure - but didn't business adapt and move on? Thrive even?
I've said it before and I'll say it again - I believe uncertainty is more painful that anything. I think business can cope with and handle certainty with cost increases easier than complete uncertainty which is rampant in this political environment.
businesses aren't just these generic entities that operate as money printers. Businesses are the riskiest investment in the world. The capital that makes them happen requires returns. What happens to the return hurdles in an inflationary environment?
We need investment capital to generate jobs, yet we're inducing inflation while also asking those making the investments to pay more taxes, further raising the bar. Good luck with that pitch to the investors.
Sure - but didn't business adapt and move on? Thrive even?
I've said it before and I'll say it again - I believe uncertainty is more painful that anything. I think business can cope with and handle certainty with cost increases easier than complete uncertainty which is rampant in this political environment.
existing businesses can, but you're forgetting that our Capitalistic market is steeped in the base capital that makes businesses go. We are setting all sorts of incremental hurdles to investing, which is exactly the opposite of what we need to generate jobs.
If that's the rationale, let's tax business at 100% and watch them thrive!
Also, Face Book just raised 16 Billion through an IPO. Could it be that invesors are just dumb?
I've contunued to invest in Wal-Mart and while it's far from sexy, I've made great returns over the last year.
No, it will discourage hiring for both. It's a small buisness killer.
Would you draw a distinction between large business and small business in this assessment? I can see it potentiall hurting small business more.
this suggests some sort of short term business cycle. That suggestion is wrong. The analogy is also a very tough fit. Some businesses evolve and some die. The replacement piece is the problem. Identifying new markets doesn't just happen. It damn sure doesn't happen without a truckload of capital investment.That would be dumb. But I do believe business evolves. As much as a micro organism in some cases. Add a stimuli (positive or negative) and the organism doesn't necessarily go extinct - it adapts and moves on. If it does go extinct - it is replaced by something else that thrives in it's place.
Investors are prone to market exuberance, especially when it comes to media darling IPOs. They're fortunate to have many agencies vetting investments for them prior to IPOs, or they'd get killed.
That's not who I'm talking about. I'm talking about investors in individual businesses - professional types. The guys who do due diligence on financials and business verticals and management quality and vendor capabilities and such. Those guys, along with debt providers who require coverage ratios and the like make our job market happen by betting on individual companies. They make the bets for returns. Those returns are risk adjusted for everyone in the investment stack. Inflation reduces income into the investee company while simultaneously necessitating larger returns for the investors. That's burning the candle at both ends and it's an enormous problem for the community investing in the small and midsize businesses that employ the majority of Americans.