Why small business isn't hiring

[ArlJim78]

Parts 1 and 2, I think this guy has his finger on the pulse and understands why things don't work anymore. Most of it relates to crony capitalism, interest rate manipulation, government/corporate "shadow cartels", local gov bodies using small businesses as a cash cow, etc.
One thing he doesn't mention is the escalation of the minimum wage which I believe is a very negative drag on small business as well.

Worth a read.


Why small business isn't hiring Part I (http://www.oftwominds.com/blogjuly11/why-smallbiz-not-hiring-6-11.html)

Why small business isn't hiring Part II (http://www.oftwominds.com/blogjuly11/smallbiz-not-hiringII-6-11.html)

[Robert Goren]

First you need to decide what is or is not a small business. The chamber of commerce calls a lot things small businesses that most people would not.
The main reason "Mom and Pop" business aren't hiring is that the demand for their products is not enough to warrant it. The reason why their customers aren't buying is they have no money. The low and middle class have seen their income stay basically the same since Reagan. They are the ones who do most of the buying. The rich have seen their income shoot up. They do most of the selling to and very little of the buying from the "Mom and Pop's". Some recession are supply recessions, but this one is a demand recession and it has been a long time coming. Until the buyer actually get more money to buy things it is going to hang around. There is no shortage of money for suppliers to expand if they had the demand to warrant it. Businesses can come with dozens of reasons not to expand, but bottom line that they will always expand if there is demand for their products and won't if their is not.

[HUSKER55]

IF government takes all the spendable money there is nothing left over. If we cut all of the nonsense out of the federal and state governments things would be a lot different.

[elysiantraveller]

A family member of mine owns a staffing company that currently has around 2,000 employees. They aren't hiring and expanding their fulltime staff because of HCR and the employer penalties attached to the bill.