Business Owners Speak on Struggles with ObamaCare, Regulations
#8 Businessman – Yes, you are describing part of the situation (replacing rapidly increasing labor costs with equipment). But if I understood you right, you are doing it to stay ahead of your competition. If your company was smart, it would do the same if the economy was booming.
Mr. Richardson’s article is correct in that so much of what Washington is doing (and has done) is raising the costs of almost *everything*. Higher costs means higher prices means lower overall consumption.
The following is related, something I just posted at VDH’s site:
Consumer spending is approximately 70% of our economy (plus more indirectly). If there was a demand for an extra million widgets per year, widget makers would fill that demand. Even if it required hiring or purchasing new equipment.
But consumers are just as battered and wary of Washington, DC as business executives and owners are.
A look at reasons for consumer’s, the general public’s, situation and pessimism might be a good companion piece to this article.
For what it’s worth, I spent 30 years in management consulting, mostly “turnaround” projects.
