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Old 05-22-2015, 10:37 AM
BlueStreak's Avatar
BlueStreak BlueStreak is offline
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Join Date: Oct 2009
Location: The Swamp
Posts: 27,407
I laugh when I hear "The small businessman is the engine of the economy."

No, he isn't.

The small businessman only exists because others in his community have the means to utilize his services/products. If the bulk of his neighbors simply struggle to survive due to weak wages, the small businessman suffers.

Example;

Some sort of valuable resource is found. A mining company comes to sink a mine and brings dozens of skilled miners with them. Initially, the mining company sets up temporary housing, but the desire for home ownership and other goods and services arises. If the workers are well paid, there will be more demand and more money to be spent at that level. Ancillary businesses will spring up to feed into this demand. Home construction, grocery stores, gas stations, etc., etc.......... More people, more business for the smaller businesses.

Now, take away the strong wages at the mine. Everything else suffers.

The economy slows, the town slowly dies.

You can talk about what "SHOULD" happen all you want. That's what "DOES" happen. Large scale employers, providing high paying jobs and high quality employment are what built this country over the last 100 years or so. (Industrial Revolution) The guy with a few lawnmowers on a trailer is barely feeding his own family and creates high value employment for no one. In fact, he is not "independent", he is deeply dependent on the rest of us.

America will not remain great, depending on small business and low wages. It simply does not work.

Dave
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Last edited by BlueStreak; 05-22-2015 at 10:40 AM.
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