Sunday, December 12, 2010

The Slump Will Continue

As a co-founder to the Viral Voice organization TheViralPublicity.com I have interviewed over 100 small business owners or managers. What is the consensus about the economy, slow growth while Obama remains in Office. An overwhelming majority of our guest at TheViralPublicity.com Small Business Mixers say that It's going to be difficult to hire people when the people are not buying the products or services that they should to increase business so that they can hire more people.

This is a vicious "Catch-22". Economy can't grow unless more products/services are bought. People aren't buying the products/services because they don't have jobs to support the spending; the jobs aren't there because small business doesn't have the sales to support hiring someone new.

And where are those jobs most likely to come from? Manufacturing. But are there going to be enough new manufacturing companies to support hiring 250,000 jobs for the next 2 years to get us out of this recession. NO!

Every American worker wants to be making $20, $30 or $40 per hour. Thats great. So lets say they're making coffee pots. Are you going to want to spend $300 on a coffee pot because it made in America by a Unions Worker? NO! You're going to buy one thats $60 and Made in China because thats what your budget allows and it probably made better. You do have a budget...right?

America won't get out of this slump ever unless a few economic policies are changed. What's one of hundreds that I can think of.
1. the US should tax imports like they tax American inheritance, at 55% in 2011. Think about the tax revenue that would generate.

We have a great country but just not smart people running it.

That's my opinion and I'm sticking to it.