http://voices.yahoo.com/could-overregulation-reason-7996982.html?cat=31
Could Over-Regulation Be the Reason Job's Are Continuing to Disappear?
The cost of living these days, is outrageous, especially for the unemployed the underemployed and the unemployable.
Yes, some are unemployable, due to physical limitations, or severe altered mental status. However we are not going to discuss the unemployable at the moment, as that is a topic for another day.
What we are going to discuss however, is the price of gas, and your employment or lack of employment.
Employment opportunities are greatly decreased whenever the prices of gasoline are increased, in rural areas especially. The reason being is this cost of getting to and from any particular destination is increased substantially.
With the increased cost related to travel expenses, those who may have been willing to accept low wages are no longer able to do so. The reason for this is because the lower wage that was acceptable will no longer meet the basic needs of the family.
When it cost more to get to your place of employment than you are bringing home on your personal paycheck, it is by default unprofitable for you to continue with that job. It is also unprofitable for you to look for another place of employment that may pay a similar wage.
Now, let's look at this from the employer's perspective. Granted the employer will have more resources, as a general rule, than the hourly hireling. However, when the employer's cost to produce a product is increased past a certain threshold, and then the employer has to make cutbacks.
These cutbacks may come in the form of decreased working hours for the employee, a decrease in products produced, which in time will lead to less work for the individual employee.
The employer may be sympathetic towards the needs of the employees; however, the employer only produces so much income. Out of this income the employer must pay for the cost of doing business.
This includes insurance payments, materials, and various supplies for doing business. Advertising the business, the employee wages, and upkeep of the area where the manufacturing takes place. In addition to the employers' personal living expenses, this will be mostly the same as the employee's. I.e.; - Housing, medical, food, utilities, and so forth, and so on'"
When the cost of transporting supplies into a company are increased or when the price of shipping is increased due to increasing gasoline prices, then everyone loses.
The reason everyone loses is because the employer's has to increase prices in order to cover the costs of doing business. The employer can do this in a few different ways, one is cutting back on products, if this product is popular, then this will also increase the price for the consumer.
The employer may also cut an employee's hours. Finally after decreasing the cost of doing business as much as possible, the employer will either go out of business if he cannot make a profit, or he will relocate.
Relocation within the United States, is not really so bad, because the jobs stay within the United States, however, when the regulations, zoning, and cost of doing business becomes a heavy financial burden on the business owner, the business owner will do one of two things. One is to close up shop.
With a company closes everyone loses, because this will take away jobs.
If a company chooses however to stay in business, they may decide to relocate to another country. The relocation to another country not only takes jobs away from America, it also takes money out of the American worker.
Taking away jobs out of the country may seem unjust and cruel, however it is partly due to the fact the American consumer is traditionally used to lower prices on everything. So if a company wishes to sell to the American consumer, the prices have to meet or match what the American consumer is willing to pay.
When a business is unable to meet or match the price a consumer will pay, then that business will go out of business if they do not find a more economical way to do business.
A rule of thumb in business is to buy low, and sell high, this is not to take advantage of the consumer, but to make a profit. It someone can only sell for the price that a product is purchased for, or even less than what the product was purchased for, pretty soon, the buyer is unable to buy.
Today, the cost of producing various products in America has gone up, not just because of the prices of gas, but because of the environmental rules, zoning, regulations and taxes.
As long as Americans agree to pay the majority of their income for taxes, and believe that every insect, rodent, plant or tree must be saved, American's will find the cost of living souring higher and higher.
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