Monday morning at 6am I got a call from a man who has been a client and a supplier. He wanted me to tow his truck, loaded down with tools and rodeo gear to a temporary residence. I did the task and then got an update from him at breakfast.
He had been away for a year at his parents' farm in Iowa. He had been coming back and around Kearney Nebraska he blew a head gasket. The tow charge to Cheyenne would have been $1100. With a network of friends along the way he was able to get the vehicle to Laramie County Wyoming. He had located a place to live and then I made the last link by towing the truck to that location.
I will protect his privacy and at the same time do a generalization to what is needed in the United States right now. This man has no bank account and no credit card. He has no phone. He drives older vehicles to avoid the high registration fees and insurance. His truck is a 1984 model. He is invisible except to his customers.
While this man is trying to make it, the Federal government has a small business advancement plan. It will buy stock in community banks. It is reducing payroll taxes for new hires. It is changing loan limits for SBA loans. The President has announced a new plan to promote community college education.
All of these plans work on the supply side and assume that there are plenty of job openings. It assumes that reducing payroll taxes will increase hiring. Only an increase in demand will increase hiring.
There are plenty of people who are unemployed and who are either not eligible for unemployment compensation or have exhausted their benefits. Even while collecting unemployment they have been restricted to developing income with self-employment.
The man who needed a tow knows how to get business. He has a niche and a product. He is having to operate underground because of excessive paperwork and costs. There is a process that would help him.
1. A simple start-up education plan that would include help setting up for incorporation, bank account, on-line bookkeeping, payroll taxes, workers' comp, unemployment and sales tax if relevant.
2. A loan program that works like a factor. He could have advances that would be paid off with customer payments.
3. He could submit payroll data and reports would be completed for him and the employer share would be paid for a period of time.
4. Reports would be sent to him and advice could be given in how to improve.
Each new government assistance program seems to be for the benefit of government workers and banks.
He had been away for a year at his parents' farm in Iowa. He had been coming back and around Kearney Nebraska he blew a head gasket. The tow charge to Cheyenne would have been $1100. With a network of friends along the way he was able to get the vehicle to Laramie County Wyoming. He had located a place to live and then I made the last link by towing the truck to that location.
I will protect his privacy and at the same time do a generalization to what is needed in the United States right now. This man has no bank account and no credit card. He has no phone. He drives older vehicles to avoid the high registration fees and insurance. His truck is a 1984 model. He is invisible except to his customers.
While this man is trying to make it, the Federal government has a small business advancement plan. It will buy stock in community banks. It is reducing payroll taxes for new hires. It is changing loan limits for SBA loans. The President has announced a new plan to promote community college education.
All of these plans work on the supply side and assume that there are plenty of job openings. It assumes that reducing payroll taxes will increase hiring. Only an increase in demand will increase hiring.
There are plenty of people who are unemployed and who are either not eligible for unemployment compensation or have exhausted their benefits. Even while collecting unemployment they have been restricted to developing income with self-employment.
The man who needed a tow knows how to get business. He has a niche and a product. He is having to operate underground because of excessive paperwork and costs. There is a process that would help him.
1. A simple start-up education plan that would include help setting up for incorporation, bank account, on-line bookkeeping, payroll taxes, workers' comp, unemployment and sales tax if relevant.
2. A loan program that works like a factor. He could have advances that would be paid off with customer payments.
3. He could submit payroll data and reports would be completed for him and the employer share would be paid for a period of time.
4. Reports would be sent to him and advice could be given in how to improve.
Each new government assistance program seems to be for the benefit of government workers and banks.
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