Helping Big Business and Marginalizing Small Competitors and Unskilled Labor

Have you ever noticed that those with “good” ideas to address economic problems like unemployment and “income inequality” usually involve some sort of government subsidy or “special” tax breaks to a select few. A case in point is our Governor’s Startup New York initiative that provides long term tax exemptions to a select few businesses that locate themselves in one of the areas designated as a startup zone. However, a tax exemption to a selected few means increased taxes to both you and the rest of the people and businesses in the state who are not among the “selected” few. Of course, the selected few will be encouraged to show their gratitude to the Governor in the future.

Income inequality is largely a result of a lack of employment opportunities directed toward the lower level of skills that the unemployed possess. While the recipients of these tax breaks may promise to create jobs at 80 to 100 at a time, these are not necessarily the jobs that are going to provide employment to the currently unemployed. For these people to once again become employed it is necessary to have an economic recovery that applies across the board, one that frees small business from the overregulation and fees that prevent them from growing or getting started. While small business may only create jobs a 5 to 10 jobs at a time, the cumulative effect is far greater. Good ideas do not need government support, good ideas sell themselves, good ideas attract private investments, or so they would if government overregulation didn’t create a layer of fixed costs that discourages the small business startups.

Forcing businesses to provide wages above the skills of their workers, health benefits, retirement and unemployment insurance as well as pay for time not worked, as well as overregulation, licensing fees, a tax free ride for a select few, all have the effect of marginalizing struggling business enterprises, unskilled job applicants and the entire community in which they live. Isn’t it enough that they provide the jobs.

While the corporate giants that can afford these additional mandates might fight them at the start, they are well aware that they can absorb these additional costs which their small competitors cannot.

One thought on “Helping Big Business and Marginalizing Small Competitors and Unskilled Labor

  1. mark foss

    Maybe we should petition coumo to set up snow making machines to create jobs for those in the removal business, just to show the folly of govt. job creation.

    Reply

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