A typical business model is often made illegal by the Left in many ways.  Let start with a business that has $2 Million in sales.  The Model is low overhead and high labor cost.  Think lawn care.  The business has expenses of $500,000 in office, equipment, vehicles and assorted other items. The owner takes a salary of $100,000.  
The Company Budget
The business pays 2 managers a total of $100,000.  The business pays $150,000 in taxes and $150,000 in benefits to the employees.  This leaves $1 Million for 100 part time employees averaging 20 hours a week.  The business models is looking for 16 and 17 year olds from the inner city.  The job’s pay is $7.25 to $10 an hour, with the average hourly ‘total’ cost to the company of $10 an hour.
Everyone Is Benefitting
This business puts about $170 a week in each of the pockets of these 100 teenagers and teaches them a skill in a trade and basic work skills.  The teenagers are benefiting! The customers are benefiting!  The 2 managers have a good job!  Governments are getting around $720,000 in ‘all’ taxes.  The owner/ company is serving his fellow citizen enough that they distribute $2 Million to him.    
Fell The BERN !
Bernie Sanders or any on the Left, gets elected and ‘Tries to help’ and make things equal.  First, he raises taxes on the business by $200,000 a year.  This takes the total payroll for labor from $1,000,000 to $800,000.  Labor was already very tight, meaning every hour of labor was very much needed to accomplish the jobs. 
Experiments in raising cost to the consumer led to a heavy loss of customers. Cutting wages for everyone back to $7.25 an hour resulted in losing the best employees. Cutting corners on the work quality resulted in unhappy customers and many refunds. Cutting non labor expenses was very minor and creating long term problems.         
Mandating Health Care
The health care mandate Bernie signed into law that puts an $8,000 per person health care expense on the business almost doubled labor expenses.  Given that this reform would be bringing the cost of the average employee from $10,000 to $18,000 and add $800,000 of extra costs to the business.  Many other business models need to be considered, if any are even possible. 
Doubling the Minimum Wage to $15
Bernie signs into law a new minimum wage.  Given that the employees are 16 and 17 years old, it is fair to say that they do not have a lot of experience or skill that earns the business well over $15 an hour.  This business model barely works at $7.25 to $10 an hour and raising  it to $15, doubles the labor expense to $2 million where only $1 million was available.   
Shutting Down the Businesses
Any one of these changes will harm this and many other business models and all three will overwhelm this business model. All the benefits listed above go away.  Hundreds of inner city teens will be forbidden by law, to sell their labor for $10 and hour and learn important job skills.  
Hundreds of thousands of dollars will not be paid to the government, rather hundreds of thousands would be added to the government assistance programs.  The poor that ‘need’ the product or service provided by these companies will have to pay double or more, creating much harm to the poor.  Many will just do without.   Vendors that supplied, this now out of business company, with goods and services has less business, thus less pay as well.     
 


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    Bill Haley

      Bill Haley started Haley2024 in the spring of 2013 in an effort to his part in restoring freedom to America.

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