Disclaimer: I highly recommend reading this once, waiting a day, then reading it again. Repeat as necessary. While this article may seem outlandish to some, I truly believe it’s one of the principles that is breaking the United States apart, and will ultimately lead to an inevitable collapse of the country just like any empire before it.
I know a number of small business owners. In a particular case, I know the owner of a small machine shop. This owner has been in the business a long time 30+ years, and has provided for his family during that time.
In recent times, he even doubled his prices on most of his work after not raising his prices over the decades before and didn’t lose much business at all. Still his prices aren’t at the rates they should be. He’s collecting a medical insurance subsidy from the government.
Why is this important?
Undercharging customers breaks the “efficient free market” system. It relies on government to make up price differences to be competitive. And it’s a negative spiral. Other companies now have to compete with undercharging companies, so they too become undercharging companies leading to more dependence on government assistance.
I see a number of older generations telling me that younger generations have gone crazy. That the world is becoming too socialist. If that is to be avoided, we can’t hide the true capitalist costs and expect the government to fill in the gaps. Companies have to charge the real price that covers all of their bills and expenses for owners and pays a living wage for employees. If there is a shortfall, and the owner is getting a $20,000 subsidy from the government for medical insurance, it’s time to look at the work prices again, and divide a $20,000 increase across all the quotes and a little extra to get ahead.
If business owners don’t set prices at levels that cover their actual costs, how can a country not become dependent on the government? It’s the business owners who controls the pricing doesn’t even it set it high enough for himself to not need government assistance, how can companies pay employees in a manner where they to don’t need assistance from the government?
It’s easy for a small business owner to look at the political climate and say, I’m not responsible for creating those people who are mad that they make so little, I’m just a small player in a big system. Of course, that big system is made up of tiny little gears that are all interconnected. If you’re taking work from someone who is charging rates to cover all their costs, meanwhile you’re on government assistance then you are contributing to the socialism movement here in America even if you claim to be against it.
If you’re a business owner, be the change you seek in the world. Charge higher prices if you need to, let’s live capitalism as it was meant to be.
P.S. I know were in a unique situation for the pandemic here and possible recession/depression. That’s a different scenario that requires government intervention in massive doses. This scenario was taking place in the supposed strongest economy ever.