Unemployment benefits story (sympathy or sob)

It's the "I've got mine, screw you!" mentality.

 

No, it isn't. The vast majority of these people believe that doing that will actually help everyone more in the long run. There's no need to infantalize anyone who disagrees with you like that.

 

Right.

A lot of the rhetoric and motivation seems more like class warfare.

The idea of taxing/punishing the "rich" seems to make a lot of people feel better. But will it do anything to improve the state of the "poor" or the unemployed?

If people felt that taxing the "rich" at a higher rate would lead to a better economy, greater fiscal responsibility, and to a lowering of the deficit, more people would be for it.

Unfortunately, for every new dollar the federal government brings in, it usually spends more than one dollar. It allows the government to put off the hard choices it must make. And will lead to a cycle of higher and higher taxes (and a lowering of the definition of the rich).

And, tax increases designed to hit the "rich" always have unintended consequences that usually hit the "working poor".

The gardeners, nannies, maids, etc. will get hurt.

Everything is tied together. The simple answer of "tax the rich" doesn't work. it just makes people feel better.

 

Well, cutting taxes for the rich hasn't seemed to produce all we were promised it would, either.

There's got to be a middle ground here somewhere.

 

But the problem is, reducing taxes for the rich HASN'T improved the lives of the middle class and the poor.

The income wage gap between the richest 1 percent and the poorest is at its highest in decades. CEOs used to make 35 times what their workers made about 30 years ago. Now it's 262 times according to this one stat I found. And I've seen other sites claim it's 400 times:

http://www.epi.org/economic_snapshots/entry/webfeatures_snapshots_20060621/.

Figure in 1980, the average worker made $20K. The CEO made $700K. Sounds fair. Now, the worker maybe makes $40K. The CEO is making nearly $10.5 million. Even if you doubled the average CEO pay from 1980 to now, he'd be making $1.4 million. So where's that extra $9 million going? In the rich man's pocket.

The rich are making plenty of money. They're just keeping it for themselves instead of paying their workers better wages and benefits.

 

YF, I commend you for doing what you did and becoming so successful at it.

The problem is that you need capital to start your own business. Some trades admittedly don't require much capital. But the example of going to work for Subway, learning the business and starting your own sandwich shops assumes that you'll ever have enough money to pay for store space, equipment and supplies that you need to get started. You could try to get a loan, but that requires having good credit - something you're not likely to have if you've been working for barely minimum wage at Subway and have had to rack up massive credit card bills just to survive.

As for those poo-pooing the need for health insurance, I suppose you can get away without that if you're a single, healthy 20-something. But what do you do if you have children? Or, heaven forbid, you or your spouse have cancer or some other expensive and/or long-term medical condition that you acquired through no fault of your own?

My step-cousin (daughter of my uncle through his first marriage) works for the industrial powder-coating business that my uncle started about 7 or 8 years ago. She was pretty healthy, and her kids had health insurance coverage through their father, so she passed up the . About a year ago, she was in bad car accident, and the resulting medical bills nearly bankrupted her and my aunt and uncle.

YF, I wish all of us were as fortunate as you were (and my uncle was) and could afford to take the risks involved with starting one's own business. Alas, that is not an option for many of us, for a wide variety of reasons.

 

In this particular case it would do something, because the choices for reducing the deficit have been cast as A) stopping unemployment extensions; or B) eliminating the tax cut for the wealthiest 2 percent of people. Given those choices, it's pretty clear to me which one would benefit which side. However, if you're still clinging to the fallacy of trickle-down economics after 30 years, you would see this differently.

 

OK, again, I think we're getting to hung up on the idea of a minimum wage job at Subway.

But, let's go with it. Maybe you're not going to be able to afford to open their own restaurant soon. But, maybe they'll earn a promotion in a short amount of time. Maybe they'll become a GM. Maybe they'll become a district manager.

Most of the people on here are smart. They have college degrees. If they can get themselves on even the bottom rung of a tall ladder, they can move up that ladder very quickly.

Now, going back to 1989, I took an entry level job -- a runner -- on the floor of the Commodities Exchange in New York. My starting salary was $13,500 per year. I had my own apartment in the Bronx and I owned my own car. (A used piece of shit that was fully paid for.)

Within a year, I had received two promotions. I was a manager and between the raises & overtime, I earned over $30,000 that first year.

Oh, and I was 20 years old & a college dropout.

I was able to start my first business not long after that.

Now, starting your own business. Yes, it's going to take some capital. Some businesses will require more than others. If you don't have a lot (and I didn't when I started my most recent business), you need to look for opportunities that don't require a lot of capital.

Also, the vast, vast majority of small businesses are funded with loans from family & friends. It's rare for them to get funding from a bank or the SBA. It makes sense. If your family & friends don't believe in you and your idea enough to back you, why should the bank.

Often it's crucial to line up business from a key/major client before starting your business. If this is possible, you know that you will be able to generate cash flow and you should be able to get loans.

Let's look at businesses that don't require a lot of capital. Part of what attracted me to my current business is that it didn't require a lot of investment. I started it from my home and used my current vehicle. My total investment was some tools and some spare parts. I didn't have to go into debt an I knew that if I failed, I wouldn't be saddled with debt and could go and find a job.

It was worth the risk.

What else doesn't require a ton of capital. Well, let's look at some more service industries.

Lawn care. You basically need a truck and a lawn mower. Most of these businesses are started and owned by recent immigrants. It's unlikely that they had a ton of startup capital.

In fact, it's not always the great idea or the amount of money that you have that will determine your success. You need to be able to attract and keep customers. You need to be able to sell your services. That's more than half the battle and you need to know if you're the kind of person who can do this.

Valet Parking. A big business in some parts of the country. Your capital will be spent on insurance and in securing a place to park the cars.

But, the big thing here will be landing contracts. If you can get the contract for a busy restaurant/club/whatever you'll be able to pay for the parking spaces you will need. Your labor will all be part time and you'll only hire them as needed.

Janitorial Services. You can make a ton of money cleaning offices and such after hours. Again, if you can land the contracts, you can hire staff as needed. You need to sell yourself and your service.

Window Washing. Many of the restaurants I service use a window washing service. Very low capital. With the right tools (a long squeegee basically) you can clean the restaurant's windows very quickly. You don't make much money per customer. You need to line up lots of them, but if you can, you just set up a route. The money adds up.

Carpet/Floor cleaning. I know a local contractor who also does floor/carpet cleaning on the side. He has a little bit of industrial equipment, but not much. His customers trust him. he has the keys and he goes into these restaurants after hours & professionally cleans their floors and carpets. Again, selling your service is more than half the battle. Once you sign them up, it's recurring business.

Cleaning septic tanks & restaurant grease traps. You basically need a truck with a powerful vacuum. Yes, it's more than that, but it doesn't cost a ton to get started.

Car service. My dad's law firm uses a car service a lot. The owner has become a good friend of the family. He's an immigrant from China (and was arrested on his first two attempts to escape into Hong Kong & eventually get to the West). He started with one used Town Car. Now he has several drivers working for him.

None of these things are easy. You'll probably work a lot and not make much money at first if you do try them. You may fail.

But, you may also succeed.

And, some of them -- the after work stuff like janitorial or floor washing -- you might be able to start part-time without quitting your current job. (Since many of you here work nights, the opposite might apply.)

And, if you're not working, there's not much to lose. What's the risk in starting a commercial window washing operation? You can start it from home, with no employees and with a squeegee and a bucket of soapy water.

You'll know before 99 weeks are up if you'll be able to make a go of it.

And, I know that not everyone in America is going to be able to own their own business, but I don't think enough people consider it. They don't envision it. It never occurred to them.

And to act like it's impossible or like the lack of capital is the reason for not trying is a cop out. There are too many examples that prove otherwise.

Look around. Find opportunities. Create opportunities.

 

Look, if any of this interests you, take a look and see what services are available in your community.

I went to a class (one night) at USF when I was living in Tampa & thinking about starting my business. They have a Small Business Development Center there:

http://www.sbdctampabay.com/

They offer consulting & training.

See if there's something comparable in your area. It costs nothing. It might get your gears turning and help you think of something.

 

You're talking about getting off your butt, YankeeFan. What about those of us who just want to sit and watch reality shows?

 

Baby sitting. Look, I doubt anyone wants to hire a creepy 40-year-old guy to watch their kids, but if you're young, female, and need money, you're crazy if you're not looking for baby sitting gigs.

My 14-year-old niece can make $10.00 an hour baby sitting. Will it support a family of four, no. But it's tax free and you can do it part-time and while you are still on unemployment.

I now a girl hear in Chicago. She works full time as an investigator for OSHA. She has a badge an everything. She gets baby sitting work from the Four Seasons Hotel. I'm not sure if it's through an agency, but basically if a couple that's willing to pay $600.00-$1,000.00 per night for a hotel room is traveling with a young child needs a babysitter, they call he concierge to arrange it. The concierge calls her. The hotel bills the guest & pays her. The charges are outrageious. She makes a ton of money.


Massage therapy. Don't snicker. The demand for it is higher than ever. (I said don't snicker.) Yes, you have to take classes, and yes, it takes longer to get certified, but you cam almost always find work.

It does help if you are female as some men and woman are uncomfortable getting a massage from a man, but it's not vital. It also helps if you are strong. The biggest complaint from folks about massages -- especially those given by females -- is that it wasn't hard enough. (Stop snickering.)

I have a friend who is a total flake. She's basically a nomad. Moves to a new city at the drop of a dime. And she's always able to find work -- often before she's even moved.

When she was in New York and briefly taking it seriously, she developed a good number of clients. She had her own portable table and would go to there house.

She actually developed a specialty in pregnancy massage. She had to get a special table, but she made a lot of money.

It helps that she's nearly 6' and is very strong.

It also helps if you live in an area with a lot of rich housewives who are able to pamper themselves. (Though it's used more and more therapeutically as well for athletes and such. The Yankees have a masseuse that travels with the team, and as we learned from Brett Favre, the Jets also employ masseuses.)


Food trucks. You've heard of the famous Korean Taco Truck in LA. You've seen the Great Food Truck Race on FoodNetwork.

Food Trucks are hot. Yes, there's an investment, but it's a lot lower than opening a restaurant.

In Chicago, you can't cook on a food truck by law. Some of the top chefs in the city are trying to get the law changed, but it's the current law. If you want to sell off of a truck, you need to sell food that's been prepared in a commercial kitchen (which can be rented by the hour in many places).

Despite all of this, two food trucks have gotten a lot of attention recently in Chicago. One guy is selling fancy meatball sandwiches. That's it. He tweets hi location and people come and buy sandwiches from him. He's gotten a lot of media attention.

Check out his site: http://www.phillipfoss.net/

Another truck is selling cupcakes. Same thing. Tweet where you are. Sell cupcakes.

There website is here: http://www.flirtycupcakes.com/

 

So basically college is useless?