I can't believe the reserve bank and governments in Australia that every time we get a head of steam in the old terms they try to put the brakes on with increased interest rates and the recessions we have to have all in the name of curbing inflation. Then when they have derailed the small business sector like a Titanic iceberg they start to throw everything overboard like it will help us float after we have already drowned. They are the reserve bank they must have had some history of cycles if they wanted to slow inflation they should have tightened money supply or credit availability. Now there is no confidence in the economies of the world they themselves panic with lower interest rates. Again they would be better off tightening irresponsible credit to those that don't need it. Small business needs the liquidity and confidence to borrow.
There are enough other baggage like red tape,government bureaucracies,competition from huge corporations to slow small business which is the real engine and employer of our nation. The taxes most of us pay come out of the profitability of these overburdened entrepreneurs.I mean government employees don't really pay tax as they don't produce anything that can be sold. Large corporations don't pay much tax as they are not as efficient and have foreign owners that charge huge fees from tax haven parent companies to avoid paying tax here. Employees of small business are not really paying the tax it is the business that pays it out of its turnover , if the operator do not produce the dollars you don't get to pay the tax. If that business goes broke no more taxes are collected and the employees become a drain on society.
At the moment the CEO's of many multinational companies are announcing redundancies for huge numbers of workers to appease the shareholders to maintain dividends. Well if there is only a marginal reduction in productions the CEO's should be fired too with no package as well, as they are the ones that let the business become bloated and inefficient. A telecommunications company i no longer use sacked 10 managers in one department i know of, only to have to hire 9 of them back once they had become private consultants at a much greater fee. Every time the CEO's stuff up their answer is to announce job cuts which just adds to the lack of confidence and generally is just a ploy to disguise the fact they have not been doing a good job. Most of the lay offs end up being disgruntled employees of the poor management and retirees that were going anyway. These are the same management that piled on the highly leveraged huge debt burdens in the name of expansion ,instead of natural organic growth. It is not rocket science but just lemming mentality.
