How Government "Reforms" Prolong The Great Recession


government help cartoon

NPR's Morning Edition aired an interesting segment this morning about how small businesses are faring during the Great Recession. The program focused on the travails of Rapid Delivery, a family-run shipping business in Rapid City, S.D. What caught my ear was this bit of reporting at the end of the segment:

Like many businesses, Rapid Delivery isn't making any new hires. [Co-owner] Brian Evans says he's afraid to grow or expand this company because of the uncertainty that looms over federal legislation on things like climate change and health care.

And well Evans might hesitate. Rapid Delivery has annual revenues of over $500,000 per year and more than 10 employees which means that under the health care reform legislation the company must supply health insurance or pay a penalty of 8 percent of payroll. And if climate change legislation passes, you can be sure that Rapid Delivery's fuel costs for its van fleet will go up. Gives you a good sense of what,  "I'm from the government and I'm here to help" really means.

Whole NPR segment transcript here.


NEXT: Rudy Can't Fail (If He Doesn't Run)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  1. $500K a year in revenues is way too low to have a 10 man payroll. Just sayin’.

    1. Not necessarily. It doesn’t say the are full time employees. They could have ten part time housewives and college student types.

      1. John, you are right. They could also have ten part time househusbands…

        1. Yes, and the sound of galloping heard near a racecourse could also be made by zebras. It is totally speciest to assume that you are hearing horses instead.

          1. BSJ, you are remarkably provincial for someone who uses a three word moniker.…..-camel.htm

        2. Mary Stack strikes again.

          Something strikes me as very first-year-bryn-mawr-women’s-studies-student about you.

          1. Paul,You are either a clever little boy or perhaps you have limited exposure to woman and can recall every conversation you have had. I suspect that like most Libertarians that I have toyed with it is the latter. Btw, you are dead wrong about me.

            1. Care to toy with me, honey?

              1. I may have had already but if our CONVERSATION lasted less than a minute, well, I’m sorry I would have completely forgot.

                1. No doubt you’ve had thousands and thousands of very breif conversations. No one wastes time on a sperm whore.

                  1. Rude and not clever. Go play elsewhere you bore.

                  2. OO=========D, something interesting I noticed about your spelling. You make the same mistake even when you post under your real name.

            2. Second year student, Mary?

              1. Paul,You are either a clever little boy or perhaps you have limited exposure to woman and can recall every conversation you have had.

                I’ve been called many things… a “clever little boy” isn’t one of them. But I’d take that description if it came.

                As far as my exposure to women, you are right, as of late, my exposure to women has been extremely limited and I’m trying to rectify that. Ooh, there goes one now… anyhoo… By “recalling every conversation I have had” I assume you meant every conversation I’ve had with women. Unfortunately, alas I cannot recall all of those conversations, and if I could, oh how handy that’d come about right now.

                1. Paul, “you are right, as of late, my exposure to women has been extremely limited and I’m trying to rectify that” I have noticed that this is a common symptom of being a Libertarian. When all the boys your age were out partying you were either playing dungeon& dragons/ watching Star Trek or obeying your parents. I seriously am going to start an advice blog for geeky adult boys/girls stuck in adolescence. I may as well get started with you. How old are you?

                  1. Good to know when we grow up, mature, and become adults we learn to unwaveringly accept authority without questioning it, understanding that it knows what’s best for us.

                    I always linked growing up to learning, but thank you for pointing out that I can discard all that once I understand that someone else is looking out for me and that I can stop paying attention and asking questions.

                    1. Matt,are you posting in the right place?

              2. Paul not even close.

    2. A) It’s SD, not NY.
      B) It’s a shipping company, not a software company.
      C) What John said.

      1. “What John said” Ok boys sing along: when you’re sexist and you know it CLAP your hands.
        when you’re sexist and you know it CLAP your hands.
        when you’re sexist and you know it and you really want to show it CLAP your hands!

        1. Don’t you have a kitchen to tend to?

          1. That is what househusbands are for.

    3. All it says is that it’s over $500k, not exactly $500k. That, plus the >10 man payroll puts you on Harry Reid’s hit list.

    4. From the article “..,over $500,000 per year and more than 10 employees…”

      There is no upper limit to either figure, so 50K revenue per employee is not implied. 5 Million is oveer 500K and 11 is over 10.

  2. Ska: Good point. The NPR segment reports “over a half-million dollars a year in revenue”. My guess the family doesn’t reveal all the company’s revenues and kind of low-balled for the reporter. I will now fix.

    1. My guess is some of the workers are off the books and those that are on are making less than 30K per year. That does happen outside of the Tristate area … you know, that part of the classic New Yorker cartoon that looks REAL small

  3. Like many businesses, Rapid Delivery isn’t making any new hires. [Co-owner] Brian Evans says he’s afraid to grow or expand this company because of the uncertainty that looms over federal legislation on things like climate change and health care.

    Such fears should not be considered anything new: the second Great Depression of 1937-1941 existed because of the very same fear. Businesses and investors kept their long term investment plans and even overhaul plans on hold because they did not know what the government of FDR was going to do next.

    In Mexico, during the years of the rulling party, businesses did not normally make long-term plans; they planned for periods of 6 years at msot. This coindiced with the presidential elections which are held every 6 years. This is because the only way businesses could know the economic environment they would have to face was after knowing which presidential candidate was designated to win the elections [no, I did not write that incorrectly], which could either be a leftist or a centrist. This kept Mexico from growing for almost 40 years after the Mexican Miracle of the 50’s. So I *know* exactly how those small business owners feel now in the times of Pharaoh Obama I.

  4. “How Government “Reforms” Prolong The Great Recession”

    I’ve seen this movie before.

    I think it was titled “FDR’s New Deal follies”

  5. And let’s not forget the card check legislation that looms over Rapid Delivery. Mr. Evans might soon have some union goons muscling his employees, followed by the Department of Labor telling him what he has to pay them.

  6. I get the feeling that the conclusion drawn by your average NPR listener was that Congress needs to hurry up and pass everything Obama wants. Its the uncertainty that is hurting business, not the fact that health care reform and cap and trade are just bad ideas. It’s those damn republican obstructionists.

  7. Ooops:

    Small-business bankruptcies rise 81% in California

    In California, the need is great.

    Over the last year, the Los Angeles, Riverside/San Bernardino and Sacramento metropolitan areas have led the nation in small-business bankruptcy filings, said Tim Klein, a spokesman for Equifax.

    About 19,000 small businesses filed for bankruptcy in California during the 12 months ended Sept. 2009, up from 10,500 the previous year.

    During September alone, 2,229 small businesses filed for protection, up from 1,503 filings in September 2008, the firm reported.

    Kathleen March, a bankruptcy lawyer in Los Angeles, said she often pushes her clients to file for personal bankruptcy instead of a business filing because it’s easier.

    Many people also close down their businesses thinking that will solve their problems, only to find their companies’ debt lives on, March said.…..5684.story

    1. Well, the good news is that banks in California will start lending to small businesses again!

      Uh, what ever for? I have no idea – but Obama said this would bring Paradise back to Earth and all our sins would be firgiven if only banks started lending again.

      1. Pharaoh Obama I needs the economy to recover soon, so he can scrape up enough tax money to build his pyramid. Pyramids aren’t cheap you know.

      2. Meanwhile, I refuse to feed the trolls.

  8. If it comes to the planet or some shitty little business, right-wing libertarian fucks go for the shitty little business every time. I mean, what kind of a planet would it be without shitty little businesses anyway? Don’t even get a right-wing libertarian fuck started on health care for everybody or lower taxes for ME.

  9. Isn’t “boy” a sexist term?

    BTW… shut the fuck up, Morris.

  10. Yes, “boy” is a clear sign of discrimination against young people. Who should be empowered like all other groups on the world. Soon, there will be a “percentage of young people in leadership positions” requirement imposed across the board in America.

Please to post comments

Comments are closed.