The human side of too much government
Posted by Lucky 8 years, 10 months ago to Government
Greek journalist, Despina Antypa was worried about her job.
She planned a career in business. After working all day she attended baking classes until 10pm and practised pastry-making skills at nights and on weekends. Then as feared, both she and her husband lost their jobs and went on benefits. All their savings went into the new business – investing in a website, building a brand and establishing premises. Things were going to get better.
But the bureaucrats had other ideas. Despina relates the nightmare of trying to set up a business in Greece today. She had to forecast her profits for the first two years and then pay a tax of 50% on that estimate. That amount had to be paid regardless of whether she made that profit or not. She needing 20 sqm for her bakery, she was told she had to purchase at least 150 square metres. Regulations also required additional toilets, fire exits and the building of new walls. Health and Safety departments gave contradictory instructions.
There is no happy ending to this story.
She and her husband, with their dreams and aspirations, ended up leaving Greece.
For the optimists- whichever the country they went to, made gains of people with skill who want to work.
nytimes.com/2014/07/03/opinion/greek-recipes-for-survival.html
(gone to a subscription only page)
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A optimistic migrant story
A HIGH school senior in Southern California achieved a surprising academic clean sweep - he has been accepted to every Ivy League school.
- the son of Mexican immigrants whose schooling stopped in the eighth grade
His biggest motivation was letting his parents know that their hard work meant something
http://www.news.com.au/world/breaking-ne...
She planned a career in business. After working all day she attended baking classes until 10pm and practised pastry-making skills at nights and on weekends. Then as feared, both she and her husband lost their jobs and went on benefits. All their savings went into the new business – investing in a website, building a brand and establishing premises. Things were going to get better.
But the bureaucrats had other ideas. Despina relates the nightmare of trying to set up a business in Greece today. She had to forecast her profits for the first two years and then pay a tax of 50% on that estimate. That amount had to be paid regardless of whether she made that profit or not. She needing 20 sqm for her bakery, she was told she had to purchase at least 150 square metres. Regulations also required additional toilets, fire exits and the building of new walls. Health and Safety departments gave contradictory instructions.
There is no happy ending to this story.
She and her husband, with their dreams and aspirations, ended up leaving Greece.
For the optimists- whichever the country they went to, made gains of people with skill who want to work.
nytimes.com/2014/07/03/opinion/greek-recipes-for-survival.html
(gone to a subscription only page)
---------
A optimistic migrant story
A HIGH school senior in Southern California achieved a surprising academic clean sweep - he has been accepted to every Ivy League school.
- the son of Mexican immigrants whose schooling stopped in the eighth grade
His biggest motivation was letting his parents know that their hard work meant something
http://www.news.com.au/world/breaking-ne...
The state came along and wanted me to install sprinklers and ventilation system to handle any fumes. I simply closed the operation down. Add in all the costs of meeting regulation that should not be there. We had no fumes and no risk of fire.
We were taking PC cases and using a screw driver to assemble the components and install an Operating system with a scripted install process from a central server and then run a QA test to make sure they worked.
The taxes I was paying went out the door and two part time jobs also were gone. I lost a great second income and long term the state lost what would have likely grown into a significant web based business selling PCs to people that know how to take care of them and do not need long term support or to pay for it in the price of the PC.
Even more important is the fact that I really lost interest in starting any kind of business because of the red tape and regulation imposed by the state. I think there is a completely huge and unmeasurable cost to the economy due to people who decide very simply to just not put up with it and shrug.
When Wm and I founded Schuyler House, we filled out a single form that said, "We are starting a corporation." paid about $200 and got a set of papers back that told us what to do next. That was in Calif in about 1993...
It was all very encouraging.
Jan
We paid for an occupation permit (which I resented) had our lawyer incorporate it, moved in, set up, and we were in business. 46 years later...read the above. Even then I found enough inequities to inspire me to write a column for the trade papers in our field.
In the NYT article, Despina says
' I, like thousands of others trying to start businesses, learned that I would be at the mercy of public employees who interpreted the laws so they could profit themselves. '
In Mexico, you have to pay for high school, which is why so many drop out after 8th grade. In my community, a high school serves roughly a 50 mile radius of communities. This means many students have to board during the week, further increasing costs
In this example, the nation of Greece lost two people who no doubt were good journalists, tho' I am inclined to think there are enough journalists but not enough entrepreneurs.
It is not just redistribution, it is a clear economic loss.
There is an unstated inference in the story that bribery would have cleared the way.
There are comments here about Virginia, New York, LA and Denver. I suppose like in Australia there is little overt bribery, (I could say that the bribe is built into the base pay, like tips in restaurants.) The struggle for a small business is wading thru the regulations approval and licenses. Health, safety, environment, and here especially, the labor rules.
There is a growing industry of consultants ready to help here. Guess which way they vote?
Perhaps there is some level of government control -as in the Laffer curve- that produces an optimal outcome, at least in economic terms. The problem is, even if there were, how to stop it growing?
about the Antypas. At least they managed to get
out of Greece.
Here's the way it works: the tax police come around to your business and they look up the kind of business on a chart. If you have a small shop selling gyros you pay X per month in taxes - regardless of your actual income! And you have to pay the taxes right then - regardless if you have the cash!
They even paid the United States IRS to come in and do a study on how they could implement a real corporate tax policy. After six months, they gave up because Greece couldn't even identify its own citizens!
Greece is only barely tolerable for the tourists. The people there are repressed by a socialist government which is anti-business and anti-freedom.
Even if it's not our Gulch, a country that can meet that test is the one I want to be in.
It's in the news too much...
Average wages run 1000 to 1500 for a two week pay period of 12 days.
Schools are primarily equipped with computers and have very little in the way of books on paper.
Fringe of hurricane not at 35 offshore but not expected to get much higher in this area. Back to fishing tomorrow.