Elections affect your business
The word “if,” as in if only I had tried, led you to enter the PHC contracting business world in hopes of being in charge of your own destiny. However, since forces outside of your direct control affect your business results you must utilize your understanding, intelligence, common sense, and knowledge of history to influence those forces to affect your business results in a positive way. If you do not, your American dream could turn into your business nightmare.
One of those outside forces is election results. For the last 16 years with PHC News I have always offered information about how numbers and management procedures affect your business. Elections are another factor to consider.
I do not intend this writing to be political and to tell you for whom you should vote. That is solely your decision. I am passing on historical facts for you to contemplate regarding the effects of elections on business.
As to history, in 1972, poor economic times and a lack of contracting business prospects in the USA hindered the potential for business success. Unemployment and inflation rates were out of control and rising. By 1974, Richard Nixon resigned as President. His VP, Gerald Ford, ascended to the presidency but had no luck in stemming the tide of economic malaise.
Ford’s successor, President Jimmy Carter, did nothing to solve America’s continuing economic dilemma. And, his ability to properly defend our nation, the paramount duty of President, was lacking at best.
Carter’s foreign affairs’ policies proved to be detrimental when Iranians attacked and took over the American Embassy in Tehran holding 52 Americans hostage for the last 444 days of his administration.
During a bungled rescue attempt of those hostages, American helicopters crashed in the Iranian desert resulting in eight dead US servicemen; no rescued hostages; and, America’s prestige, morale, and economic future plummeting further into the abyss of economic depression.
Effects on business
Grave conditions such as these negatively affect your business results, and, are caused by politicians who lack the strength, courage, common sense, integrity, and intelligence to affect efficient and equitable operating policies.
Politicians who promise everything to everyone without consideration of, and the ability to pay for, the costs associated with their promises offer nothing to anyone other than more problems.
Wasteful and foolish spending of our tax dollars only serve to exacerbate our economic problems. With each additional governmental mandate, rule and regulation your operational costs, and the prices you must charge consumers you serve, increases as our national debt and the amount of taxes we must pay rises and the burden put upon our children’s future becomes more cumbersome.
Our nation was conceived when colonists were tired of duplicate taxation and “taxation without representation.” Yet, in addition to paying income taxes, we are forced to pay sales and use taxes on items and services we purchase with the income left after our income taxes are paid.
The height of governmental audacity comes when government again taxes that which has already been taxed when we leave it to our heirs upon death.
Absurd tariffs affect your business since Americans have less money to spend on your services. 50% to 75% of the operational costs you incur as a PHC contractor are caused by governmental mandates. When a consumer complains about a price explain this fact to them. Lay the blame where it belongs - on government. You are just trying to fulfill your client’s requests and make a living within governmental parameters.
High minimum wage laws also negatively affect our economy. New entrants to the industry workforce who know nothing cause the amount paid to skilled employees to artificially rise further increasing the prices your clientele pays for your services.
Compounding the problem is your responsibility to match the 7.65% FICA deduction of employees because government refuses to keep those funds in a lock box and issue payments to the employees for whose benefit those funds were contributed in the first place.
Taxation on the price of fuel also affects your business and the economy as a whole. But, from the looks of our infrastructure, it is not all applied where it should be applied.
The economic malaise our nation faced in the past is today being resurrected by politicians on both sides of the aisle who think their duty is to rule us rather than serve we the people. Ruling Americans is not what our forefathers envisioned for “the land of the free and the home of the brave.”
In 2016, although Wall Street is seemingly doing well, Main Street, where you operate your business and live, is anemic. Your business results are suffering from malnutrition. The amount of money Americans have on hand to spend on your services is diminishing.
Reagan fixed the problem
In 1980, Americans remedied the poor economic conditions of the 70s by electing a strong and competent leader for President Ronald Reagan. He possessed courage, common sense, integrity and intelligence, and, first coined the phrase “Make American Great Again.” during his campaign. Even our 42nd president, William Jefferson Clinton subsequently used the term during campaigns.
All presidents should strive to always make America great. The question which arises is which person can fulfill that mandate.
In January 1981, just hours after Reagan’s inauguration as the fortieth President of the United States, the Iranians realized Reagan was serious about defending America, and so they quickly freed the American hostages. Reagan’s “Make America Great Again” project was underway.
Reagan’s supply side economic theory called for lower taxes to spur the economy; reducing government spending; stemming inflation by controlling money supply; and deregulating of that which affects the economy in a negative way.
Reagan knew when tax rates are reduced, Americans have more money to spend on the services and products businesses (like yours) provide; demand leads to more jobs created; and, increased productivity allows tax revenue the government has in its coffers to rise without overburdening American taxpayers.
Reagan’s policy proved this true. Wall Street and Main Street prospered. Reagan had an average annual 7.9% GDP growth compared to our current average 2.9%.
During Reagan’s presidency, contractors like yourself did not worry about finding work. Since consumers had more money, they sought out contractors to fulfill their many requests. The problems facing contractors were scheduling all the jobs they had and supplying the labor force to get the jobs done. The labor force also benefitted from the cornucopia caused by the Reagan induced economic atmosphere.
Ronald Reagan made America great again while making the business world successful.
On foreign affairs
Regarding foreign affairs, Reagan proved America’s capitalistic supply side economics were right and America was strong as he laid the ground work which revealed the Soviet Union’s communistic society was wrong. In dealing with the Soviets regarding nuclear disarmament, he coined yet another phrase “Trust but verify.”
The Soviet Union eventually collapsed under the weight of suppressive governmental tyranny. But today, Russia, the main nation of the Soviet Union, is again flexing its muscle in an attempt to annex other nations. And, the Middle East is consumed in barbaric killing as terrorism is being exported across the world.
Once again, we are faced with economic and safety related issues that threaten the future of America and continuance of our way of life.
Voting is important
Your future economic horizons and safety, and, those of your family and employees, can be influenced in a positive manner by electing a strong and competent leader, like Ronald Reagan.
Once again the word “if” arises with the potential for profitable or detrimental results for your business and lifestyle. If you don’t vote, or, if you vote for the wrong person, you are, in part, responsible for the results you receive. But, vote you must.
The two major political parties offer to you the choice of Donald Trump or Hillary Clinton. Put aside the opinions of others and look into the pros and cons of these candidates so you can make your own educated decision.
At the end of the final presidential debate of 1980, Ronald Reagan posed the question “Are you better off now than you were four years ago?”
Before choosing this November ask yourself which candidate offers the best opportunity for you to gain your contractor profit advantage, and give all Americans the opportunity to enjoy “life, liberty and the pursuit of happiness.”
The next president must have the skill and intent to:
- Keep Americans safe.
- Provide the opportunity for Americans to enjoy a bountiful business atmosphere;
- Create private sector jobs;
- Lower taxes for Americans while giving government more revenue to manage governmental responsibilities;
- End wasteful spending of our tax dollars; and,
- Be strong and intelligent when negotiating deals for America.
Before voting — remember Reagan.
Richard P. DiToma has been involved in the PHC industry since 1970. He is a contracting business coach/consultant and an active PHC contractor. For information about the Contractor Profit Advantage or to contact Richard: call 845-639-5050; e-mail firstname.lastname@example.org; mail to R & G Profit-Ability, Inc. P.O. Box 282, West Nyack. N.Y. 10994.