Herman: John L. Herman Jr., Author

Herman School of Business

American's are Ostriches...

When the major manufacturers in America moved their plants overseas, causing hundreds of thousands of people to lose their jobs…American’s focused on the fact that you could buy products cheaper. Those losing their jobs could just be re-trained.

As the “Rust-Belt” became a reality and the tax base of those areas of the country grew larger some cities almost went bankrupt from the lack og industry and jobs. But look…the new Wal-Mart just opened and we can get a six pound jar of pickles for three bucks. Your neighbor is out of work for ten months but he can get a bottle of Tylenol with 1,000 headache tablets for less than a ten spot.

The bankers took care of everyone over the hardship of changing America by extending credit like you wouldn’t believe. That out of work neighbor just got a new car and he cuts his lawn on his new John Deere bought at the Big Box Store for cheap…on his new credit card. And looking for a job is tough when you have to be home to tell the swimming pool guy what you want done this week. Thank goodness your wife has a good job with benefits.

But as Americans have slept a funny thing happened to Corporate America. They moved out of the country. Not just the factories or the headquarters so they don’t have to pay taxes anymore. They even left the American Customer home alone. They found out the dollar is worthless and the Euro is King. So they started exporting their goods formerly made in America but now made in the Pacific Rim to the people in Europe who have cash and no debt, so they can buy whatever they want. Oh yeah, over there they also have jobs because they haven’t put their head in the sand like we have.

Politicians scream about the shrinking middle class. And then they tax them to death and give the money away, sometimes to large corporations who owe taxes but don’t pay. There was a report this week that 80 Corporations with Government Contracts owe $800,000,000.00 in taxes, yet the government keeps sending them checks because one hand of the government doesn’t know what the other hand is doing. Medicare is going broke. Social Security is going broke. The banks now understand that Americans are going broke so they have cut off new credit…but people used to borrow on one card to pay off another card every month and now they can’t do that. Foreclosures are up 112% in one year. And the worst is yet to come.

Get your head out of the sand. And do something about this for yourself, don’t wait for someone else to help you. Stop digging the hole deeper and start climbing out instead. I have faith that in America you can achieve success in any kind of Economy. But your head can’t be stuck underground, you have to be in the real world to make it happen.

I plan on doing some things different. I am willing to elect people with no government experience. I may work a few hours for some new Office Seeker this year who isn’t burying his head in the sand. I will shop at a Mom-and-Pop place to give them a break. I will give away 1,000 of my books to business owners who need the information to make it. What will you do?

Comments

I really want to argue with you, but it is difficult because you are right.
I grew up in a town with a steel mill. The union went on strike, management wanted to cut wages and reduce headcount. NO WAY said the union. They just closed the mill. No one had a job. (Pueblo, CO in the 80’s.)
The real problem is that many people have no one but themselves to blame. You should read Scott Adams Dilbert blog where he talks about cognitive dissidence. The writing is fun and the point is sharp. It is damn hard for people to admit they are the source of their own troubles.
Are you advocating govmt protection? I don’t think so. That just makes it easier to ignore the problem.

What keeps me up at night is this. I’ve been good, don’t carry debt for trivial purchases, paying off the house on a 15 year fixed mortgage, etc. We make good $$, but still middle class.
I know I will get screwed by the govmt “fixes” for this problem.
Right now I feel stupid for being smart. It would be far better to be ignorant, in debt, and behind on my mortgage. Then I can get the handout and leave the bill for some other sucker.

HERMAN SAYS: Nah...you really can sleep better at night living your way. Learn to filter out some of the "stuff" being done to clean-livers like yourself. Because you "do it right" take an occasional moment to enjoy your debt free/stress free existence.

Written by Doug on 2 May 2008

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Welcome

After 30+ years in business, I’ve decided that it’s time to share my hard knocks knowledge. Having worked in almost 200 bankruptcy cases and many other kinds of business failure situations, I have awarded myself a Ph.D. from what I refer to as the Herman School of Business. In this blog, you’ll read about starting a business, running a business, and, if the situation calls for it, selling a business; about being a business success and not a business failure. Welcome …

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