Reality Check Time
Business Makes the World Go Round
Yeah sure - we've all seen the movies about the ruthless greedy wall street traders who manipulated the system for their own reward - and the big banks have alot to answer for too.
In fact - nothing has changed, regulation wise, in America, another so we could have a Global Financial Crash again any time now.
The Obama government did nothing to stop it from happening again, they introduced no new measures or laws to stop the banks and financial institutions from doing the very thing with sub prime mortgages, that they did pre 2008 - that caused the collapse of the markets and many financial institutions.
I also agree that corporate business is probably pretty good at tax dodging and should be audited more closely for that.
But the business that holds NZ together is the small and medium size businesses owned by Kiwis, or those that have come here to make NZ their home, employing Kiwis.
When business confidence is low they stop hiring. People get laid off. If business isn't doing well - the country doesn't do well.
Here's how it works for anyone who missed Economics class.
- Business owner funds themselves to start business. Or borrows money from bank to start up.
- Business owner works 120 hours a week to get it off the ground and then hires some staff to help.
- Business earns profit from goods or services (that's how business works)
- Business pays staff for working 40 hours a week.
- Staff spend wages on clothes, a night out, save some (maybe)
- Business contributes to Kiwi Saver for the employee
- Business pays for the employee to take 4 weeks holidays
- Business pays for new mother to take 22 weeks maternity leave (as well as government)
- Business pays for employee to have a day at home on a public holiday
So in the land of fairies where everything is so black and white it seems - the fairies seem to think that business owners have so much money, and all drive around in fat cat cars and do nothing apparently - while the poor worker gets paid for showing up. What have they been smoking??
Employers reward good staff - they don't want to have to lay anyone off. But the reality is only 75% of new businesses survive the first 4 years and only 50% survive 10 years or more.