Thursday, July 25, 2013

All Small Business Hail Communist China!

I have no more use for communism than for capitalism, but if the communists keep up their relentless good policy decisions, they are going to bury the capitalists.  Good riddance.
The central government has rolled out another round of policies to try to give a lift to the economy amid the current slowdown.
The new measures include suspending taxes for small businesses, simplifying customs clearance procedures and further opening up the country's railway sector.
The State Council has decided to suspend the value-added tax and turnover tax for small businesses with monthly sales of less than 20-thousand yuan starting in August.
The Value Added Tax, or VAT refers, is the tax levied on the difference between a commodity's price before taxes and its cost of production.
Local governments and private firms will be allowed to take ownership and management rights for inter-city railway links and municipal rail links.
You mean there is a place on planet earth that cares about small business, outside of the Vatican?  You mean there is a government that believes mass transit should be in private hands?!

Yes, when the world economy goes down, China's will too.  But no, the Chinese people will not rise up and overthrow the communists.  China will rebound first, as USA devotes ever more resources to reading each others mail, and seriously considers as a mayor of a major city a man who emails pictures of his pee pee to girls.  (But then this is being advanced as a prelude to blaming the Jews for our economic difficulties, an ancient custom.  That Weiner would accommodate blood libelers is nothing new either.  In life something must be different to be interesting.  Politics is for stupid people who don't notice it is the exact same thing over and over.  Or don't care. Weiner fits the bill.)  Conditions in China will be bad, but better than anywhere else.

China is learning from Hong Kong.  The ChiComs are in dire fear of "the fruit seller" the lowest of the low.  The communists are nailing abusive party members, even throwing Bo Xilai to the wolves.  That would be like Dick Cheney going to prison.  In USA policy makes small wine importers pay import taxes while big wine importers go near duty free.  All small fruit dealers are ripped off by our system every day, compliments of PACA.

China learned from Hong Kong, where if you have a government job, you are guilty until proven innocent, as opposed to USA, where you are always innocent if you work for the govt, no matter what.   (Cowards) Hong Kong has the ICAC that puts officials in prison.  (Many actually just escape. That saves taxpayer money.)  Of course, they use truth commissions, that is immunity from prosecution to break up corruption, but USA will never allow that.  Uggghhh!  We are getting skunked here!

China has Hong Kong, the pearl of the orient, to learn from.  USA has no such asset.  Detroit would make an excellent place for a USA version of Hong Kong.  Entire peninsula upon which Detroit sits.  (Is that a peninsula?)

We have the problem of the decision makers do not experience the effect of bad decisions.

Feel free to forward this by email to three of your friends.


2 comments:

Anonymous said...

John, I've become convinced that the "sweet spot" for being in small business in America today is remaining an independent sole-proprietorship, and hiring additional people as needed for particular projects on an independent contract basis. I believe in keeping it simple, and still make big money without all of the headaches of running and growing a business in contemporary America. Once you hire that first, single employee, your business gets under the umbrella of all kinds of burdensome regulations and employment requirements, etc. It's like you'll need to hire another person to be your HR department as well just to keep up with the paperwork.

Matthew said...

Completely agree, what line of customer employment are you in that you only need contract ed people?