The New Edge of Cedar Mesa

Donegal Descendant

Donegal Descendant
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Colorado,
Birthday
December 04
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As of December 1, 2012 I will also be posting on Our Salon. Note that I am unable to open any pm's I receive due to software dysfunction here.

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DECEMBER 26, 2012 9:44PM

A Small Businessman's Voce From the Real America

Rate: 3 Flag

 

 

The following “news story” appeared in a local libertarian rag under the headline “Delta’s Deitch Haus restaurant closing due to bad economy.”

Pete Miller made his decision to close the restaurant in July, long before the reelection of President Barak Obama, but the outcome of the Nov. 6 election confirmed the decision he’d already made, he said this week.

<snip>

 

The owner of the building and property wanted a five-year lease, and he just didn’t feel comfortable signing a long-term lease considering the local economy and the prospects for Obama’s reelection.

During the first five years, rent and operating expenses totaled more than a quarter million dollars, Miller said. “You look at another five years—you’re in half a million dollars and you still don’t own anything,” he said of the lease proposal he rejected.

A Memmonite family, Miller and his wife Eva and their seven children (the eighth is on its way!) moved to Delta in 2007 and opened the Deitch Haus at the beginning of 2008. Pete is confident he will be able to make a good living in his new career, multi--level marketing of Pro Agri-9 Plus with L-Arginine, a health supplement reputed to aid the cardiovascular system.

Miller doesn’t blame Obama entirely for the poor economy “but he sure hasn’t helped the situation,” he said. “He publicly stated he will put the coal mines out of business.”

What does this do to the reputation of small businessmen as canny, down-to-earth, practical minded businessmen who are knowledgeable about local conditions, what government action is helpful and which is harmful to business, and what it takes to successfully start and run a small business?

I’ve managed restaurants and I’ve eaten in this restaurant a couple of times. It is located right along the highway, highly visible, and has a nice interior in good repair, with a  high ceiling with skylights, soaring  rough-sawn beams, and three separate dining rooms that can seat at least  150 people  total. The menu was always a buffet with choice of three entries—beef, chicken, or pork.

There’s so much wrong in this straight-faced “news account” that it’s hard to know where to start.

The owner is shocked and dismayed to realize his “rent and operating expenses” averaged $50,000 a year. That is not much for a restaurant of that size. Not much at all.  What kind of knowledgeable businessman is shocked by that figure?

But it’s Obama’s fault.

Delta is one of the most impoverished and depressed counties in Colorado, with one of the higher unemployment rates. He must have known that when he took over a building vacant for over a year and opened a restaurant just as the local and national economy was going into a free-fall collapse.

But it’s Obama’s fault.

The lease proposal would have been another $250, 00 over five years “and you still wouldn’t own anything.” What did he expect?  To build up equity under a rental or lease agreement?

But it’s still Obama’s fault.

He doesn’t seem to know that Obama never said “he’d put all the coal mines out of business”. Maybe he gets his “information” from Fox News. That would explain it. And how many coal miners from 35-50 miles east of his restaurant actually come there to eat? Like almost all promoters of coal production, he overlooks the fact that the big threat to coal production is not “gummint regulation” but the massive expansion of drilling everywhere in Colorado for natural gas, which is proving cheaper and much more abundant than coal.  Competition from natural gas is the immediate threat to the coal mining industry, which is actually employing more people right now than it has in at least 15 years.

But it must be Obama’s fault!

This capable, shrewd Job Creator now has a winning idea of how to earn a good living for his family of ten: participating in a multi-level marketing scheme! No store, no overhead, you just market through personal contacts. You recruit others to use and market the product, through testimonials, and they in turn buy in and recruit others, and so on, creating a branching chain (or “root” as some MLM people prefer to call it). If it keeps growing, you start getting a commission on sales down the line. It works much like a chain letter, only there is a real product involved so it’s not illegal. Of course, if anyone down the line breaks the chain, you lose. Your profits depend on what others you will never meet do. Check out the history of multi-level marketing (MLM) schemes and how well they work for 95% of the people who get involved with them.

What is L-Arginine? A naturally-occurring amino acid found in food containing protein and your body also makes it. “Deficiencies in Arginine are rare,” according to WebMD. But it is endorsed by porn star Ron Jeremy for “natural male enhancement”! L-Arginine is supposed to be a vasodilator that helps your heart and blood pressure, but, according to the Mayo Clinic website, “there is almost no data on how the long-term use of Arginine affects cholesterol or heart health.” Some studies have shown it to be dangerous, even fatal, to people who have had heart attacks.

You can buy a 50-day supply at Wal Mart for $3.94. Of course, the elite combination of L-Argentine with other vitamins and supplements, marketed as “Pro-Agri-9 Plus with Arginine” will cost a little more: $69.30 for a 90-day supply with another $11.50 for shipping and handling, making it about $27.00 per month (11.4 times what Wal Mart charges). Or course if all member of your family of 10 are taking this miracle supplement, that’s $270 a month.

These are the clear-eyed small businessmen we are told are the backbone of the American economy, the realists who know who’s who and what’s what and deserve our unhesitating support so they will create jobs and revitalize the American economy. They know what’s needed. They have the answers. Let’s get behind them.

If  only Obama would get out of their way!

 

 

 

 

 

 

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Comments

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This is worthy of comment, because it is a masterful refutation of a fraudulent premise with respect to business economics . Excellent.
OMG....this situation is just so topsy turvey.
OMG this situation is just so topsy-turvey...
Thanks, Sagemerlin and Algis. Paul Krugman's blog today references the "fraudulent premise": that businessmen who are "resumed to have the know-how to deal with all the important issues." In fact, "the reality is that the business leaders intervening in our economic debate are, for the most part, either predatory or hopelessly confused (or, I guess, both)."
DD...I guess I shouldn't have laughed as hard as I did while reading your critique of the "news article", but I did. I realize this is a serious subject, but the way you handled it was a thing of beauty. So great to see quality items like this still popping up in the fractured forum.

Thanks.
Pretty much sums up the myopic vision of the Tea Party crowd. faved and rated!