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We have to SPEND money to keep from going Bankrupt

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FreeEnterprise View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote FreeEnterprise Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 12:09pm

Energy costs have skyrocketed in the past 4 years. I sure wouldn't want to lock in these inflated prices, peter.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Peter Parker Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 12:10pm
Originally posted by FreeEnterprise FreeEnterprise wrote:

You want to really cut costs in health care...
 
 
Put a cap on medical lawsuits... Of course that idea is never floated, as most politicians are lawyers.
 


Actually, it is floated on a regular basis - mostly by lawyers.

There are many reasons why it usually doesn't get much traction, but one big one, frankly, is that the cost of medical lawsuits isn't that great.  Capping recovery wouldn't make much of a dent.

Yep, I said it.

This is true because the overwhelming majority of malpractice funds paid out, the costs that drive malpractice insurance, are payments that would NOT BE AFFECTED BY A CAP.  If a doctor cuts off the wrong leg, are we going to give stumpy $50 for a wooden leg?  No, we are going to buy him a fancy van and wheelchair and put an elevator in his house and compensate him for lost earnings.  That will remain the case even after any cap proposal.  What the caps would do is stop the jury from giving him a billion dollars in punitive damages.

And here's the rub:  giant jury awards are rare.  They get a lot of press, but they are rare.  You add them all up, and they are a drop in the bucket.  So unless you plan on capping direct compensatory damages for physical loss (which has not been seriously proposed by anybody as far as I know), then your lawsuit cap won't amount to a hill of beans.

Now, if you really want to reduce malpractice insurance, go to full-on socialized healthcare.  Now, when the guys loses the wrong leg, his van/chair/elevator is already covered by the socialized system, so no cost to the malpractice insurer.

Which leads to another reason why capping claims isn't a big solution:  malpractice insurance premiums are not the driver of high healthcare costs.  Yes, they are a big-dollar item.  But again, compare total US healthcare costs to total costs for any other country, and you see that the total malpractice premiums don't dent this difference.
 


Quote As for margin, I have lost money every month this year so far. In average over the past two years it is running around 3%.

The well is dry, printers are dying in my town weekly now, and the ones that are able to make it through this are the ones with deep pockets. That didn't buy new equipment and run up debt when things were good.
 
I've been in the printing industry since 94.
 
 
"Secondly, to imply that most printers are over-charging their clients and that profits are too high in this industry is simply to be out of touch with reality. Printing Industries of America studies indicate the average profit margin, from the smallest to the largest shop, is about 4% to 5%. So, if everyone dropped their prices by a whopping 5% there would be no profits at all. The reality is prices and margins are so low that itís hard to justify the high capital cost of equipment. In fact, return on investment has to increase, not decrease."


This just tells me that you may be making buggy whips, and it may be time to retool.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote jmac3 Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 12:14pm
Originally posted by FreeEnterprise FreeEnterprise wrote:

Originally posted by jmac3 jmac3 wrote:

Maybe you should figure out why China can do it for $7,400 and do it that way?

Cry moar. If people can get it cheaper they are going to, it isn't the governments fault.

 
Nice...
 
Well, someday if you actually grow up and live the american dream by owning your own business. Then you will see that China is a communist country that doesn't play by the capitalist rules that America used to live by.
 
So, I can't get my paper for almost free, and get free shipping to the US and have employees that make $.10 per hour...
 
Why don't you learn about business and try and figure out a way to help instead of posting stuff like above?


Stop blaming the government for not making a profit.

I have no intentions of ever owning a business. Ever.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote agentwhale007 Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 12:20pm
I asked my mother - who I am home taking care of today because she just had knee surgery - about your numbers in the printing business.

She worked at a local, family-owned printing office and specialty stationary store for about 18 years, on the business side of things.

I also talked to a friend of hers who, for a very long time, sold bulk paper products to print houses.

They both said that your numbers seem a bit exaggerated, especially having a three percent to four percent profit margin.

-GRANTED-

They both have been out of the business for about 10 years, so take that as you will. The print shop my mom worked for got stripped pretty badly by a dueling Office Max / Office Depots close by that could do the same jobs cheaper. Less quality, but cheaper.




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Post Options Post Options   Thanks (0) Thanks(0)   Quote FreeEnterprise Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 12:41pm
Oh, well, I didn't realize your mom was reading my books...
 
Come on whale... give me a break. Why would I make up numbers?
 
My printing company is one of the largest in Butler county Ohio. I have customers all over the world... We are not a "copy shop" quick printer...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote FreeEnterprise Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 3:24pm
Just to get back on track...
 
Biden says (and obviously Obama agrees since he hasn't distanced himself from the statement)
 
"We have to spend money to keep from going bankrupt."
 
 
Then this
 
Originally posted by Peter Parker Peter Parker wrote:

Yes, sometimes you have to spend to avoid bankruptcy.  Seems pretty obvious.

 
 
It makes me wonder why anyone would take anything you say as credible...
 
That is lunacy, when you are about to go bankrupt, you certainly don't spend MORE. You try and pay off what you owe, and get out of the situation YOU YOURSELF put yourself into.
 
But, I see that personal responsibility doesn't exist in your universe.
 
Remind me to never let you become a customer of mine... Since you will just spend money you have no plan to pay back...
 
Guess that is why they are using IOU's in California now...
 
Good old liberal logic. (Oh, wait, you keep saying your not liberal... Yeah right....)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote slackerr26 Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 3:28pm
if your are going into bankruptcy in your printing business, wouldnt you spend more to try and attract new potential customers that would in turn supply you with enough cash flow to get you out of the red?

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Post Options Post Options   Thanks (0) Thanks(0)   Quote agentwhale007 Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 3:31pm
Personal economic structure =! Government economic structure.

This seems to be the cause of the disconnect between your understanding the current situation and what is actually happening in reality. 
"So when Romney wins in a landslide, what will the liberal media do?"
This Ma**edited**hine Kills **edited**as**edited**ists.




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Post Options Post Options   Thanks (0) Thanks(0)   Quote Benjichang Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 3:36pm
Originally posted by agentwhale007 agentwhale007 wrote:

Personal economic structure =! Government economic structure.

This seems to be the cause of the disconnect between your understanding the current situation and what is actually happening in reality. 
*!=

Just trying to be syntactically correct here.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Peter Parker Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 3:49pm
Originally posted by FreeEnterprise FreeEnterprise wrote:

 
Biden says (and obviously Obama agrees since he hasn't distanced himself from the statement)
 
"We have to spend money to keep from going bankrupt."
 
 
Then this
 
Originally posted by Peter Parker Peter Parker wrote:

Yes, sometimes you have to spend to avoid bankruptcy.  Seems pretty obvious.

 
 
It makes me wonder why anyone would take anything you say as credible...
 
That is lunacy, when you are about to go bankrupt, you certainly don't spend MORE. You try and pay off what you owe, and get out of the situation YOU YOURSELF put yourself into.
 


Not only is it not lunacy, it is - like I said - pretty obvious.

Here is an easy example:  I have a business.  I am currently running at a loss, because the market rate for my product is below my cost of manufacture.  At my current burn rate, I will be bankrupt in six months.

To solve my problem, I spend some money to purchase newer and more efficient.  My cost of manufacture is now well below my sale price, and I now run at a handy profit.

Another:  I have a business.  I just got sued for a very large amount.  If I lose the lawsuit, or fail to defend, I will be bankrupted by the lawsuit.  I therefore spend some money to hire an attorney to fight the lawsuit.  If he is successful, I have avoided bankruptcy.

Another:  I have a business.  I used to be the market leader, but new competition is making better products for less, and I am on a path to bankruptcy.  Therefore spend money to research new products, and spend more on marketing to increase sales of my new products.

The list is literally endless.  The very nature of business consists of spending money to avoid bankruptcy.  If you don't pay your salaries, you eventually go bankrupt.  Don't pay your rent, same thing.  That is what business is.

Obvious.


"E Pluribus Unum" does not mean "Every man for himself".

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Peter Parker Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 4:02pm
Originally posted by FreeEnterprise FreeEnterprise wrote:

Good old liberal logic. (Oh, wait, you keep saying your not liberal... Yeah right....)


Let's see - so far in this thread I have argued in favor of cutting healthcare costs, argued in favor of a market-based solution to environmental issues, I have expressed disdain at your plight in face of stiff competition, I have proposed an energy price hedge/swap structure to alleviate energy costs, and I have suggested that it may be appropriate for your business to fail if the competition is more cost-effective.

You, in the meantime, have blamed your plight on the Chinese and on the US government.

So which one of us is "liberal?"

"E Pluribus Unum" does not mean "Every man for himself".

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Bolt3 Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 4:14pm
Originally posted by agentwhale007 agentwhale007 wrote:

Personal economic structure =! Government economic structure.


Beat me to it.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Darur Quote  Post ReplyReply Direct Link To This Post Posted: 17 July 2009 at 6:45pm
Wait wait wait

FE, are you arguing AGAINST cap and trade? That's about as free market (or Free Enterprise, if you will) and economically sound as it gets when it comes to controlling pollution.

The treehuggers are supposed to be the ones against cap and trade since its trading pollution rights!

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