sub-prime small business

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Complexity is intentionally built into our economic system

I, personally, wonder if maybe complexity isn't one of the most important 'tools' of tyranny available to our government... Please note that I say 'government' and not democrats. They're all about the same. In the pockets of special interests...

I personally think it's those "progressives" that are truly the problem. Those 'elite' progressives who consider themselves so much more intelligent than the 'common folk'. The rich, greedy, power hungry, corrupt members of our government. At least it is 'supposed' to be 'our' government... According to some old document called the Constitution of the United States of America...

Anyway, I digress...

It seems to me that complexity with law and compliance is an essential part of the modern bubble blowing 'process'.

Below is a small sample of some of the complexity involved...

A few of the different 'types' of corporations/partnerships

An overview of different types of Corporations including
General corporation, S corp and LLCs

Please see also...

C corp
Proprietorship
Partnership

See further details on...

Balance sheets

Profit and loss statement

Taxes...

Please visit IRS.gov just to get an idea of all the complexities involved in making tax decisions in this country.

Small business appears to be just one more attempt by government to inflate bubbles... It seems to me the whole idea of small business in America has been hijacked to represent nothing more than a scam, ponzi to encourage the borrowing of money from our friends the banks.

It seems that small business in America is based on debt and loans. That a majority of business' in this country are over leveraged. That they don't seem to be able to run their business without permanent access to easy credit.

All small business has to have access to accounting services to handle all the complexities involved.

But those accountants are good at what they do. They earn their money.

It is their job, it seems to me, to understand how to 'game' the system. I mean the complexity in tax law is astonishing. Even down right contradictory at times...

A lot of the law involved with different types of corporations allow the proprietor to to just use money shifting on the books to represent true business activity. People can take out a personal loan, put it into the business, have the business make payments to a second corporation who in turn might make payments on the original loan to the first corporation. It's weird crap to me. Just moving a bunch of money around from here to there all in an attempt to reduce your exposure to taxation...

It seems like you can take on a lot of personal debt by being something called an 'entrepreneur'. But that if you do choose to do that it seems you might be trapped in a system of complexity and legalities from which there is no escape. Locked into a system that seems to be designed to insure indebtedness to banks and income for other financial institutions.

Is that an anti-capitalist thing to say? I don't think so. I just think that, somehow, by design, we have allowed most everything to become far too complex. All a bunch of stupid man made 'rules' and 'laws' made by a group of people that almost none of us trust to begin with...

Anyway, I guess my point is that, to me, the sub-prime loan 'issue' with housing that has devastated our economy looks an awful lot like how many small business' in this country operate.

I'm weird I guess, old fashioned maybe. I don't really believe in small business that requires constant access to easy credit to survive. To me it just seems to be a contrived way to pump ever more money into the bubble that was once the banking system.

Debt has been institutionalized in this country. It exists at all levels of society. From the poor in society who have received loans for homes that they neither deserved nor understood. To small business whose main function seems to have become to keep your head above water by forever borrowing more and more money. To state and federal governments who have been dramatically overspending for decades now.

It seems nearly everyone in our society requires debt and forever easy credit just to get by...

Is this what inflation has done for us? The same inflation that is 'good for us' because it shows a growing economy? What a lie...

It seems like a lot of our small businnes owners may show a profit every month while at the same time forever accumilating more and more debt.

There is just something inherently illogical about the whole thing that really bugs me...

Greg