Denny’s, Big Boy, Flap Jack, Family Buffet, Apple Bees; Even Red Lobster, and other restaurants that we enjoy are in trouble. Why? I have been ranting now for quite sometime about how an increase in Minimum Wage is not good for the American economy, and now the slipping of our economy is showing more signs that I am right on the money. The infrastructure that depends on the middle class and lower middle class is starting to show signs of serious financial strain. Even McDonald’s and Burger King are having financial issues and the reason is that those who once supported such establishments are no longer able to support them because of the increased cost of living and increased taxes as well as lower wages.
The more the taxes, the lower the wages, and the more the cost of living increases the worse off the establishments will become. J.C. Penny’s is starting to show signs of strain as they lay off more employees, and cut back on infrastructure repairs. Merchandise is not unpacked, less attention to display’s, clothing left lying about. All signs of business in trouble. restaurant parking lots half empty, as a matter of fact, not long ago I was at one McDonald’s here in town and the entire McDonald’s parking lot was empty, not a customer in sight!
Go ahead Reader, if you think I’ve lost the marbles rattling around in my head, go out for a little joy ride and see for yourself. This not because of the weather. Has nothing to do with deep snow. Has everything to do with more month than money. The little guy, the one that makes the American economy roll, which makes Wall Street hum, the guy who keeps McDonald’s and Burger King on their throne are hurting.
The question is why is it so difficult for Wall St. to figure this out? Easy, because they don’t look at things the way us regular folk do. They get out the calculators, and start throwing structural economic indicators around, and come up with some lame brain reason that something is going awry. The real reason, staring them in the face is ignored, and the obvious escapes their rationale. Because in business there is no rationale. I might add, that in itself is part of the reason we are in the fix that we are in is because Wall St. and Big Business overall suffer from a serious case of common sense and rationale.
The Fix Is In.
If something is not done about this mess, and done quickly, we won’t have to worry about this problem or any other for that matter anything else because the entire economic infrastructure for the United States is going to fall apart. The Middle Class and Lower Middle Class are the ones who support the American Economy. If they suffer a lack of buying power, then the economy heads South. The Rich might get richer, but that is a temporary situation. As the economy falls so too will they. After all they own all the McDonald’s, Burger King, Denny’s, Red Lobster, Applebees stock. They don’t eat there, but every time we drop a twenty they benefit from it.
Go ahead, ask your self…..”When was the last time you saw a hot-shot millionaire chomping down on a Big Mac”? Of course you didn’t, because they don’t go there. As matter of fact, considering the cost of a Big Mac, most of us rarely go there either. And if the Minimum wage increases neither will the rest of us. A minimum wage increase is not the answer to our economic woes.
Lower taxes, moderate realistic wage increases, reinstating the middle class, thus establishing an economy that supports itself, not depending on foreign trade, is the primary answer to our problem. If we lowered taxes by a mere 3%, (Just threw that figure out there), the impact on the buying power of this economy would be stunning. If we reduced income taxes by the same amount, putting more money in the pockets of the consumer, ……need I say more? And yes, in the long run Uncle Sam would benefit as well in more Tax revenue.
Our economy is in real trouble. Tuck this article in your back pocket, and check it out again in a year or so, and you’ll most likely end up saying “This guy was right”.
Well, that my insight on the issue. I look forward to your input as well. Drop a line, and tell me what you think.
Until then…..Have a great day and as usual God Bless America!