Ericka Redic Show

Ericka Redic Show #5: can small business catch a break in Vermont?

In Episode #5 of the Ericka Redic Show, Vermont’s newest video news host interviews Shawn Shouldice to learn how the pandemic and government regulation have combined to hurt small business in Vermont – and what can be done to make survival more likely.

Categories: Ericka Redic Show

4 replies »

  1. How about doing the obvious, cut taxes ! Let Vermont businesses and Vermonters decide for ourselves how, what, and where, money should be spent to help the most.

  2. For the small businesses left the only answer is to lower taxes,drop burdensome regulations,and open up Vermont,enough is enough!! Our Constitution guarantees us the right to life liberty,and the pursuit of happiness,regardless of the flu or not!!Freedom is better than tyranny!!

  3. Economics 101: Minimum wage boosting advocates ignore its ripple effect.

    If the minimum wage increases from $11 per hour to $15 per hour, those already earning that amount (because they’re more productive than the typical minimum wage earner) will demand a commensurate raise in pay. And when those already earning $15 per hour receive, for example, only half the commensurate wage increase, to let’s say, $17 per hour, those workers already earning $17 per hour will – you guessed it – demand their commensurate wage increase. So, you see where this is heading.

    Even when subsequent wage increases, for those already earning more than $15 per hour, is only 10% of the percentage of this proposed raising of the minimum wage, the overall impact on the economy is exponential. And if anyone takes the time to do a simple spreadsheet modeling of this circumstance, it is more than evident that, in actual dollars, the net effect of the minimum wage increase, over time, actually decreases the earning power for that very group of people its intended to benefit.

    This is one of the reasons Vermont’s poverty rate is increasing faster than, for example, New Hampshire’s.
    The other reasons raising the minimum wage is detrimental, of course, are that it has the immediate effect of limiting jobs, AND increasing demand on social services such as low-income free lunches, welfare, food stamp and rent subsidy costs.

    Arbitrarily throwing money at a problem, as opposed to letting free markets determine the supply demand curve of goods and services, always leads to these distortions that worsen economic vibrancy. And those who disagree are typically the same people who are skimming (i.e. redistributing) a portion of this funny money for their own purposes.

    The government, for example, is the primary benefactor of wage increases over the short term, with increased income and sales tax revenues – at least until the markets adjust – when the government again, inevitably, promotes yet another round of minimum wage increases because wage polarity continues to get worse.
    After all, if you run a spreadsheet model of this circumstance, it becomes clear that the best way to help low-income workers is to ‘lower’ everyone’s pay by a commensurate percentage. High income earners will have a larger real dollar wage decrease than low-income earners, thereby decreasing the wage polarity. But doing so is politically suicidal, as it should be.

    More importantly, the models clearly show that the best way to adjust wages is to let the free market do its thing.

  4. so if they legalize prostitution, will that be considered a small business??!!! It is a good thing the Department of Health and CDC has guidelines for “safe” sex during the COVID pandemonium…so ludicrous!! Thanks for the program, Erica!!

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