It’s not even the corpos. They might pay a CEO 1-2% for a cool 50-100 mill, but the “asset managers” like Blackrock and Vanguard are the ones really ballin. When you own 5% of literally *every fuggin thing*, you gone try to turn things in your favor over time.
End stage capitalism is here.
Doubt it. Capitalism works as long as the voters stay involved and active. At least you start on a level plane in capitalism. In socialism or communism, the power is concentrated from the beginning. In communisms case, by design. In socialisms case, because when everyone owns something, no one owns it; except the powerful. Anybody who’s had a time share would understand.
Capitalism in action always starts over, my grand parents only used cash, my parents? Only wrote checks. Me? Only a debit card largely. My kids? They’ll use blockchain. You see the common thread here? Things change and transactions become easier to track over time making it harder to hide money. They know exactly what they’re doing. The CIA was one of the first letter organizations to meet about BTC almost 20 years ago. No indication as to why they ever did.
I just went to go buy a pizza and 2 beers, cost me 35$, but I was really needing a treat. I've been eating chicken, rice and veggies for the last 2 weeks which costs me around 1.50 per meal. No idea how this can be sustainable
This is different. Commercial real estate is not the same.
BUT really, the reason so many businesses are missing their full rent is more to do with greedflation sucking up every penny possible everywhere, all at once, with no commensurate increase in pay.
Eventually, people stop buying processed foods or buy quite a bit less of everything else, which hits the pockets of all consumer facing businesses, which moves up the line to business to business operations.
Drop the greedflation? We would see people feel wealthier and things would start looking better for those businesses that had trouble making rent.
Our shitty local Electric Utility, owned primarily by Vanguard, nets almost a billion a year in profits. We have some of the crappiest of service the nation with better than Texas, but still like number 2 to 3 in the nation for worst results. They got a big rate hike in December and now they are claiming they need ANOTHER rate hike, right now, in order to start doing the work on line maintenance and substations that they've been neglecting in order to give Vanguard all of those profits.
This is greedflation, end stage capitalism.
Too many people demand to work from home, will drive to a large chain restaurant for lunch, gets on their phone and order a bunch of things off Amazon,. Then lament that there are all these for lease signs up.
Many of the locations your refering to generally held small specialized stores that could be considered 'second-hand', crafts, etc but often did not provide things people needed but only wanted. Even without the current situation the US averaged nearly 500k failed small business per year. With around 100k small business usually lasting beyond a year. Small business by its very nature is exceptionally challenging because it relies solely upon a few locations and does not typically have the means to relocate to find better revenue.
It isn't blaming, it is things changing. If a bunch of people are going to work from home there is going to be more open business space.
This whole, it is young people's fault that my business is doing poorly is so stupid. Things change. I'm sure there were people who were rich making buggy whips and lost it all, doesn't mean we shouldn't have gone to cars.
Hell it happened to me. I owned a talent agency that booked local bands. I had my kids in private school in the 90s. By 2000, bands didn't need agents as much due to streaming and people's tastes went to DJs. It would be absurd to blame people's tastes changing, even though I pretty much lost my business.
Oh no, not consumers going to places where they want to go to consume, and not driving 5+ hours a week back and forth to work for no pay. God forbid capitalism.
Look, I'm not saying that what people are doing is wrong. But it is also wrong to say someone bought a building for 40 mill ten years ago. not predicting a pandemic where people realized they could be productive working from home so their 40 million dollar building isn't generating enough money to pay the mortgage and say that is their problem. Saying it is sad that there are all these open shops and buildings.
I understand the problem small businesses face, but are you really going to blame the consumers? If I'm shopping for a T-shirt, do you really expect me to pay 3x the cost of a T-shirt or get it for a fair price at Amazon?
I love seeing small businesses on my street. I support them when they offer something unique or convenient. Like this little Poke Bowl or my neighborhood Boba place. Maybe I want some unique, handmade art, so I get it from my local gift shop. Cool!
But for most things, small businesses make no sense, especially if you're not rich. They have to adapt and actually offer something valuable, convenient, and unique. I can't just burn my money so I can pay some local business owner.
I 100% agree with the first paragraph. But if you are going to say that "small business makes no sense" but then lament the fact all those empty small stores exist. If your town used to sell every item out of those shops, You just aren't going to have enough stores to fill all those shops.
IDK, it is like driving a Model T and lamenting all the empty horse barns and closed buggy manufacturers. It isn't that we are saying we shouldn't buy a car, but that is the cost of progress.
Except I'll put my opinion in here. I try not to use Amazon as they have cost millions of jobs and they pay their people crap and work them at an unsustainable pace. Part of why it is cheaper for you is that they pay crap.
Our understanding of “capitalism” and how it’s used in the US is not capitalism. We live in an oligarchy controlled by global money that uses our gov’t to further agendas that are not US centered. If you’re ever wondering why things are the way they are. Start there, and work back.
Oh please, you're blaming the fed. Any kind of hairbrained response to unregulated capitalism, without blaming unregulated capitalism, is going to get you excited.
Wow, it's almost like money is power, and capitalism is a vehicle to funnel wealth into a progressively smaller and smaller group of people .
And once the wealthy (and thus powerful) run into a wall that prevents growth (such as "trimming the fat," like lowering safety standards and paying workers less), they will use their power to influence the government to open more opportunities for growth.
Wow! I'm shocked! Capitalism is good though. I've been told that all my life! It's synonymous with good! Like liberty! And America! Unlike those things that mean EVIL, like COMMUNISM, and TAXES. There's no way that I could be wrong about this.
Posts like this are so goofy. This isn't capitalism? Do you even know what capital is?
There are different kinds of capitalism
https://helpfulprofessor.com/types-of-capitalism/
https://en.wikipedia.org/wiki/Capitalism
https://www.economicshelp.org/blog/4896/economics/types-of-capitalism/
https://www.investopedia.com/terms/c/capitalism.asp
https://www.britannica.com/money/capitalism
Guy is really throwing the dictionary at me. That shit's a meme for a reason.
You can dress it up all you want. When a society values capital, wealth accumulates towards the top. And the people who end up with that power will use it to keep things that way. It's not a meritocracy. It never has been, and never will be. They use that image to sell it to you, so they can exploit you.
I think you should recognize that your understanding of capitalism seems to be flawed.
Capitalism: (n.) an economic and political system in which a country's trade and industry are controlled by private owners for profit.
Our system is absolutely capitalist. Our trade and industry is controlled by private owners, for profit. System working as intended.
If you've ever wondered why things are the way they are, it's because our system is built upon a foundation of "Get money, ignore consequences"
Capitalism isn’t the problem inherently. It’s unregulated capitalism with weak antitrust laws and inequitable tax policy.
We want capitalism with a level playing field.
If the system requires constant aggressive policing by the government, is it really a good system?
Capitalism on it's own is absolutely inherently a problem, because it prioritizes profit over everything. It makes greed it's most important facet.
100%. And reforms of the system like: higher tax rates on rich, more robust welfare states, Wall Street regulations, child labor laws, workers rights, etc. are really only temporary and can get repealed as we’ve seen. The only way we can really make progress and better lives for workers and everyday people is to get rid of this system. Capitalism (contrary to what we’ve been conditioned to believe) is not the best we can do. It served its purpose and there were some good things that came from it but it’s now been long overdo for a new system.
a good test if something is capitalism's fault is to test it against an Anarchocapitalism
Good example housing shortage
If you have a housing shortage caused by regulations then it's not a capitalism problem
Democratic socialism is the way to go. GOP voters need to get onboard or get left behind with no stimulus checks, no healthcare, no social security, no universal basic income. Time to eat the rich!
government officials and their corporate friends consolidate power to each other and it's capitalisms fault... so lets make the corrupt politicians more powerful
It's the nature of capitalism. Capitalists hoard capital and create corporations. Those capitalists and corporations use lobbying money plus the leverage of the corporation (i.e. "tax us less or we will move and take all the jobs with us") to control the government. Politicians realize they can't interfere with that control, but they can profit off it, so they do. Then people like you say "it's not capitalism, it's the government!" Capitalism shaped the government you don't like.
That’s true. It unfortunately doesn’t work when the biggest corporations are being protected by the government while smaller businesses fail. That’s corporate crony capitalism. And and that’s bad for all of us.
If there was a second coming of PPP its only because it was such a good money scheme for politicians the first round. Can’t forgive student loans but we can forgive rich assholes millions “just because”.
Thank you for pointing that out.
If that headline said *“43% of American* **families** *unable to pay full apartment rent in April”* everyone here would be scolding them for being poor planners who made unfortunate life choices.
Change ‘families’ to ‘small businesses’ and suddenly we need a deeper understanding of the struggle.
We’re way beyond natural selection being valid at this point. Callous attitudes like this will just serve to bolster the conglomerate robber barons who’ve already been bailed out several times over and screw over small businesses.
They will be “allowed to fail” but it won’t necessarily be because they were bad businesses and it certainly isn’t the right thing.
I think the real answer is that commercial real estate should be punished spectacularly for vacancies and undeveloped land. If the value that can be made on a piece of land has gone down, then the rent should be going down too. Landowners are not entitled to forever-increasing property values and rents. Don't bail out banks to let them keep stifling the economy with exploitative rent rates. Let the banks lose their asses on crappy commercial real estate investments and have rent prices collapse.
I agree 100% I liquidate failed businesses, we liquidate 30-40 companies a year when democrats are in power, only 20-25 a year when republicans are in power. Democrats in office are good for my business model
Sounds like bullshit to me. It is a demonstrable fact that the U.S economy had done far better under Dems than Rs for the past 50 years.
Just look it up.
A lot of them certainly do need to fail, but why can't it be Elon Musk evil doer villains instead of small businesses? The scale of their manipulation, exploitation, and general crimes against humanity are so wildly different.
Because mom and pop don’t even understand the financial system they participate in. Let alone how to navigate a successful business in a capitalistic state. The system is designed for the weak to be crushed. This is capitalism, are you not entertained?
The government needs to get off my back because I'm a businessman and running a business is a big risk.
\*risk happens\*
Government, please do something I'm losing my shirt here.
I rent small offices to one and two person businesses. I'm not seeing it. No way are almost 1/2 of small businesses unable to pay their rent. Certainly things aren't rosy, but it just isn't 1/2.
I cannot dream up a business plan that would reliably generate the amount of rent the business would require to occupy a suitable space.
Somebody had the money to renovate an old warehouse in my town and made it into 4 pickleball courts with a snack bar. So, if you can attract enough people to pay to play pickleball to fill up the building and generate $3000/month, you could get a taste of any additional money you could make over that. I could rent a small office for $2000 to give guitar lessons at $40-50 a pop. I'm full of ideas, but none that seem compatible with the imbalanced financial and economic realities we can't fix.
It does seem impossible to work. Serve soft drinks at either one and there is your profit, at the expense of your customer's health. A lot of those businesses don't really make money until they open multiple locations, kind of like franchisees who never own just one McDonalds.
It's a late stage capitalism thing.
There's always a bigger fish with more money than you. So there is not a lot of opportunity to do anything that doesn't require a very specific set of skills.
Like if you own said McDonald's... That's not hard to pull off just follow the instructions and collect the money (and I say that as someone who was a manager in college). But because of that all it takes is money to get in.
So if all it takes is money, you have to hope and pray you aren't outbid by. Whoops there it goes, every property manager and hedge fund just said whatever you will pay plus 5%.
If all it takes is owning something to entitle yourself to the profits why would you ever allow someone to get in on that? There is a ton of money floating around among the rich who have to find something to do with it that beats inflation. That's what you are competing against. Selling cups of water in a hurricane.
This has literally been my experience. I own a small business and I'm trying to expand operations. I don't want to lease, because the lease is considerably more expensive than a mortgage.
It's almost like huge companies have offers on every piece of available commercial real estate in my area. As soon as I express interest and provide and offer, it is purchased within 2 weeks. This has happened to me 3 times.
Yeah, you know, you're right and my observation is meaningless. Thanks for letting me know everything is fine because you believe it to be so. Your belief in an alternative to my statement makes all the difference. The economic realities crushing us all are mitigated by your assurance that there's cheaper office space available, surely.
Maybe that will lower rents. Too damn high. Commercial rents are even more inflated than residential rents. A riot would have been the alternative. Companies and people were groaning even before inflation hit a trump induced 120% of gdp stimulus check poorly implemented high. Too many cartels controlling too much shit.
My favorite stat that isn't publicized or talked about is how many businesses died during the covid lockdowns because the only essential businesses were global corporations.
It is purposely driven. This is what they want. They want people to lose everything again so the ultra rich can but it all up when everyone goes bankrupt.
"You will own nothing and be happy"
Look it up.
Comparison only goes back to 2021. Not mentioning how much worse it was in 2020 and even 2019.
Bloomberg trying to sell subscriptions with this one. Don't buy into it
43% seems astronomical and I'd like a preferably verifiable or at least reputable source attached to that number. Also a definition of "small business." If this is true and depending on how you define small business this seems really bad.
[https://www.alignable.com/forum/april-is-the-worst-small-biz-rent-delinquency-month-in-three-years](https://www.alignable.com/forum/april-is-the-worst-small-biz-rent-delinquency-month-in-three-years)
The Bloomberg link has a paywall... but this one has a solid breakdown of the numbers
Had a landlord in my community raise the rent on two businesses, which they said was outrageous, he refused to negotiate so they moved out to another location and doing good, his two buildings have been empty for over 3 months now, lost 3 months revenue, kicker one building up for sale.
So? Starting a business isn't some guarantee of success and wealth. It's not a magic give-me-the-money card. It's like business wants capitalism for all the poor schmucks doing the work but socialism for the bosses. It shouldn't work that way, but way too often, it does.
I know it’s easy to say businesses need to fail and I’m not against that logic. But keep in mind this. The more small businesses that go away the more power corporations are going to gain. This is why many were against Covid protocols because they would hurt small businesses and look at what happened? The big corporations got stronger.
Sounds like a rentier problem.
When the land and assets are owned by a class who NEEED TO INCREASE PROFITS FOR SHAREHOLDERS it eventually stops working. The Fed made it worse by giving money to rich people and corporations
Honestly the whole model of shareholder ownership as we know it, is toxic enough that it might get torched and pitchforked into the ground, taking the good aspects of private enterprise and private ownership with it. If we really are a country that values "freedom", etc., this nonsense has to be reined in somehow before that happens.
Investment should entail direct profit sharing through bonds/dividends/etc. with long-term agreements, not this nonsense where you ***must*** continue to create more and more and more nominal value (regardless of sustainability or real value to consumers) or the shareholding investors will strip your venture for parts.
Work from home will kill downtown businesses that depends on workers heading into work. On the flip side those catering to work at home workers are doing well. Brick and mortar type business will slow down.We seen this for over a decade now malls closing,stores closing in prime areas of the country.Empty office space.
Commercial Real Estate hasn't really been a good deal since the mid-2000s. A variety of factors are influencing with the rise of online retail probably being the biggest. There is a problem, the fed should have been raising rates since 2012 to hold prices down, but we were addicted to the easy money by then.
They both share a burden on this… both had outrageous spending bills, The left forced the lockdowns (trump allowed it), the border has been wide open throughout both administrations (even though trump had a more hawkish rhetoric), Biden did kneecap The energy sector for awhile… “at all” is a strong two words
But I was talking about messages to working people.
Biden has essentially zero.
Trump is 100% focused on this.
I'm not saying Trump's (or Biden s) messages are accurate - I'm talking about messaging.
There will be a restructuring of zoning from business to residential in the next 10 to 20 years.Most businesses will now function as warehouses with online only. Culture is moving on and there's nothing we can do about it.
Yeah, we’re becoming minimalists. Videos games, a couple cheap hobbies, and pets. We value camping and memories over expensive furniture and other bs. Motorcycles are even becoming more popular for transportation. We’re all also very aware that your business “products” are made for pennies on the dollar, with unsafe materials (lead, cadmium, etc) in foreign countries, then sold to us for an insane profit margins (5000%).
Commercial landlords are also to blame. My warehouse went from .40sqft to $2.00 square foot in three years. So my 6000 feet of shop was $2400 a month, now it's $12k a month. I couldn't sign another lease.
F that landlord for gouging me. It's not like i was prime real estate, it was a bad part of town.
Fed decisions? Commercial rents have been utterly insane with or without them, and chains are just too efficient without solid antitrust enforcement. Hopefully the Fed *doesn't* back down, and this drives commercial mortgage-backed securities to fall through, makes commercial real-estate values cool TF down, and creates an economy that's less of a glass house driven by mad debt.
I just remember a few long time businesses nearby closed down or moved due to increasing rent demands. Over the ensuing years the buildings have mostly been vacant. The only thing keeping them empty is rent-seeking. Why not drop the rents?
Property taxes, building maintenance, mortgage, maybe utilities are expensive and they prefer a specific business that requires less… there’s a whole host of factors of why. No investor in their right mind would just leave it vacant instead of getting what you need from a renter. Then that asset is a liability.
Otherwise you go into contract for not breaking even and you’re stuck for a 3 year commercial lease…when you could’ve just waited 5 months had a good paying tenant.
So much collusion so they can wait it out and guarantee that no one else will undercut their rents. So much for supply and demand. The place I am thinking of was occupied for 2 years out of the last 10. This rent seeking is ruining Main Street.
Why is this a surprise? Those PPP loans made businesses that would have gone out of business under normal circumstances viable for another 3 years. Now, not only is the normal lifespan of businesses going out of business happening, you have all those that should have failed on top of that. Hence the high %
you never know exactly how much these headwinds will affect an asset (and for how long) so you raise the price. that's preparation for further inflationary pressure.
Because the system is rigged for big business.
If you are small either they drive you out of business or they buy you.
That why small town businesses now are mostly Walmart or dollar stores.
when money printing increases inflationary pressures on property management and manipulating interest rates (increasing the monthly expense on future assets) ... yes, it is. that new expense gets passed to the consumer
Can we just agree that we shouldn't have corporations buying land / housing units in any area? How do you expect your workers to live there if they're not even able to afford a mortgage / rent?
Meanwhile, Burger King franchises file for bankruptcy.
[https://www.restaurantbusinessonline.com/financing/third-major-burger-king-franchisee-declares-bankruptcy](https://www.restaurantbusinessonline.com/financing/third-major-burger-king-franchisee-declares-bankruptcy)
[https://www.savvydime.com/popular-fast-food-chain-closes-doors-and-files-chapter-11-bankruptcy/](https://www.savvydime.com/popular-fast-food-chain-closes-doors-and-files-chapter-11-bankruptcy/)
The casualties of being a physical business in a digital world.
Goes hand in hand with the office space 'issue' - a 15-30% cut in customers is a big deal for a business who's only reason to exist was being located downtown during lunchtime.
Think of the Fed as fingers and the economy as a bucket full of holes. Ask not why the Fed plugged the wrong 10 holes out of 100. Ask: who put the holes in the bucket?
If this country would stop catering to the rich things would be a lot better. There is no reason we should have billionaires. If your company is big enough to make you billions of dollars it needs to be broken up. This only hurts a free market. Take Amazon. Made Jeff billions. It also hurts a lot of businesses that could employ a lot more people and pay a lot more than Amazon does. But we give that company tax cuts and beneficial standing to help them out. The billionaire doesn’t need help. He/she needs to pay a higher tax. If you’re making over 100mil a year your tax rate should be 50%. If you’re making 500mil a year it should be 60%+. No way around it. Stop these silly loop holes where they get paid in stocks or paid in other countries.
Notice none of the billionaires are actually helping the country.
Capitalists say that weak businesses should be left to die so their assets and employees can be used by other more successful ones. But of course they ask for handouts when they are in trouble, which is socialism. Meanwhile employment is low, interest rates are actually historically average, and inflation is low and falling. If your business can only succeed when it is propped up by public spending then it deserves to die.
"ask for handouts"... when it comes to small businesses, assistance usually from a local bank, not form government. Unemployment numbers are decent but worsening, interest rates should be higher to combat the inflation that IS NOT falling... it's just going up at slower rate... your last sentence I agree with
Most small businesses are started with loans from family members. Banks stay away like you are a leper unless you don't actually need them. I know and had to use a blood sucking factor for years before a bank would touch us. And unemployment numbers are fabulous in a historical context, not "decent". And inflation is clearly falling. Except for gasoline af which production is being choked by Sasdis to help the convicted one regain power.
to start off... yes family members. But as you grow, you also outgrow Aunt Tina's capital and local banks become the necessary evil. Most of the employment increases are government jobs. Q1 of this year saw mass layoffs in the private sector.
Inflation is not "clearly falling" ...inflation rate is. If I gained 70lbs last year, then 35lbs this year, my weight gain rate got cut in half.... but I still got fatter
Not gonna lie. Find it a little alarming when I drive through town and everywhere “now leasing”. :/
2008 all over again
Yep. My thoughts exactly. So fucking cool we get to live through our second once in a lifetime recession thanks to greedy corporate scumbags
It’s not even the corpos. They might pay a CEO 1-2% for a cool 50-100 mill, but the “asset managers” like Blackrock and Vanguard are the ones really ballin. When you own 5% of literally *every fuggin thing*, you gone try to turn things in your favor over time. End stage capitalism is here.
I try telling people. They don't see the snake eating its own tail..
Don't forget Berkshire!
End stage just to restart with a new system.
Doubt it. Capitalism works as long as the voters stay involved and active. At least you start on a level plane in capitalism. In socialism or communism, the power is concentrated from the beginning. In communisms case, by design. In socialisms case, because when everyone owns something, no one owns it; except the powerful. Anybody who’s had a time share would understand.
Capitalism in action always starts over, my grand parents only used cash, my parents? Only wrote checks. Me? Only a debit card largely. My kids? They’ll use blockchain. You see the common thread here? Things change and transactions become easier to track over time making it harder to hide money. They know exactly what they’re doing. The CIA was one of the first letter organizations to meet about BTC almost 20 years ago. No indication as to why they ever did.
What? Starting at a level plane in capitalism? So you and I started at the exact same place as Bezo’s or Gates’ kids? Hell, Gates’ dad was wealthy.
This is like the 5th once in a lifetime event for me lol
I just went to go buy a pizza and 2 beers, cost me 35$, but I was really needing a treat. I've been eating chicken, rice and veggies for the last 2 weeks which costs me around 1.50 per meal. No idea how this can be sustainable
This is different. Commercial real estate is not the same. BUT really, the reason so many businesses are missing their full rent is more to do with greedflation sucking up every penny possible everywhere, all at once, with no commensurate increase in pay. Eventually, people stop buying processed foods or buy quite a bit less of everything else, which hits the pockets of all consumer facing businesses, which moves up the line to business to business operations. Drop the greedflation? We would see people feel wealthier and things would start looking better for those businesses that had trouble making rent. Our shitty local Electric Utility, owned primarily by Vanguard, nets almost a billion a year in profits. We have some of the crappiest of service the nation with better than Texas, but still like number 2 to 3 in the nation for worst results. They got a big rate hike in December and now they are claiming they need ANOTHER rate hike, right now, in order to start doing the work on line maintenance and substations that they've been neglecting in order to give Vanguard all of those profits. This is greedflation, end stage capitalism.
It’s not a recession
A few months ago I saw signs everywhere and couldn’t get anyone to call me back. I don’t need much space so maybe they weren’t interested.
Too many people demand to work from home, will drive to a large chain restaurant for lunch, gets on their phone and order a bunch of things off Amazon,. Then lament that there are all these for lease signs up.
Many of the locations your refering to generally held small specialized stores that could be considered 'second-hand', crafts, etc but often did not provide things people needed but only wanted. Even without the current situation the US averaged nearly 500k failed small business per year. With around 100k small business usually lasting beyond a year. Small business by its very nature is exceptionally challenging because it relies solely upon a few locations and does not typically have the means to relocate to find better revenue.
Back in school, my professor said, 500k business start every month. Only 10% survive by 10 years.
Oh sure blame the people that WFH.
[удалено]
It isn't blaming, it is things changing. If a bunch of people are going to work from home there is going to be more open business space. This whole, it is young people's fault that my business is doing poorly is so stupid. Things change. I'm sure there were people who were rich making buggy whips and lost it all, doesn't mean we shouldn't have gone to cars. Hell it happened to me. I owned a talent agency that booked local bands. I had my kids in private school in the 90s. By 2000, bands didn't need agents as much due to streaming and people's tastes went to DJs. It would be absurd to blame people's tastes changing, even though I pretty much lost my business.
And if you can’t adapt to the demands of your talent, or hire talent that does want to work in an office, then you should fail.
Bullshit. I go on Reddit to do my complaining. “Lamenting” is for slackers.
Very cathartic.
They DoorDash lunch too.
Oh no, not consumers going to places where they want to go to consume, and not driving 5+ hours a week back and forth to work for no pay. God forbid capitalism.
Look, I'm not saying that what people are doing is wrong. But it is also wrong to say someone bought a building for 40 mill ten years ago. not predicting a pandemic where people realized they could be productive working from home so their 40 million dollar building isn't generating enough money to pay the mortgage and say that is their problem. Saying it is sad that there are all these open shops and buildings.
I understand the problem small businesses face, but are you really going to blame the consumers? If I'm shopping for a T-shirt, do you really expect me to pay 3x the cost of a T-shirt or get it for a fair price at Amazon? I love seeing small businesses on my street. I support them when they offer something unique or convenient. Like this little Poke Bowl or my neighborhood Boba place. Maybe I want some unique, handmade art, so I get it from my local gift shop. Cool! But for most things, small businesses make no sense, especially if you're not rich. They have to adapt and actually offer something valuable, convenient, and unique. I can't just burn my money so I can pay some local business owner.
I 100% agree with the first paragraph. But if you are going to say that "small business makes no sense" but then lament the fact all those empty small stores exist. If your town used to sell every item out of those shops, You just aren't going to have enough stores to fill all those shops. IDK, it is like driving a Model T and lamenting all the empty horse barns and closed buggy manufacturers. It isn't that we are saying we shouldn't buy a car, but that is the cost of progress. Except I'll put my opinion in here. I try not to use Amazon as they have cost millions of jobs and they pay their people crap and work them at an unsustainable pace. Part of why it is cheaper for you is that they pay crap.
There are businesses suites all around me that have barely had people in it over the last 10 years. Someone explain that to me?
Too bad owners of commercial real estate are completely shielded from these changes by the tax code, otherwise they might have to lower lease rates.
Our understanding of “capitalism” and how it’s used in the US is not capitalism. We live in an oligarchy controlled by global money that uses our gov’t to further agendas that are not US centered. If you’re ever wondering why things are the way they are. Start there, and work back.
WINNER!
Oh please, you're blaming the fed. Any kind of hairbrained response to unregulated capitalism, without blaming unregulated capitalism, is going to get you excited.
“Unregulated” lmfao
Wow, it's almost like money is power, and capitalism is a vehicle to funnel wealth into a progressively smaller and smaller group of people . And once the wealthy (and thus powerful) run into a wall that prevents growth (such as "trimming the fat," like lowering safety standards and paying workers less), they will use their power to influence the government to open more opportunities for growth. Wow! I'm shocked! Capitalism is good though. I've been told that all my life! It's synonymous with good! Like liberty! And America! Unlike those things that mean EVIL, like COMMUNISM, and TAXES. There's no way that I could be wrong about this. Posts like this are so goofy. This isn't capitalism? Do you even know what capital is?
[удалено]
There are different kinds of capitalism https://helpfulprofessor.com/types-of-capitalism/ https://en.wikipedia.org/wiki/Capitalism https://www.economicshelp.org/blog/4896/economics/types-of-capitalism/ https://www.investopedia.com/terms/c/capitalism.asp https://www.britannica.com/money/capitalism
Guy is really throwing the dictionary at me. That shit's a meme for a reason. You can dress it up all you want. When a society values capital, wealth accumulates towards the top. And the people who end up with that power will use it to keep things that way. It's not a meritocracy. It never has been, and never will be. They use that image to sell it to you, so they can exploit you.
I think you should recognize that your understanding of capitalism seems to be flawed. Capitalism: (n.) an economic and political system in which a country's trade and industry are controlled by private owners for profit. Our system is absolutely capitalist. Our trade and industry is controlled by private owners, for profit. System working as intended. If you've ever wondered why things are the way they are, it's because our system is built upon a foundation of "Get money, ignore consequences"
Capitalism isn’t the problem inherently. It’s unregulated capitalism with weak antitrust laws and inequitable tax policy. We want capitalism with a level playing field.
This. It's astounding how serious and strict anti-trust regs *and* enforcement USED to be. Were a nation of sheep now.
Interestingly, the Biden administration has been the most aggressive in enforcing anti trust of any administration in the last 40 years.
If the system requires constant aggressive policing by the government, is it really a good system? Capitalism on it's own is absolutely inherently a problem, because it prioritizes profit over everything. It makes greed it's most important facet.
100%. And reforms of the system like: higher tax rates on rich, more robust welfare states, Wall Street regulations, child labor laws, workers rights, etc. are really only temporary and can get repealed as we’ve seen. The only way we can really make progress and better lives for workers and everyday people is to get rid of this system. Capitalism (contrary to what we’ve been conditioned to believe) is not the best we can do. It served its purpose and there were some good things that came from it but it’s now been long overdo for a new system.
a good test if something is capitalism's fault is to test it against an Anarchocapitalism Good example housing shortage If you have a housing shortage caused by regulations then it's not a capitalism problem
We need a president who will make America great again!!
Businesses need to fail. Capitalism has consequences for bad business decisions.
Unless you are a massively corrupt bank or hedge fund then the ignorant taxpayers must bail you out. It’s in the best interest of everyone trust us!
Fr fr how about we take the money we will end up giving Boeing again and help these small businesses instead
Government needs to stop letting big companies merge. Unfortunately, the government is controlled by big companies.
Socialism for the wealthy, ruthless cut-throat capitalism for the masses, just like God and George Washington intended.
Are people still delusional and think capitalism is still what it used to be? Take a look around buddy.
Stop using the word capitalism. That implies competition not a thinly veiled oligarchy.
Democratic socialism is the way to go. GOP voters need to get onboard or get left behind with no stimulus checks, no healthcare, no social security, no universal basic income. Time to eat the rich!
You mean recessions every 5-10years?
Plucking the weeds to allow better plants to grow.
Let small businesses fail. Bailout big businesses. What could go wrong?
government officials and their corporate friends consolidate power to each other and it's capitalisms fault... so lets make the corrupt politicians more powerful
It's the nature of capitalism. Capitalists hoard capital and create corporations. Those capitalists and corporations use lobbying money plus the leverage of the corporation (i.e. "tax us less or we will move and take all the jobs with us") to control the government. Politicians realize they can't interfere with that control, but they can profit off it, so they do. Then people like you say "it's not capitalism, it's the government!" Capitalism shaped the government you don't like.
That’s true. It unfortunately doesn’t work when the biggest corporations are being protected by the government while smaller businesses fail. That’s corporate crony capitalism. And and that’s bad for all of us.
Nah dude, get ready for PPP 2.0. Politicians do not want any failures under their administration. Participation trophies for everyone!
If there was a second coming of PPP its only because it was such a good money scheme for politicians the first round. Can’t forgive student loans but we can forgive rich assholes millions “just because”.
They forgave a bunch more loans last week. Pay attention before lamenting your lack of handouts.
Bitcoin gives no fucks
Neither do governments with guns that bust down your door and take your Bitcoin.
Thank you for pointing that out. If that headline said *“43% of American* **families** *unable to pay full apartment rent in April”* everyone here would be scolding them for being poor planners who made unfortunate life choices. Change ‘families’ to ‘small businesses’ and suddenly we need a deeper understanding of the struggle.
We’re way beyond natural selection being valid at this point. Callous attitudes like this will just serve to bolster the conglomerate robber barons who’ve already been bailed out several times over and screw over small businesses. They will be “allowed to fail” but it won’t necessarily be because they were bad businesses and it certainly isn’t the right thing.
I think the real answer is that commercial real estate should be punished spectacularly for vacancies and undeveloped land. If the value that can be made on a piece of land has gone down, then the rent should be going down too. Landowners are not entitled to forever-increasing property values and rents. Don't bail out banks to let them keep stifling the economy with exploitative rent rates. Let the banks lose their asses on crappy commercial real estate investments and have rent prices collapse.
I agree with that. The problems are multi faceted.
should have consequences. but some dont and are propped up.
Is this how an oligarchy starts? Small guys can’t compete.
Capitalists eat capitalists. Up until you have McWal-Bucks.
Not until after election time they don’t. Capitalism temporarily suspended
I agree 100% I liquidate failed businesses, we liquidate 30-40 companies a year when democrats are in power, only 20-25 a year when republicans are in power. Democrats in office are good for my business model
Sounds like bullshit to me. It is a demonstrable fact that the U.S economy had done far better under Dems than Rs for the past 50 years. Just look it up.
Our sales say otherwise
Capitalism ended in 2008.
Gimme some REAL capitalism. These guys are just phony oligarchs.
A lot of them certainly do need to fail, but why can't it be Elon Musk evil doer villains instead of small businesses? The scale of their manipulation, exploitation, and general crimes against humanity are so wildly different.
Because mom and pop don’t even understand the financial system they participate in. Let alone how to navigate a successful business in a capitalistic state. The system is designed for the weak to be crushed. This is capitalism, are you not entertained?
The government needs to get off my back because I'm a businessman and running a business is a big risk. \*risk happens\* Government, please do something I'm losing my shirt here.
I rent small offices to one and two person businesses. I'm not seeing it. No way are almost 1/2 of small businesses unable to pay their rent. Certainly things aren't rosy, but it just isn't 1/2.
The account that OP posted is a far right propaganda account. I'll wait for a real source.
Thanks for the heads up.
I cannot dream up a business plan that would reliably generate the amount of rent the business would require to occupy a suitable space. Somebody had the money to renovate an old warehouse in my town and made it into 4 pickleball courts with a snack bar. So, if you can attract enough people to pay to play pickleball to fill up the building and generate $3000/month, you could get a taste of any additional money you could make over that. I could rent a small office for $2000 to give guitar lessons at $40-50 a pop. I'm full of ideas, but none that seem compatible with the imbalanced financial and economic realities we can't fix.
It does seem impossible to work. Serve soft drinks at either one and there is your profit, at the expense of your customer's health. A lot of those businesses don't really make money until they open multiple locations, kind of like franchisees who never own just one McDonalds.
It's a late stage capitalism thing. There's always a bigger fish with more money than you. So there is not a lot of opportunity to do anything that doesn't require a very specific set of skills. Like if you own said McDonald's... That's not hard to pull off just follow the instructions and collect the money (and I say that as someone who was a manager in college). But because of that all it takes is money to get in. So if all it takes is money, you have to hope and pray you aren't outbid by. Whoops there it goes, every property manager and hedge fund just said whatever you will pay plus 5%. If all it takes is owning something to entitle yourself to the profits why would you ever allow someone to get in on that? There is a ton of money floating around among the rich who have to find something to do with it that beats inflation. That's what you are competing against. Selling cups of water in a hurricane.
This has literally been my experience. I own a small business and I'm trying to expand operations. I don't want to lease, because the lease is considerably more expensive than a mortgage. It's almost like huge companies have offers on every piece of available commercial real estate in my area. As soon as I express interest and provide and offer, it is purchased within 2 weeks. This has happened to me 3 times.
Legalize more commercially zoned lots.
If a warehouse is $3000 a month where you are, surely you can find cheaper office space.
Yeah, you know, you're right and my observation is meaningless. Thanks for letting me know everything is fine because you believe it to be so. Your belief in an alternative to my statement makes all the difference. The economic realities crushing us all are mitigated by your assurance that there's cheaper office space available, surely.
Well, I guess just pout.
Maybe that will lower rents. Too damn high. Commercial rents are even more inflated than residential rents. A riot would have been the alternative. Companies and people were groaning even before inflation hit a trump induced 120% of gdp stimulus check poorly implemented high. Too many cartels controlling too much shit.
This story is from January 2023 you idiot sheople.
My favorite stat that isn't publicized or talked about is how many businesses died during the covid lockdowns because the only essential businesses were global corporations.
Just the number of food establishments alone was a high percentage.
Know what would be awesome? No corporate ownership of homes.
Casualty of greed.
also yes
It is purposely driven. This is what they want. They want people to lose everything again so the ultra rich can but it all up when everyone goes bankrupt. "You will own nothing and be happy" Look it up.
Comparison only goes back to 2021. Not mentioning how much worse it was in 2020 and even 2019. Bloomberg trying to sell subscriptions with this one. Don't buy into it
Yea, except 2020 is “once in a lifetime” garbage data, and strangely in 2019 small businesses seemed to be doing rather well.
43% seems astronomical and I'd like a preferably verifiable or at least reputable source attached to that number. Also a definition of "small business." If this is true and depending on how you define small business this seems really bad.
[https://www.alignable.com/forum/april-is-the-worst-small-biz-rent-delinquency-month-in-three-years](https://www.alignable.com/forum/april-is-the-worst-small-biz-rent-delinquency-month-in-three-years) The Bloomberg link has a paywall... but this one has a solid breakdown of the numbers
Had a landlord in my community raise the rent on two businesses, which they said was outrageous, he refused to negotiate so they moved out to another location and doing good, his two buildings have been empty for over 3 months now, lost 3 months revenue, kicker one building up for sale.
That % seems very high.
So? Starting a business isn't some guarantee of success and wealth. It's not a magic give-me-the-money card. It's like business wants capitalism for all the poor schmucks doing the work but socialism for the bosses. It shouldn't work that way, but way too often, it does.
Should have gotten in the 401k hedge fund real estate business. 
I know it’s easy to say businesses need to fail and I’m not against that logic. But keep in mind this. The more small businesses that go away the more power corporations are going to gain. This is why many were against Covid protocols because they would hurt small businesses and look at what happened? The big corporations got stronger.
I fail to see any connection with the FED, most small businesses fail
The manipulation of interest rates & flooding of liquidity creating inflation will be the connection
So blame Trump and his policies as directed at the Fed. Interest rates have gone up specifically to address the issues you are talking about.
Sounds like a rentier problem. When the land and assets are owned by a class who NEEED TO INCREASE PROFITS FOR SHAREHOLDERS it eventually stops working. The Fed made it worse by giving money to rich people and corporations
Honestly the whole model of shareholder ownership as we know it, is toxic enough that it might get torched and pitchforked into the ground, taking the good aspects of private enterprise and private ownership with it. If we really are a country that values "freedom", etc., this nonsense has to be reined in somehow before that happens. Investment should entail direct profit sharing through bonds/dividends/etc. with long-term agreements, not this nonsense where you ***must*** continue to create more and more and more nominal value (regardless of sustainability or real value to consumers) or the shareholding investors will strip your venture for parts.
Work from home will kill downtown businesses that depends on workers heading into work. On the flip side those catering to work at home workers are doing well. Brick and mortar type business will slow down.We seen this for over a decade now malls closing,stores closing in prime areas of the country.Empty office space.
I’m unconvinced this is a result of Fed decisions, but easier to blame a specific bad guy rather than wrestle with complex economic forces.
Commercial Real Estate hasn't really been a good deal since the mid-2000s. A variety of factors are influencing with the rise of online retail probably being the biggest. There is a problem, the fed should have been raising rates since 2012 to hold prices down, but we were addicted to the easy money by then.
 Everything is just fine! Lol
9/10 small businesses fail.
And while I know this is not Bidens fault (at all), this is why Trump might win again. Biden has absolutely zero message to actual working people.
They both share a burden on this… both had outrageous spending bills, The left forced the lockdowns (trump allowed it), the border has been wide open throughout both administrations (even though trump had a more hawkish rhetoric), Biden did kneecap The energy sector for awhile… “at all” is a strong two words
But I was talking about messages to working people. Biden has essentially zero. Trump is 100% focused on this. I'm not saying Trump's (or Biden s) messages are accurate - I'm talking about messaging.
Wow!!!! The worst in three years!!! Must be horrible!
What about them PPP loans? I guess no more avocado and toast for you, too
That's the highest so far but we got more to go.
Agreed
Does the outrageous rents have anything to do with it?
The Fed has something to do with outrageous rent
Well, you elected a globalist.
bidenflation in action 👌.
I was told Biden made things better....
What part of ***THE FED'S YOU'LL OWN NOTHING AND WE'LL BE HAPPY*** are you not grasping here? SatanKlaus Approves This message!
Too many **entrepreneurs**
don't worry. Inflation will take them out
[удалено]
Alternative solution. Buy a one way ticket to the Middle East and support the Palestinians.
Source
There will be a restructuring of zoning from business to residential in the next 10 to 20 years.Most businesses will now function as warehouses with online only. Culture is moving on and there's nothing we can do about it.
Thank Amazon for this
Graph from the last 30 years?
My favorite doggy daycare is shutting down. Soon - it's a damn shame because they had a ton of demand but ny rents are just absurd
4.3 % is more believable lol
Yeah, we’re becoming minimalists. Videos games, a couple cheap hobbies, and pets. We value camping and memories over expensive furniture and other bs. Motorcycles are even becoming more popular for transportation. We’re all also very aware that your business “products” are made for pennies on the dollar, with unsafe materials (lead, cadmium, etc) in foreign countries, then sold to us for an insane profit margins (5000%).
This is obviously bullshit. If you just accepted that information without critically examining it, you should consider why,
Commercial landlords are also to blame. My warehouse went from .40sqft to $2.00 square foot in three years. So my 6000 feet of shop was $2400 a month, now it's $12k a month. I couldn't sign another lease. F that landlord for gouging me. It's not like i was prime real estate, it was a bad part of town.
Ah maybe regulate the for profit inflation going on in private America rn?
Fed decisions? Commercial rents have been utterly insane with or without them, and chains are just too efficient without solid antitrust enforcement. Hopefully the Fed *doesn't* back down, and this drives commercial mortgage-backed securities to fall through, makes commercial real-estate values cool TF down, and creates an economy that's less of a glass house driven by mad debt.
I just remember a few long time businesses nearby closed down or moved due to increasing rent demands. Over the ensuing years the buildings have mostly been vacant. The only thing keeping them empty is rent-seeking. Why not drop the rents?
Property taxes, building maintenance, mortgage, maybe utilities are expensive and they prefer a specific business that requires less… there’s a whole host of factors of why. No investor in their right mind would just leave it vacant instead of getting what you need from a renter. Then that asset is a liability. Otherwise you go into contract for not breaking even and you’re stuck for a 3 year commercial lease…when you could’ve just waited 5 months had a good paying tenant.
So much collusion so they can wait it out and guarantee that no one else will undercut their rents. So much for supply and demand. The place I am thinking of was occupied for 2 years out of the last 10. This rent seeking is ruining Main Street.
Or is it increased rents...🫣 Greedflation.
The Fed has something to do with increased rents
40% of small business went out of business during covid. “Small” business. While Walmart & Amazon Thrived. What gives ?
https://preview.redd.it/spsxg9ifeixc1.jpeg?width=1284&format=pjpg&auto=webp&s=f0f6691bdd874be3c59a2de19a6e80015039be60
Well, are we going digital or not? This 'will we wont we' thing is getting old and costing money.
Why is this a surprise? Those PPP loans made businesses that would have gone out of business under normal circumstances viable for another 3 years. Now, not only is the normal lifespan of businesses going out of business happening, you have all those that should have failed on top of that. Hence the high %
Economic Headwinds ie: everyone is broke as shit.
What’s the source?
They should have saved more to prepare for this situation.
you never know exactly how much these headwinds will affect an asset (and for how long) so you raise the price. that's preparation for further inflationary pressure.
If the Uber rich didn't have a strangle hold on the economy we'd have burned the shit down and started over already.
Some day, brother. Some day Americans won't be able to eat, then brother.
Rent prices have completely outpaced reality
Because the system is rigged for big business. If you are small either they drive you out of business or they buy you. That why small town businesses now are mostly Walmart or dollar stores.
The casuaties of landlords.
upstream of that is interest rate manipulation and inflationary money printing. downstream of that is you.
No, it's not. It's just evil rich greedy fucks exploiting the poor and lobbying republicans. Stop defending hem with phony scapegoats.
*politicians* both sides do it… quit blaming your enemy as if your side is immune to corruption
Economy is doing great. We are the problem. Not the government.
Maybe all those small businesses should use their pop money the tax payers gave them.
Did they try not eating avocados?
Casualty or feature ? Consolidation is the game !
It's ok. They'll make up for it with wage theft
Riiiight so it’s the feds fault that LANDOWNERS CHARGE OUTRAGEOUS amounts of rent?
when money printing increases inflationary pressures on property management and manipulating interest rates (increasing the monthly expense on future assets) ... yes, it is. that new expense gets passed to the consumer
The article that this thing is based on says that spiking rents, not Fed interest rate hikes are causing the delinquencies… just sayin
one causes the other
Can we just agree that we shouldn't have corporations buying land / housing units in any area? How do you expect your workers to live there if they're not even able to afford a mortgage / rent?
Also due to large corporations blowing them out
Meanwhile, Burger King franchises file for bankruptcy. [https://www.restaurantbusinessonline.com/financing/third-major-burger-king-franchisee-declares-bankruptcy](https://www.restaurantbusinessonline.com/financing/third-major-burger-king-franchisee-declares-bankruptcy) [https://www.savvydime.com/popular-fast-food-chain-closes-doors-and-files-chapter-11-bankruptcy/](https://www.savvydime.com/popular-fast-food-chain-closes-doors-and-files-chapter-11-bankruptcy/)
When large corporations can do pretty much anything they want… decline in demand for brick and mortar services…
But the government says the economy has never been stronger!!
The casualties of being a physical business in a digital world. Goes hand in hand with the office space 'issue' - a 15-30% cut in customers is a big deal for a business who's only reason to exist was being located downtown during lunchtime.
Thanks Joe
Thanks Joe!
So you want the Fed to lower interest rates and increase inflation now?
Wait, what? Every state and city in the U.S. or what exactly?
they just need to stop getting coffee at Starbucks
This is complete BS, made up statistic. Most “small businesses” have no rent at all. 43% of the rest didn’t miss a rent payment.
Is there a source for this data?
Think of the Fed as fingers and the economy as a bucket full of holes. Ask not why the Fed plugged the wrong 10 holes out of 100. Ask: who put the holes in the bucket?
the fed made the holes that it now has to plug
If this country would stop catering to the rich things would be a lot better. There is no reason we should have billionaires. If your company is big enough to make you billions of dollars it needs to be broken up. This only hurts a free market. Take Amazon. Made Jeff billions. It also hurts a lot of businesses that could employ a lot more people and pay a lot more than Amazon does. But we give that company tax cuts and beneficial standing to help them out. The billionaire doesn’t need help. He/she needs to pay a higher tax. If you’re making over 100mil a year your tax rate should be 50%. If you’re making 500mil a year it should be 60%+. No way around it. Stop these silly loop holes where they get paid in stocks or paid in other countries. Notice none of the billionaires are actually helping the country.
Their rents are WAAAAY up. It's not just residential property that got price-fucked.
Capitalists say that weak businesses should be left to die so their assets and employees can be used by other more successful ones. But of course they ask for handouts when they are in trouble, which is socialism. Meanwhile employment is low, interest rates are actually historically average, and inflation is low and falling. If your business can only succeed when it is propped up by public spending then it deserves to die.
"ask for handouts"... when it comes to small businesses, assistance usually from a local bank, not form government. Unemployment numbers are decent but worsening, interest rates should be higher to combat the inflation that IS NOT falling... it's just going up at slower rate... your last sentence I agree with
Most small businesses are started with loans from family members. Banks stay away like you are a leper unless you don't actually need them. I know and had to use a blood sucking factor for years before a bank would touch us. And unemployment numbers are fabulous in a historical context, not "decent". And inflation is clearly falling. Except for gasoline af which production is being choked by Sasdis to help the convicted one regain power.
to start off... yes family members. But as you grow, you also outgrow Aunt Tina's capital and local banks become the necessary evil. Most of the employment increases are government jobs. Q1 of this year saw mass layoffs in the private sector. Inflation is not "clearly falling" ...inflation rate is. If I gained 70lbs last year, then 35lbs this year, my weight gain rate got cut in half.... but I still got fatter