[HN Gopher] 40% of California's small businesses died in the las...
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       40% of California's small businesses died in the last two years
        
       Author : jger15
       Score  : 16 points
       Date   : 2022-04-05 21:47 UTC (1 hours ago)
        
 (HTM) web link (twitter.com)
 (TXT) w3m dump (twitter.com)
        
       | russdpale wrote:
       | Not surprising, I see so many downtown areas still closed in the
       | SJ area. It's tough to open a business when the people in the
       | area don't have the money to buy your products.
       | 
       | When 2/3rd's of the nation are paycheck to paycheck, even in an
       | affluent area like SJ, if your business is not providing
       | something extremely essential, then you are effectively marketing
       | to just 1/3rd of the population with money.
       | 
       | This tautology that has been spread through out our society that
       | "rich people create jobs" is absurd, demand creates jobs, and
       | decent paychecks create demand. So when paychecks have been
       | stagnant for 40 years, what do people expect is going to happen?
        
         | xxpor wrote:
         | Except this is the opposite of the actual problem. There's
         | plenty of cash floating around right now: it's why inflation is
         | high. We're finally hitting real supply limits. It's the
         | hottest job market in most people's lifetimes.
         | 
         | The fact of the matter is most small businesses are crap
         | businesses. They also abuse their workers in ways big business
         | can't get away with, both illegally and legally. If you work
         | for an employer with <30 employees and they don't provide
         | health insurance, why would you stick around right now?
        
           | russdpale wrote:
           | It's exactly what the problem is. Jobs may be growing because
           | so many were cut due to covid, that doesn't mean it's a
           | healthy economy, because it's not by any stretch. Most
           | created wealth is going to the top 10% of employees.
        
           | dijonman2 wrote:
           | Isn't most of this due to lockdowns and shifting spending to
           | online?
        
           | [deleted]
        
           | lifeplusplus wrote:
           | I thought this inflation was supply driven??
        
         | lifeplusplus wrote:
         | For $7 I used to get 15 good apples now only 5.. feels like a
         | bad joke
        
       | olliej wrote:
       | Small businesses tend to fail in the first two years regardless
       | of circumstance. So let's look at the actual report to get some
       | idea of whether CA's pandemic response played an outsized part:
       | 
       | https://eig.org/news/more-physical-places-of-businesses-open...
       | 
       | In that we see that there are more businesses in CA now than
       | before the pandemic. We see Boise getting a huge influx in
       | workers as people can more easily work remotely now.
        
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       (page generated 2022-04-05 23:01 UTC)