Anonymous
Anonymous asked in Politics & GovernmentPolitics · 7 years ago

Most small business owners are in debt, where did the myth come from that they are better at managing money?

Every time a politician bashes the incompetence of government at managing the budget and pandering to the small business owners by saying, you're better at managing your own money than the government is, I have to laugh. It is not true, the vast majority of small business owners are terrible money managers and spend far more than they actually take in. Let's let this myth die.

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  • Anonymous
    7 years ago

    Can you name me a few small businesses that have a debt four times more then their income?

    Generally, if a company has debt more then twice their income they are ripe for bankruptcy.

    The US government brings in about about $3.8 Trillion each year in revenues, but has a debt of $16 Trillion

    For comparison, GM (at the time they file bankruptcy) had revenues over $200 Billion but only $84 Billion in debt. They had no choice but file BK.

    Small business does not have a credit card with no cap on it. Once their credit runs out they go out of business. Therefore they actually watch where they spend their money and have something called a "budget". Something that libs don't understand.

  • Anonymous
    7 years ago

    Some Right winger that majored in European Art History started it

    Those of us who are Libs w/ business degrees know that what you say is 100% correct

    In fact the evil big government deliberately created the Small Business Administration to address the problems that you mentioned

  • James
    Lv 7
    7 years ago

    Unless a small business is owned by a bigger one. They need a line of credit to operate. If owned by a bigger one as a tax write off. They must be debt free to lose money. And then only so much.

  • Anonymous
    7 years ago

    There is nothing inherently wrong with borrowing money to grow a business. The whole idea of a commercial loan, traditionally, is to purchase inventory, and the loan self-liquidates as sales are made.

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  • 7 years ago

    You have obviously never ran a business, we can't spend more than we bring in.

  • Anonymous
    7 years ago

    Ok so all small business owners suck so they should be taxed more is that what you are saying? You have shitforbrains.

  • 7 years ago

    so raising taxes on them is a bad idea? i agree

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