[Speed Gibson,
Wednesday July 6, 2005 at 10:56pm]
Emergency! Fence breached in Quadrant Four!
Mitch Berg had some fun with the latest jeremiad in Wednesday's Minneapolis Star Tribune about the idled workers. My favorite line was this:
Who knew such a program existed? You get to borrow money to fix a fence in this state? Just because you are allegedly in the day-care business?
I say allegedly because the truth is, if your day-care business needs to borrow money for such small matters as repairing a fence, you were never really in business to begin with. This is what's called "under-capitalization" meaning you have no reserves to pay the unexpected costs that pop up from time to time in any business. Presumably, without this "non-essential" loan program, you would go out of business - and you should! Even if you get this loan, another "emergency" will soon appear and wipe you out anyway. I wonder what percentage of those loans get repaid.
Another way to look at this is that the State is propping up those who can't really run such a business. This creates unfair competition for those who can. No wonder as Mitch and the commenters note, the "non-essential" State day-care referral service has mostly worthless leads.
FYI, as Bob Davis on KSTP noted this morning, a wide shot on a local TV news program last night showed that Merrideth Herried was the only idled worker on the Capitol steps.
Also FYI, the Strib ran 50 inches in two page one articles on the plight of the workers and the state services idled by this impasse. Dane Smith and Patricia Lopez collaborated for only 21 inches of Legislative coverage, basically a sidebar on the jump page.
Likewise, day-care providers who need emergency loans - for such things as a broken fence or a malfunctioning air conditioner - are out of luck. That loan program isn't up and running, either.
Who knew such a program existed? You get to borrow money to fix a fence in this state? Just because you are allegedly in the day-care business?
I say allegedly because the truth is, if your day-care business needs to borrow money for such small matters as repairing a fence, you were never really in business to begin with. This is what's called "under-capitalization" meaning you have no reserves to pay the unexpected costs that pop up from time to time in any business. Presumably, without this "non-essential" loan program, you would go out of business - and you should! Even if you get this loan, another "emergency" will soon appear and wipe you out anyway. I wonder what percentage of those loans get repaid.
Another way to look at this is that the State is propping up those who can't really run such a business. This creates unfair competition for those who can. No wonder as Mitch and the commenters note, the "non-essential" State day-care referral service has mostly worthless leads.
FYI, as Bob Davis on KSTP noted this morning, a wide shot on a local TV news program last night showed that Merrideth Herried was the only idled worker on the Capitol steps.
Also FYI, the Strib ran 50 inches in two page one articles on the plight of the workers and the state services idled by this impasse. Dane Smith and Patricia Lopez collaborated for only 21 inches of Legislative coverage, basically a sidebar on the jump page.