Category Archives: Business

Helium leak detector repaired and refurbished in Frankenmuth

2 Replies

To those who know Frankenmuth, MI, it is generally as “Little Bavaria,” the German-themed vacation town of quaint houses and shops; of cheese, wurst, beer, Christmas ornaments, and Oom Pa Pa bands. I know it in a slightly different way as the only town to get your helium leak detector repaired. There are at least three shops in Frankenmuth that repair helium leak detectors (or make new specialty versions), and this is the source of the reference leaks that most qualified shops use. So I was here yesterday and today, both for the World-class snow sculpture contest, and to get my helium leak detector looked at. It was acting funny; it turns out there was a leak in the leak detector plus a bad potentiometer on a switchover circuit. The leak is already fixed, and I should have it back in my shop next week (Wednesday).

Snow-sculpting in Frankenmuth 2013; I was there to have my helium leak detector fixed.

Snow-sculpting in Frankenmuth 2013; I was there to have my helium leak detector fixed.

veeco He-leak detector at REB Research.

Theodore Roosevelt jumps fence, rides moose

One of my favorite presidents, a liberal Republican, a friend to immigrants and  the poor, but not opposed to prosperity either. Though some thought he might be crazy, none thought he was a wuss, and none messed with him or the USA when he was in office. Yes, that’s the president riding a moose, jumping a fence, and camping on a cliff with John Muir.

theodore-roosevelt-mooseTheodore Roosevelt Jumps Fence on Horsetheodore-roosevelt-yosemite

 

January 16, 2013 R.E. Buxbaum. If you liked this, you might want my insights into a famous incident where Teddy Roosevelt got shot on the way to giving a speech. Instead of treatment, he gave the 2 hour speech and survived. Why did he do this? How did he survive it?

Healthcare thoughts

1 Reply

I offer healthcare to keep workers working for me — it’s an employee retention benefit that helps cover the cost of training. As it is now, if they quit, covered workers will have to pay for their own heathcare or find another company that’s willing to pay for it.

Perhaps that’s mean to think this way, but it’s really my only means to keep people from jumping shop at the first higher-paying opportunity. Anyway, that’s what I do/did. When congress gave free healthcare to everyone as of this year, they not only raised my taxes, and my company taxes, they also removed a key tool I have for keeping people on the job. In return, I suppose my healthcare fees are supposed to go down, but I have no faith they will, in part because I worked for the government and have no faith in their ability to be efficient or fast moving; in part because my ability to pay for healthcare comes from my ability to keep trained workers.

Though I’m not too happy about the change, I imagine (hope) that my employees are happy. Their  taxes will go up a bit, but they will be more free to jump ship at will. I imagine that the unemployed are especially thrilled, though I don’t know why that was not implemented through an increase in Medicare and Medicaid. In a sense I’m surprised it took congress this long to give everyone “free” healthcare without forcing them to work for it.

Michigan tax wrongs righted

1 Reply

This month, at last, the Michigan legislature began to take seriously the job of correcting some tax wrongs that needed correcting for years. The most important change: they decreased the tax on business property (only by 10% but it’s a start) and shifted the burden to a tax on business profit.

The personal property tax was paid on any equipment, inventory, or supplies that a business kept in-house. No matter if their were sales or none, a tax was due so long as a business had equipment or unsold inventory. Even in years where there were no profits or sales, money was due to the state — a tax on your dreams of somehow making a go of things. Aside from its complexity of valuing your unused supplies and inventory, the tax guaranteed that struggling businesses would fail — immediately. The governor (Granholm – glad she’s gone) claimed that taxing unused equipment and inventory protected the state coffers from the ups and downs of the business cycle, but the state was is far better shape than a struggling business when it came to the cost of borrowing. Besides, I’m not sure she was doing Michigan any favors by destroying businesses that were barely hanging on.

Governor Granholm (thank G-d she’s gone) gave out the money she collected to the right sort of people, her friends, and to targeted businesses that she liked: e.g. movie makers who made money-losing, dystopian films and left as soon as the checks cashed. The current governor, Snyder claims his aim is to eliminate the business property tax in 10 years, 10% at a time. I hope, we’ll see.

Another tax that’s now gone, at last, is the 0.8% on transactions between businesses. It wasn’t an unfair tax like the property tax, but was annoying to keep track of. What a mess. Keep up the good work, lads. Now if only they can do something about Detroit’s uncommonly high minimum wage.

Robert Buxbaum, November 20, 2012

Detroit economics and the minimum wage

12 Replies

A cause of Detroit’s financial problems, it seems to me, is that Detroit has an uncommonly high minimum wage, $13.75/hr for all employees in any company that contracts with the city and does not provide free health care; or $10.50/hr for companies that provide healthcare. This minimum, called a living wage, is about double the state minimum wage of $7.40.

Although the city is financially bankrupt, the city can not hire janitors and pay less than this, nor hire accountants from a company that pays its janitors less than this. Besides the burden on Detroit’s budget, this puts a burden on its unemployment system. Many in Detroit don’t possess the education or skills to justify jobs at this wage. This high minimum wage effectively cuts them from the bottom rung of jobs at these companies — jobs at the bottom of the ladder of success. Many businesses find innovative ways around the law, using corruption and bribes to skirt enforcement, if the recent trials of the mayor are any indication, but a system of corruption is not good for the city.

As these wages are far above standard, most employed workers for the city get their jobs by corruption and connections, and most everyone knows they got their jobs this way rather than skill. As a result, workers have no incentive to improve at their job. In a corrupt system like this, there is no likelihood that  a raise would come with improved performance.

The justification for the living wage is the cost to support a family of 4 or 5, but Detroit is a much cheaper place to live than most, and not all workers are supporting families of 4 or 5. It therefore makes little sense to force all potential workers to refuse entry-level employment at $8.00/hour, a wage that would allow a single, motivated individual a decent living and a chance to climb as his/her needs and skills grew. Instead of promoting hard work and merit, this ordinance fosters corruption and cronyism; it makes it expensive for the city to hire contractors, makes it hard for workers to get their first jobs, and removes the benefits that normally come with improved skills. It’s a disaster, I suspect, and a reason the city is bankrupt.

Dr. Robert E. Buxbaum is a self-employed curmudgeon who tries to speak the truth as he sees it.