Small merchants are people, and people vary in their intelligence/savvyness and may have other issues like poor credit or high chargebacks that they usually forget to mention. Some people roll the cost of the terminal into a higher fee as well.
I helped out a friend who owns a deli when he took over from his parents. His dad saw cash as a way to avoid taxation and had some awful payment processor where they paid a high fee and was renting a POTS based terminal - $60/mo to Verizon and $30/mo for the terminal.
Now he keeps one set of books, and raised his average sale by about 10%. Their catering business, which drives profits, are up significantly with online ordering through the POS.
Ditto with a non-profit I was on the board of. Pushing Venmo and Square for donations increased donations by like 30% and reduced shrink at fundraisers. Anyone who claims they can’t afford a 3% fee is going out of business anyway.
POTUS pretty much told you this is what you are getting. His great admiration for Andrew Jackson pretty much says it all. Jackson was the poster child for bullshit populism, patronage and corruption.
It’s all economic, pride and ego. Once you hit a certain amount of income, the marginal cost of children seems too much. It’s not a big deal when you have nothing.
Maintaining a middle/upper middle class lifestyle for your kids is expensive. Few people can afford daycare, 5x college tuitions, etc. Extended families tend to be spread out and social networks aren’t what they once were.
Dudes online blather about paternity, divorce, etc. all nonsense and all irrelevant. Bad marriages and divorce are not new, although religious and conservative people try to imply that. The entire movement for prohibition in the early 20th century was driven by absent fathers who would drink their wages away and let the children starve in some hovel.
The only thing that’s “new” is women have the ability to choose birth control.
You work for a company that’s part of the Trump, Ellison, Kutchner orbit of corruption.
Y’all are developing amazing technology. But accept reality and drop whatever sense of moral righteousness you’re carrying here. Not because some asshole on the internet says so, but for your own mental health.
You’re reading into it like the federal government is an honest broker.
It’s just corruption. Google is a bigger fish. OpenAI is attached to Oracle and Larry Ellison, who is a Trump collaborator. Kushner is also in investor.
Anthropic is the weakest animal in the herd. They also started a campaign targeting OpenAI, which is capturing hearts and minds (everyone is talking about Claude Code), and really pissed off Sam Altman.
The engineers are a big part of the problem and drive regulations that featherbed themselves.
I got into a fight with my city over nonexistent crosswalks (the adhesive line strips wore off) near my home in an area where drivers have a hard time realizing where pedestrians cross due to a unique road setup.
You can’t just paint lines. The project ended up costing about $1.2M and required a traffic study, some stupid ADA assessment and accommodation that frankly any layperson could have figured out, and a complete streets assessment.
Basically, they sent out a few engineering technicians who make $20/hr, billed out 80 hours at $120 to count cars and people, and printed some boilerplate analysis (@$250/hr). The end result was they painted new crosswalks and added textured curb surfaces for ADA compliance, which allowed for the use of recovery act funds.
I love a good rant, but you just have no idea what you’re talking about. First, real engineers (the kind with, education and experience requirements and personal liability for their work) have labor markups that are maybe 2 to 3 times raw rate. I don’t know if 6X margins are normal for people who collect a check to “maintain” a finished product. Second, any civil engineer will tell you that complete streets compliance for federal funding is a waste of everyone’s time. Engineers didn’t come up with that, congressmen elected by people like you came up with that. Third, the only reason they did all of that study is because the people you voted for wanted to use money that was tax farmed from me instead of your city funds. They could have just sent out a road crew. You could also cut the check yourself. Finally marked crosswalks alter pedestrian behavior, but not driver behavior. Marking crosswalks where there is high traffic and no controls like a signal with a dedicated pedestrian phase are actually more dangerous than no markings at all. I don’t expect you to know that, but that’s why you should hire people like me and not try to do this yourself.
In fairness, I should have said "engineering companies" vs. engineers. Like any scenario, the engineers themselves have to work in the scope they are allowed to. Those firms absolutely lobbied our state legislature for all sorts of things that generate make-work revenue for them. Most of the proof of work is farmed off to low dollar employees.
In this particular scenario, it's an usual configuration that can't be changed for a bunch of reasons. There are functional, adequate controls that were added about 15 years ago and were not altered by the project I'm thinking about. The crosswalks and lane markings are essential because drivers tend to stop at the wrong place.
While we may have been getting rope-a-doped, our neighborhood association was willing to contribute a pretty significant amount of money to have the city do the work. Our position was that it was becoming a dangerous intersection with significant pedestrian traffic. We were told it was illegal for the city dpw to do so without the study work.
A late addition to your comment: the reason for all the "wasteful" red tape was that the right demanded all the documentation to prove that the underlying activity itself was not wasteful...thus imposing extra costs on everything that resulted in is several magnitudes more waste.
Even in cheaper areas without earthquake or hurricane construction codes, minimum $/ft is like $250 (for lowest quality components) and realistically more like $400.
Inflation for materials and labor makes any build incredibly expensive.
That’s absolutely untrue. The only reason companies track depreciation as they do is because it allows them to defer taxation. Public works projects are not paid out of current cash.
Strong Towns makes good arguments about certain things and are critical in a reasonable way of how civil engineering organizations rate the need for more civil engineering works. But the budget discussion makes zero sense.
The biggest expenses for county, city, town, village government are: schools, police & fire, Medicaid share in states that do that, and employee retirement and health. A small/midsize city spends 60% of its budget on police.
Capital projects are capitalized with bonds. Governments have the lowest bond expenses due to tax exemptions. Roadwork is not done in a cash basis. It’s bonded for 10-30 years depending on the job.
Yes, the problem is that our cities are already leveraged up to their eyeballs. At some point, the actual humans buying those bonds start becoming skeptical of the city’s ability to pay them back.
LA currently has about a billion dollars of outstanding general obligation bonds (edit: but that does not include all their future liabilities). They're still rated AA, but I presume that is because the credit writing agencies understand how many untapped revenue streams LA has, but again, those will require unpalatable political change. You can’t keep refinancing forever.
Philadelphia, Miami, and Chicago are getting close to junk bond status, and when that happens, the option to refinance starts evaporating very quickly.
I also think LA will be fine in the long run, I just think that their tax structure will force significant changes. The tax base is able to cover the cities liabilities, it's just that the residents don't want to pay those extra taxes, and don't want to change in ways that let other people pay them.
The city has a billion dollar deficit right now. Trivial for residents to afford ($83 per person), but difficult to actually implement politically.
Wikipedia says the GDP of the LA metro is ~1.5T. I think they could handle 1B in bonds. If they choose not to, it's not because it's some impossibility. Certainly not because roads are impossibly expensive.
I said general obligation bonds, not general liabilities. These technically are what makes this discussion so difficult.
My point is that much of what the city can tax has little to do with the city's GDP. Either the landscape of the city will have to change or the current taxation paradigm will have to change.
What they can tax does have to do with the GDP though. If they have a 1B deficit, they need to somehow tax <0.1% of activity (or cut services), whether through property tax, income tax, sales tax, corporate tax, or some other scheme. What they don't need to do is radically increase density, and since almost all of the costs scale with population, not area, density wouldn't even help that much (or might hurt if it leads to a lower percentage of net contributors).
Again, putting $1B in some perspective, the LA Unified School District budget (which is county-level, so not directly comparable to the city, but anyway) is just under $19B. Maybe someone else can ballpark how much of that is associated to the city. Or look the other things that scale with population: police, medical, waste, social programs, etc.
Again, they have $1B in the current deficit. The have $1B in outstanding bonds. They have myriad other outstanding obligations that won't show up on the balance sheet for 20+ years.
Okay, but relative to their resources, that's nothing. So they can just pay for those things. It's like worrying about a water heater replacement when you make well into six figures. At a macro level, it is obvious that the suburban model itself is not somehow financially unsustainable.
The city budget is $14B. So they need to make a ~7% adjustment somehow, which amounts to less than a 1% tweak to the local economy. That's not a broken system. It's not a ponzi scheme. It just means they should pay their bills and maybe reduce some waste. You yourself said it's trivial for residents to afford to just pay for the deficit.
I helped out a friend who owns a deli when he took over from his parents. His dad saw cash as a way to avoid taxation and had some awful payment processor where they paid a high fee and was renting a POTS based terminal - $60/mo to Verizon and $30/mo for the terminal.
Now he keeps one set of books, and raised his average sale by about 10%. Their catering business, which drives profits, are up significantly with online ordering through the POS.
Ditto with a non-profit I was on the board of. Pushing Venmo and Square for donations increased donations by like 30% and reduced shrink at fundraisers. Anyone who claims they can’t afford a 3% fee is going out of business anyway.
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