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WILE E. COYOTE, CAMPGROUND BUSINESSMAN SUPER GENIUS

In GREEDY CAPITALIST COMPLAINS ABOUT UNEMPLOYMENT INSURANCE EXPENSE AND QUITS HIS BUSINESS, I reveal that a former Ventura County businessman who failed to make a go of business in Ventura County using seasonal labor had his labor expense subsidized by taxpayers for as long as he operated in Ventura County. 

His lackeys didn't like learning about reality as such didn't fit into their hyper-indoctrination mindset, so they endeavored to beg for my attention.


Entrepreneurs must face reality if they want the gains of profit. The Coyote suffers from incompetency. The Coyote faces the same price for labor as all other businessmen in Ventura County who compete for workers of such skills. His competitors aren't merely camp ground operators, though in this county, that would be the State (McGrath State Beach), the operator of Lake Casitas and a few slumlord homeless RV parks. His competitors are all those also bidding for that kind of unskilled labor.


So the Coyote faces the same labor constraint as all other employers in Ventura County who can not run their operations without that same kind of labor. Thus, it is other factors for which the Coyote hasn't demonstrated competency that has led him to exit the field.
If the Coyote is pure entrepreneur, so what? He had nothing at risk. Only the capitalist who lends is the one who faces loss and thus is the only one who puts at-risk anything.
If the Coyote is an entrepreneur-capitalist, then he has been experiencing an unforeseen loss by change or what Mangolt described as a technical loss while more prudent businessmen know such as a loss of non-occurrence. The tide of travel turns from California seashores to Colorado mountains. So the Coyote, if as capitalist, should exit the field and put his remaining capital, if any, to a better and higher use.
Clearly, there are too many campgrounds in Ventura County and not enough winning bidders of demand for camping slots willing to bid prices high enough for the Coyote to break even.
The facts remain about UI and the Coyote. For every year he operated and laid off workers while also turning a gain of profit, the Coyote earned that gain on the backs of taxpayers who never collected UI but paid taxes for it and other businessmen who never laid off workers but paid taxes for UI. 

The Coyote has a legit gripe about Agent Smiths shaking him down for permits and the like. However, he lacks any grounds for complaint about UI as likely without it, he would have been out of business long ago.
As well, all should question the skills of the Coyote as a businessman. The excessive lawsuits from factions of employees reveals the Coyote's incompetence regarding communication, persuasion and group dynamics.
The Coyote can't gain profit because the sum of his sales on prices set by winning bidders for campground slots fail to exceed his cost of production.
The worst bit is that taxpayers have been subsidizing the Coyote's cost of production for all the years he operated his business in Ventura County as taxpayers forced to pay taxes or face imprisonment subsidized the Coyote's seasonal payroll, which let him pay a price of wages below the actual market rate absent intervention.

What they need is a lesson in business and commercial economics. 




1) Direct labor costs never are included as overhead in cost accounting. It is debatable that UI is overhead, as it is a variable cost dependent solely on actual fluctuating payroll. No one considers labor costs as overhead. The rate for UI is fixed by states' legislators, but the outlay is variable to the outlay for direct labor employed in any payroll period.
Typical overhead would be fixed cost outlays for a lease and insurance, which would be any costs inescapable regardless of chosen production methods and materials.
2) A wage is a price and conforms to the one, true, infrangible and only law of trade, the Law of Prices. The Law of Prices holds the winning bids of purchase and sale in the face of what is on offer sets the price.
Employers are sellers of money (these days credit) who buy skills through time, which we call labor, or the "poor man's capital".
Workers are buyers of money / credit, which we call wages and are sellers of expressed skills through time.
In most job markets, inter-employer competition has employers engage in English auctions for workers, while inter-worker competition has workers engage in Dutch auctions for jobs.
Where the winning bidders of employers and winning bidders of work seekers intersect, that is the clearing price, which, when it involves work, we call it a wage.
Both workers and employers get constrained by the Axiom of Profit — the sum of sales must at least equal the cost of production, otherwise the producer goes to ruin.
In short, employers can bid up for workers only where what gets sold as the product from the workers exactly equals the cost to produce it. Likewise, workers can bid down for work only where what they get paid equals what it costs them to live.
There are too many no-skilled Americans Dutch-bidding themselves and not enough employers who need workers bad enough to train those workers or provide them capital precisely because there is too much regulation like minimum wage laws, workers' comp, social security; and too much welfare giving unearned buying power, both which interfere in the fair, just working of markets.
2) All producers get constrained by the great Axiom of Profit. The Axiom of Profit holds the sum of sales must at least equal the cost of production or the producer goes to ruin.
Even if the winning bids for labor take up the budget of a firm, if that firm can not earn sales exceeding costs, whatever that cost profile is, that firm goes to ruin.
3) The Coyote has been gaining unearned profits for all the years he operated his business, beggaring other businessmen as well as workers. In the absence of UI, the Coyote would have faced lower a profit margin on much higher expenses as his cost of doing business no longer would be subsidized by firms that pay UI but don't layoff workers and by workers who pay UI but don't collect UI, as well as subsidized by all taxpayers who pay for welfare subsidies to his income-qualifying workers likely who collect food stamps (SNAP) and Section 8 (subsidized housing).
It's too much to ask of many who succumb to peer pressure and the effects of hyper-indoctrination to see the emperor isn't wearing any clothes. People hate truth, even more so when it gets in the way of the fantasies of their minds. Cognitive dissonance is such an amusing thing to watch in others.
Any pro free-market, pro-capitalism, pro society of property, pro individualist would point out the hypocrisy of those like the Coyote who fail to make it on their own merits and cry when the rules change, rules that once favored their inefficient ways.


Some of us want to see an end to UI, which is the only fair move for workers and efficiency-driven, competitive employers so that weaklings like the Coyote never take the field of competition.
Big governmentalists are the same, it doesn't matter whether a Democrat leftist or Republican rightist.