By Dan Harkey, Business & Finance consultant
Large and small businesses are by the millions becoming insolvent and filing insolvency actions or bankruptcy. Going out of business has become the norm. Industries such as retailing, dining, air travel, hospitality, entertainment, etc. are purposely and systematically being destroyed. Family, social units and wealth creation are being systematically destroyed. Industry participants which attempt to restart are under newly enforced artificial restrictions that diminish the possibility of generating enough sales to pay operating expenses even before considering profit and profit motive. All businesses that are prohibited by government regulation from making a profit to feed the entrepreneur’s family will fail. Capitalist businesses through a free market approach have flourished for decades but now find themselves financially strangled by government’s onerous regulations.
Residential and commercial real estate will suffer greatly because homeowners and tenants cannot pay rent or debt service. Owners of income property and retail centers that rely on generating income cannot pay expenses and debt service. Consumers are prohibited from purchasing desired goods and services while government stands as a barrier to the practical solutions necessary to restart the economic engine. Both commercial and residential vacancies will skyrocket over the next 12 to 24 months, creating a wave of defaults.
READ MORE: http://danharkey.com/lost-in-a-totalitarian-mask-querade/
