One of the best parts of our newsletter is getting feedback from towers and truckers. Our last newsletter featured an article about the economy and how it is affecting everyone. Listed below is the original article:
"It is no secret that the cost of everything seems to be going up. This includes staples like, groceries, gas, clothes, and of course, trucks. In our industry, the government approved, technology marvels that we call new trucks, cost money. Likewise, many fleets and owner operators have margins that are tightening. This brings up an important question.
What do we do to make it more affordable for truck owners to upgrade their equipment?
The quick answer is to charge more to ship products, and lower the price of trucks. I wish it were that easy. If we raise prices to consumers, the market is likely to get worse for everyone. If we the lower the price of trucks, you will get trucks that will never pass inspection. There is a potential solution, and if you are still reading at this point, it is probably not what you think.
The key is a vast increase in national employment with salaries at least over $70,000
Wait…don’t stop reading, here is how we can do this. Offer tax breaks to companies for employing a set number of new employees at $70,000 or above for a preset number of years. A large portion of the money would come back to the government in taxes, but the money being paid in salaries would take a joyride through these places:
1. First consumers would buy cars again, pay off debt, make mortgage payments, eat out, take vacations, buy new homes, pay more for homes, so you can sell your existing home and get out from under your mortgage.
2. Wall Street would take notice as the market has a sudden infusion of cash.
3. Stocks go up, allowing baby boomers to retire because the investments in their 401k’s increased enough to give them income again (wow, what a concept).
4. The companies that supply grocery stores, car dealerships, host vacations, build machines, and build homes need goods and services shipped.
5. Consumers are making more so you can charge more. They are also receiving a steady income, meaning they more likely to keep buying regularly.
6. Goods HAVE to be shipped. Consumers are making more and you can charge more.
7. Margins for companies, including truck companies, go up.
8. The margins are there to buy that new truck(go to www.ectts.com when your ready).
9. The debt repayment is allowing finance companies to offer better interest terms to finance that new truck( again, follow instructions in parenthesis at the end of #8).
10. Part of the salary money goes back to the government in taxes BUT
11. New tax revenue is coming into the government from restaurants, stores, manufacturers, transportation companies, and of course, the revenue your making on your new carhauler or truck
I know…this is a little outlandish, even for me. But at least it is a new workable solution. The current plan is not working. We need to try something different. The Republication lifetime strategy to give tax breaks to companies with no stipulation does not mean they will hire American workers. Most of those tax break gains will just flow into the pockets of people overseas. Likewise, Democrats trying to pick the next successful company, or ‘investing’ billions of dollars that we do not have is not going to work either. Regardless of what we try, millions of Americans are going to have to have the opportunity to go back to work for wages that don’t leave them at the poverty level. If we solve this, paying for new equipment will be an afterthought."
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Bill Wishard of A To Z Towing was nice enough to send in another well written perspective on this article:
"The thought of 70,000 jobs is a start but in the towing and trucking industries the problem we have is the third parties dictating to us what we can charge to get the work. It is happening in the medical field, trucking field, body shops, and probably many others. You can not have insurance companies,brokers,and the government tell you this what we will pay take it or leave it. The guy down the street says he can do it cheaper so we will use him. There is always the guy down the street. When insurance companies dictate what they feel is a proper charge we have no chance to prosper. We can't dictate to them what we can afford for insurance. If you can't afford the rate you go out of business. Example of what is happening. A client calls a motor club and asks for a tow. The club says your memership is expired but we can help you. It will cost you 85.00. Customer agrees and pays. The tower gets called and is paid 40.00 to do the work. Now you ask the motor club or an insurance company for a raise and they can't do it . They are taking our profit and we are being enslaved by them. Enough said. Bill"
-Bill Wishard JR
A To Z Towing
Thank you Bill. Your points were well thought out and I appreciate you sending them
-ECTTS
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