On 21 Apr 2014
The Alienation of Work,
The slower the owner's reaction to declining prices, the more damage it is to his own bottom line, just like people who lost their shirt not selling quickly enough during stock market crashes.
Yep. No one ever went broke from taking profits too early.
The government however is raising rent in this bad economic condition, as your previous article pointed out unintentionally.
I agree. The problem in NJ is that every service imaginable happens on the smallest level possible. Fire, School, even Health and Safety inspections, are all done on the localest level, hence the high taxes. California is at the opposite extreme: the sales and income tax is too damn high, and the property tax too damn low. Actually, NJ sucks at all 3. Probably because it seems to me Realwhores make up most of the Freeholders (local Council).
What is the bigger burden on entrepreneurs, the failure of the market to adjust prices, or the increased property tax?
Let's take two hypothetical cases:
$55/Sqft/Year * 1200 Sqft = $66,000
No "Tax" Increase
$40/Sq Ft/Year * 1200 sq ft = $48,000
$48,000 + ($400*12) = $52,800
I'm being generous and assuming the $400 extra a month is all going to tax increases and is not at least partially a landlord's excuse to exploit a recession-resistant business to the fullest (or squeeze out a tenant for a better paying customer).
For me, I'll take the latter and enjoy my extra ~$13,000.