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McArthur’s Bakery owner David McArthur on the rising costs of running a business in this economy.
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Report out by the Federal Reserve says the Great Recession has caused the typical American families network to plummet by 39%.
To put this in context that is about the same as it was twenty years ago in 1990 TO and not surprisingly the middle class has borne the brunt of this financial hit.
My next guest doesn't need to read any report he knows all this is true he lives every day yeah.
Hi there is okay macarthur's bakery in saint Louis Missouri and he joins me now.
Dave thanks so much for joining us tonight we we appreciate and heavily -- So you listen with your story I mean you still have a job because you right here on business -- you have certainly seen this change in your cost of doing business right.
Most orderly and own your own business is no such thing as job security anymore but.
No you know what we've seen is as lonely you know I've we've consulates in have to reinvent ourselves because our customers.
As -- continually say they have less and less money to spend the cost of -- going up.
While salaries are not going up everything around them so you're not worth as last -- -- cost you more aware of the cost you more to keep it cost you more put fuel in your vehicle.
Hans sold it for the retail markets what ever they are there's colossal loss of that available to individuals like results.
Yeah and we're looking at some of your cross right here on the screen the price of sugar going up 70% -- 40% green oil 32%.
-- 29% and all that has meant that your profit has basically been nothing how has that impacted your lifestyle.
Molybdenum -- lifestyle could you keep trying to do you have to increase your margins -- stale or your your overall output to stay alive because your margins shrank.
Yeah and when the economy has shrunk down.
Try doing creature customer base is tough to do you can't expand you can't go to the bank to get money to open a new location.
Because the banks won't do it -- and you know we've been on that no small businesses have just survived through.
We've been able to have our depreciation and amortization to write -- -- But because we've -- losses at the end of the year but -- for companies like ourselves -- haven't invested in your business and -- for five years.
Could you haven't had the money there so you're you're you're right officer now nothing so what's the future gonna hold for us.
Let's all pray about it.
Yet it and I mean at the same time obviously that means that if you can't pass those prices on -- customer.
You're not taking home much of an income what is it meant you personally in terms of your home and your savings.
-- One of those -- people that it was a very unfortunate and actually it was before it was back at the -- but I went through one of those foreclosures -- three years ago so law are filed and find out how well the banks were willing to work with individuals in my case.
They were happy to lower my risk interest rate for 3% for three months doing me a paper work.
So that's welcome trying to in my view power banks took India took the money and -- And -- we wonder why the middle class is feeling it take how many.
Thousands hundreds of thousands of people like myself when you -- your net -- is down 45%.
When you lose your home.
Test your net -- was down 45%.
Now you've got in already got a nice garage you to pay in -- on somewhere with some furniture and a but there's no brick and mortar left -- what is the solution.
We -- -- -- -- a major change -- government on both sides of the -- -- my solution we need government to get out of the way and we need to bring energy prices down I have continually said this economy will never recover.
Until energy is back in the 250 a gallon range.
It in places like the midwest where we drive to work I know many many people whose fuel payments -- greater than their mortgage payments.
How can we recover how -- this economy come back.
When your fuel payments higher than your mortgage payment there were closing coal fired plants we're seeing energy prices go up and up and up.
So our cost of living is more than sucking up one every year wage increase was people -- -- going back to work for going back for less money.
The cost a living is higher.
This economy cannot recover and that's but you know I wonder there's this road -- to socialism you -- you -- little wonder how to get the 99% mad at the 1%.
And -- apartment about the differences and keep taken away from the 99%.
You know -- not conspiracy theorist but -- you know what can the president -- this administration be data out of touch that he makes the comment that the middle class is doing okay.
David McArthur thank you so much for coming up because it's important to us to put a face on these numbers that we always -- -- that we're always talking about.
And you do that -- -- and we really appreciate your time and wishing to battle appreciate -- -- my my phone is always gonna -- clearly subject aren't we well.
Thank you so my.
