FFA, what could possibly go wrong with this scheme? I have in the past seen agents/brokers start up with Group Plans cutting rates in half, collecting premiums and when the claims started rolling in, there was no insurance, no one to pay and an empty office and the crooks were somewhere in Switzerland. A few were caught and convicted, but a lot of people got hurt.
yes Agent, I can see where this would go south in a hurry. If done properly, it could take off.
To hear of someone taking on such an endeavor, I wish them well. You and I (among others) went through start up. We know the pain on a much smaller scale.
Yes FFA. We took the risks of start up because we had markets lined up and they knew we were good at what we did. I was lucky that I bought the agency from the previous owner where I was a Producer for many years. Much of the business was mine anyway. My partner and I did have a relatively small loan for a down payment and then we paid the former owner off based on monthly commission income on his business. It worked well, but I wouldn’t have wanted to start an agency from scratch with no customer base. That is an entirely different scenario and the pressure is enormous.
Luck you agent. I started scratch with a stack of apps and a pat on the back. I bet me against the world and 20+ years later still standing.
September 16, 2013 at 8:32 am
Ron says:
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Agent,
Shouldn’t we be applauding these job creators instead of demeaning them?
Do I know if they will be successful? No, but at least they are trying to be innovative to take advantage of an opportunity. Isn’t that what the risk takers and job creators, that the right says we need to support, do?
Or is the problem that, if these start ups are successful, the ACA may have a more positive outcome than you wanted?
Please try to be more consistent with your message.
In addition, EVERY business was once a start up. Even though you purchased an existing book, someone else had to take the risk and start it from nothing.
Have a little faith once in a while.
September 16, 2013 at 12:15 pm
FFA says:
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Some one needs to play Devils Advocate…
September 16, 2013 at 12:53 pm
Ron says:
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FFA,
I believe you are the most fair and honest person on this blog. Even though we disagree sometimes, I respect you more than anyone else on either side of the argument.
September 16, 2013 at 2:10 pm
FFA says:
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Ron, Life is way too short to spend it being pissed off…
September 13, 2013 at 3:35 pm
reader says:
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Very interesting. Take a look at the CEO’s of these co-ops..lawyers? Hmmmm!
Ron, your reading comprehension leads a lot to be desired. Did you notice that these outfits are using government funds to start up? Haven’t we had enough of that with the Green Energy crowd who blows through their loans and promptly go belly up within a year or two? FFA, Sargeant & I had no funding from the government to get us started until we could build our book. By the way, yes I bought a small book from the prior owner of the agency, but the majority of the total book was what I had sold and serviced. He was well compensated for his book when he retired. The agency is roughly twice as big now as it was when I bought it and that took a lot of hard work and want to. What have you done except to be an employee of someone else? How many sacrifices have you made or risks you have taken to succeed?
My reading comprehension? You must be kidding. What did I write that showed I did not comprehend what was written in the article?
You said in a previous comment, “Do any of them (Progressive Democrats) ever consider a tax break to give to Small Business so jobs can be created?” So now you are against government assistance, that is what tax breaks are, to create jobs? I only ask that you be consistent. Should the government provide assistance to create jobs or not? Or do they need to go through you first for approval?
Where did I question anything about your hard work or risks in order to build a successful business? You are way too sensitive.
I know that I am not a risk taker, but I work over 50 hours a week as an exempt employee to manage a unit of 10 people.
After I was married and had 3 children I earned my CPCU and Master’s degree to position myself for success. And that was while I worked 40+ hours a week, did all of the cooking for my household, and most of the housework including helping my children with school work. Believe it or not, people other than business owners do work hard and make sacrifices. I respect what you have done to be successful, I only request the same in return. Please remember, not everyone can be a business owner or you would have no one to support your business.
Ron, I am consistent with my message. Where is it written that government is the answer for funding for small business? Did you not learn anything from the Green Energy debacle? I am afraid we have not had much transparency from our government on so many fronts it is impossible to trust them. They are operating on our tax money and funding start up schemes like this one just doesn’t cut it with me. I commend you for getting an education and working hard to succeed. You may be lucky to work for a good employer who recognizes your work and has given raises. I have known a lot of very good insurance people over the years who were laid off due to corporate downsizing or merger with other companies and have lost out. I do not regret for a moment that I took the step to be an owner and I do recognize the talent supporting my organization. Many have been with me up to 15 years so I must be doing something right.
We will have to agree to disagree what consitutes government funding. In my opinion, tax breaks qualify as government funding because paying less in taxes is the same as getting money from the government. So if you are for tax breaks to job crearors, you should be for funding for job creators.
What is your position on President Obama’s American Jobs Act that the house would not even consider? Please be specific in your objections.
I even cited the official website of the House Republicans.
September 13, 2013 at 6:49 pm
Sargent Major says:
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Agent/FFA,
I think we have a lot in common. I did a start up, No markets, no customers and no money backing the operations. I worked hard, a couple companies took a chance on me and I delivered volume or they probably would not have stuck around. Now Those companies are reaping great rewards. First 5 years was a struggle but got easier the longer I hung in there and the harder I worked. Worked out fine for me and I enjoy life more than I ever have. Would not trade the experience for anything.
I did it twice. I was captive for 18 years and then in 09 broke free. First year independent was dicey and last year was terrible. But this year rebounded nicely. Expecting some hefty increases in cost with my heal ins expected to jump 30%, extra producer and support staff going to kick the E & O.
IRS things should be resolved soon – real soon. I am expecting a victory.
FFA, the captive agents have had a rough go for several years. I have seen many stories of Allstate or Farmers Agents who were treated badly and eventually broke free and many more wish they could. My marketing reps tell me they are bombarded with requests from these agents to appoint with an Independent Agency company and they resist doing it because they don’t want to become embroiled in a contract dispute with a captive carrier on business being moved and don’t need the hassle.
Sargeant, we have been missing you on the other Obamacare articles. We continue to have run ins with Libby, Ron, Planet, D and others that think Obamacare is the best thing since sliced bread despite all the evidence to the contrary.
Regarding the background, I received my training from Liberty Mutual when I was a direct sales rep. It was very good on how to solicit and sell, but their remuneration package was not great and they gave very little renewal credit. I decided to go to the Independent Agency ranks and have never looked back after being a producer and then agency owner.
Please quote me where I said that I even supported the ACA let alone believe it is the best thing since sliced bread. I have said multiple times that I am against the law in its totality. I believe, like most people, that there are some good points and bad points. If the Republicans had implemented their ideas for health care reform when they had the chance we would not be in this mess. You need to start holding your side accountable as I have President Obama.
Ron, if you remember correctly, Clinton tried to force Hillarycare on the American public during their time and had almost no support. It was a bad idea at the time and Obamacare was worse when it finally passed without one Republican vote behind closed doors and in the middle of the night. When Obama took office, he said he would focus on the economy like a laser. Instead, he pushed Obamacare 24/7 and let the economy languish. Please try to remember the famous Blair house meeting between him and Reid/Pelosi with the Republican side. They had ideas on how to proceed and they were quickly brushed aside. The attitude was -we won, you lost so get in the back of the bus. The lie told to the American People was that Republicans were blocking “progress” on passing the bill. The truth was that the Republicans were in no position to block anything since the Dems had control of both houses. Those pesky Blue Dog Democrats had to be threatened, bribed or otherwise convinced to vote for this travesty. Many Senators had reservations, hence the Cornhusker Kickback and the Louisiana Purchase. There really isn’t much in this bill that is good in all the 2,700 pages and 15,000 pages of regulations. They could have put in Tort Reform, created competition across state lines and Pools for Prex people at far less cost, but no, we just had to have this plan come hell or high water. No wonder there has been so much push back from business. They are going to do whatever it takes to stay in business and if it means laying off employees or cutting hours, they will do it.
Are you still trying to convince me that something I am against is bad? I also did not like how the process proceeded, but at least the Democrats were able to get something passed. I would have much more respect for the Republicans if they had at least tried to come up with some solutions, as you said,”Tort Reform, created competition across state lines and Pools for Prex people at far less cost,” to the health care problem while they had control of all 3 branches or if they proposed specific, line-byline changes to the ACA instead of pushing for the full repeal that had zero chance of passing. President Obama has shown some flexibility with the law by delaying some of the provisions. I would venture a guess that he would have been willing to address some of the other issues Republicans had with the bill if presented in a more respectful manner.
How about Grover Norquist forcing the Republicans to sign his anti-tax increase pledge with threats of losing funding and being primaried? Also the reason Jon Huntsman did not have a chance at the Republican nomination and why we are stuck with 4 more years of President Obama. No elected representative should EVER pledge anything except loyalty to the Constitution and the American people. It happens on both sides. Please open your mind and your eyes beyond the Republican rhetoric and taliking points and read more thhat juat Drudge. Maybe then you can form your own opinions.
September 17, 2013 at 11:02 am
jw says:
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Ron – you’re wasting your time and energy. Seriously, why bother arguing with a wall? He’s not going to read your post or comment on what you actually wrote. If that’s how he wants to respond, why engage?
September 16, 2013 at 2:14 pm
Captain Planet says:
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Agent,
For the record, I do not believe it is the best thing since sliced bread. I personally was hoping for at the very least, a public option. Instead, President Obama brought us the Heritage Foundation’s response to Hilarycare, only this time, with a Democratic stamp of approval. But, I do believe it is a step in the right direction. Status quo wasn’t working, especially for over 30 million Americans who couldn’t get insurance. I have also seen my premiums go up double digit increases for over a decade until last year, at which time my premiums remained flat.
I love the statement “We’re not interested in making profits.” How does any business survive and grow without making a profit? How are these guys going to repay their start up loans? Not paying claims is a good start.
It will take about 2 years for a start up to really know if they are making money or losing money. That is why I never write a policy for a new start up. The key that they rely on is that no real payments will be made for at least 90 days after a claim and longer if they manage the system. In this case they may hit the road quickly with sales because of the large pool of new buyers. They will be able to hide losses on two fronts, one being the investment money poured in the front end will make their profi & Loss statements look like they are ok and the second is the long tail on payouts, they will live on unpaid claims. That is why it takes about two years before trouble really begins to show up. Stay away from these typs unless you want to get embarassed.
These people are a joke. They may be “non-profits” but I’ll bet they plan on HEFTY salaries for themselves paid out of the insurance premiums the collect.
Agent, since you brought MAnziel to my attention, I’ve been following. What a day this kid had. He would look great in a Bears Uniform although Cutler been handling things this year.
Looking like this kid has the chance to rewrite the record books..
FFA, Manzell is good as he showed Saturday. He had Saban pulling his hair out on the sideline. It is too bad Sumlin hadn’t recruited a few more defensive players who could slow down Bama’s offense. It looks like Manzell will just have to outscore the opponents this year. A bad thing about the fast break offense is that the defense has to go back out there before they can recuperate and then they get worn down and give up too many points. I am glad your Bears managed to squeak by the Vikings. Dallas got done in by Andy Reid who is a Cowboy killer. He came in to Kansas City, replaced 30 players with ones he wanted and now they are a legitimate team. Dallas keeps doing the same things over and over and hoping for a different result. They are an 8-8 team this year just like the past two years.
I didn’t catch the F Ball game. Was back in the Dells this week end. They have their “Shut Down” sales. Officially marks the beginning of X Mass shopping for me. Unfortunately, with my wife recent surgery, could not walk the strip. One more trip up there to pull the boats and push anti freeze. I’ll get back there for new years and then again in Feb for a trip to the water park…
How enlightening and how naive! Let’s see how they do. Insurance Companies have been providing health insurance for decades and do a pretty good job. Health insurance and health care are not the same thing and that is the basic flaw in the Health Care Deform bill. Funding for medical clinics in rural and inner cities, health education programs, scholarship programs for healthcare practitioners would have been better strategies for better health care.
Hi agent, I have been busy, traveling quite a bit. We have some large out of state customers which requires us to travel and I have been on the circuit so to speak. I have not had a chance to really been get on line for anything other than business/office email. As far as Obamacare, looks to me like even his own party thinks it is bad. When Charlie Rangel has problems with it, then it must be bad.
On that topic, I have a friend who started his own consulting practice in automotive testing for manufacturers. Mainly calibration testing etc. e received a letter from his healthcare provider (he pays for his own) who told him that his premium was going up (He has a $5,000.00 deductible per person and the premium is over $1,000.00 per month now). they directed him to the “exchange” and told him he could get it cheaper. He went to the exchange and they told him (via computer message) that they could not do anything for him on the premium that it would be more under the exchange. He is screwed for opening his own business. e said he was not going to buy any and if he or hi wife and child get sick, he would sign up immediately and get coverage because they can’t turn him down and no pre existing conditions apply.
It is a shame what honest, hard working people are going to have to do.
“they directed him to the “exchange” and told him he could get it cheaper. He went to the exchange and they told him (via computer message) that they could not do anything for him on the premium that it would be more under the exchange.”
That’s funny, because the exchanges haven’t even opened their doors yet. Another misstatement, fib, or out-and-out lie from Sarge. Surprise!
Oh Libby of little intelligence, I got a copy of his letter, went online to the site his carrier sent me, here in Michigan and plugged some info into the website and was told that due to the information submitted you will likely not have any savings under the healthcare exchange.
The only liar in the room is and has been you, my dad went to West Point, I am a broker, I lived in the hood, surf KKK websites (that one is true), I yadda yadda yadda. You are either a professional blogger or sit at a desk and burn your employers time up on the internet.
Oh, Sarge, ye of little couth. You only WISH you could have gone to West Point. You might have learned some manners. You are neither an officer or a gentlemen and I am beginning to seriously doubt you were ever in the service.
I am a broker, which means I represent my clients. What are you? Or did you miss the difference between broker and agent in Insurance 101?
Go back on the road with your “large out of state customers”. LOL! What are they? $100,000 in premium? LMFAO!
Sarge, if he is not in during open enrollment, he wont get in. If he gets sick in April, He has to wait for October to roll around again…
And, $1000 @ month for three people….. $2732 is my current monthly bill for the three of us. Been told to brace for a 30% jump.
FFA,
Right now he eats all his medical costs because he has a $5,000 deductible per person and he said the premium was over $1,000 per month (I don’t know if it was a little over or a lot). There are two people, him and his wife. So his real cost is somewhere between $12 and $17K per year and he has not been sick. Well, he is a guy that can’t catch a break. His company eliminated his whole department as a headcount reduction because of increased benefit costs (I.E ACA) Unaffordable healthcare act. They thought it was going to be sold but it wasn’t and the company is cutting costs. Rather than lean on the government to take care of him he started his own firm and as you might expect, its tough. So, healthcare costs for him eat up all of the money he is taking in. We wrote his E&O and we have not billed him for it. We may just forget it. Good people are going to suffer for bad legislation and a bad administration
Sargeant, the stories just keep pouring in each week on companies that are struggling, reducing hours, laying off employees because of this dastardly law. As reported by Michelle Malkin on her site, Sea World, Inc., Trader Joe’s, Wegman’s Grocers and even Emory Healthcare in Georgia are either laying off employees or reducing hours because of this law. It is the biggest job killer ever passed and is proven each and every week that goes by.
Yes, you are right, Sgt. Major. We have suffered as a result of President Reagan, in some part Bill Clinton, and George W. Bush. If we could get some compromise from Republicans on Capitol Hill (rather than obstructionism Senator McConnell, Eric Cantor, Newt Gingrich, and others pledged since day 1 of President Obama’s first term), we may have seen the economy improve even faster and more robust than it has.
Let’s bring the factories back to America. Let’s start buying American-made again. Roll back the Reagan-era tax cuts on the top earners, and let’s get America back to where it was before supply-side made America start to turn its side towards belly-up.
Planet, as usual, your revisionist history is full of holes. It is interesting that you go all the way back to Reagan to blame Republicans for the economic demise caused by Progressive Liberalism rampant during Clinton through Obama. The economy might have improved by now with tax cuts to “all” Americans including all Small Business. Instead of languishing at 1% growth, it would be 4-5% by now, employers would be hiring instead of laying off or reducing hours of employees. The Stimulus done in 09 was not a stimulus which proved that massive government spending was an abysmal failure and all those shovel ready jobs were not created since it was just a political payoff instead of creating private sector jobs. By the way, I hate to inform you, but increasing taxes do not create jobs. Look at any of the European countries. They aren’t having much luck creating jobs with 70% rates and massive government spending. If your employer received notice that their corporate tax rates were being increased dramatically, do you think they would hire more or cut back? Your solution is a sure fire prescription for disaster just like your administration. No wonder DC is on fire while the President fiddles.
Sarge, I feel for him. I have personally paid over $17K in OOP expenses not including premium’s. I still have about $4600 left to go and now they are talking knee replacement for my wife. Med Tec has advanced to the point where I am ready for my eye surgery (I am legally Blind in my Left Eye). That’s my motivation for selling this crap in a nut shell.
I fall behind just to play catch up. There is a light at the end of the tunnel and then I get hit again.
Captain Planet said- “Yes, you are right, Sgt. Major.”
Captain, I am right but your analysis of the US economic problems is wrong. While I have not been supportive of all of the prior presidents economic decisions I have to say that the track record for each speaks for themselves. Bill Clinton was bad for the U.S economy and he inherited his good fortune from Reagan and Bush 1. You have to believe that if you take the position that Obama inherited his bad fortune from Bush 2. Clinton, in just one example, spent about 2 minutes reviewing the sale of Chrysler Corporation to Daimler Benz. He was more concerned with Monica Lewinski (His problem at the time) than he was with 150,000 workers and 19,000 US suppliers. Look how that turned out.
As far as Obama, He has not been good for business. His economic plan is a liberal plan which is for driving up debt, driving up taxes, increased federal regulation on business, carbon taxes, increase energy costs to business, increased pollution costs and no incentives to hire new employees or set up new MFG plants.
So, right now business is hording cash s they can. They are not going to increase jobs because they can’t anticipate their future costs ie Healthcare and regulation. Jobs are continuing to go elsewhere, China in particular and Obama and his supporters continue to blame other Presidents.
The Obama strategy is, promise everything, deliver nothing and blame it on everyone else. Just watch his press conferences.
Let me get this straight. President Clinton has to give credit for the economy under his watch to his 2 predesessors that took 12 years to fix President Carter’s economy, yet President Obama is expected to fix the economic conditons, which were worse than President Carter’s, that he inherited from his predesessor in less than 4.5 years, or for ever how long it took for the right to say that President Bush should no longer be blamed? Is that correct?
Go ahead and apply the right-wing spin.
The reason businesses are hording cash is because it is cheap to do so. If you make it more expensive to hord the cash than spend it on expansion and hiring, I guarantee you any competent business would begin expanding and hiring. Remember, the number 1 goal of any for-profit business is to maximize profits.
Businesses will only create jobs with increased demand. Lowering corporate taxes or taxes on the wealthy who will not increase their spending, will NOT create any jobs.
Ron, you refuse to get it straight. It took Ronny right around 3 years to straighten out the Jimmy Carter mess which had a misery index of over 20%. Tax cuts to business, starting IRA’s, 401K’s, lessening overburdening regulations led to a huge increase in job creation and new taxpayers. It would have been even larger had Tip O’Neil not welched on holding down spending in Congress.
Please provide specific data regarding President Reagan’s 3 year recovery and what HE did without Congressional approval that led to the quick recovery.
Sgt Major,
You were somewhat right but frankly, your analysis is wrong. What we have is a velocity of money problem in today’s economic world. All of the money is at the top. We need to increase demand in order for companies to hire, not give a tax cut. Why hire someone if you are supplying the needs of the consumers with the employees you already have? If more people in the middle and lower classes had some money to spend, demand goes up, and companies need more people to help them supply that demand. A tax cut in today’s world just means the company gets to hold more cash. They have no reason to spend that supplemental money on a new hire until they actually need that new hire to meet their production needs, whatever those may be.
I’ll say it again, bring the American factory jobs back home! Start buying American-made! Vote with your dollars. If you keep buying cheap Chinese crap, guess what companies are going to continue to peddle you? And, as a result, even more jobs will be lost to the cheaper labor the Chinese Gov’t isn’t ashamed to support. But, they should be: http://www.youtube.com/watch?v=W_YnaHNcISwSimilar
Ron said- “The reason businesses are hording cash is because it is cheap to do so.”
You have got to be kidding. Were you a history major? I have been a Chairman and CEO o 2 large companies and let me tell you that hoarding cash in this interest rate environment is not what a company with a board of directors and shareholders wants. What you want to do is deploy capital (cash) where you will make the most money. that is product expansion, larger market share and more employees to service and sell the business. The reason companies are hoarding cash is just what I said above. Do you deny that Obama is increasing taxes, placing tougher environmental controls, adding business costs because of obamacare, increased federal regulation, carbon taxes?
With Obama’s actions to date, why would any business increase manufacturing expansion, full time jobs etc while not having any idea what Obama is going to do next?
Do you deny he has offered any incentives for business? If so what job stimulators has he offered? About as many shovel ready projects that he has kicked off- NONE
lastly, people who run those companies make a lot of money because they have a lot of responsibility, ownership and shareholders. If they don’t do the job the BOD replaces them. Anybody can offer their resume for the position. If they think they can handle it, they should apply. If they own the company and have put up their OWN money, it is nobody’s business what they make.
Correct if I am wrong, but isn’t the goal of any corporation to maximize profits? I agree with you regarding interest rates and the correct approach to capital utilization. However, it is still chepaper to hoard cash than deploy capital for expansion and hiring if there is no increased demand. That is my point. Right now the middle and lower classes have less disposable income and they create demand. We need to somehow move money to them so they spend and businesses can expand and hire more. That is why demand side economics works far better in the real world than supply side.
I have never heard of a successful business that expanded and hired just because they had extra money laying around. The first step is to identify demand for a product or service. Without demand, you are just throwing money away.
I will and have never begrudged anyone from making the most money they can, but I do believe that one of the biggest reasons why are economy has not recovered as fast as it should is that those that already have have far more money than can be spent by multiple generations are the ones who are experiencing 95% of the income gains under President Obama.
Someone really needs to explain to me how he is the anti-rich President when the wealthy are the ones who are expanding their fortunes and everyone else is left languisihing.
* What has Obama done to encourage or incent business to expand growth and hire new employees?
* What job stimulators has he put forth?
* Do you believe that Obama’s actions- increased taxes, increased an abominable level of debt, increased federal regulation, increased federal cost (ACA), Increased environmental burden/cost is a strategy to increase job growth (especially non skilled job growth)and economic growth in the US?
* If you were a CEO of a large publicly traded company tell us specifically what your plan would be to use shareholder equity (money)to grow jobs without destroying shareholder value in this environment?
All I said was that demand drives businesses to expand and hire, not extra cash, and that the wealthy have by far faired the best under President Obama’s administration. And I did cite my source of that information.
If extra cash did motivate a business to expand and hire we would have much lower unemployment and increasing wages.
If I were a CEO, my plan would be to seek out opportunities to grow revenues where there is sufficient demand for the product or service to earn an acceptable ROI for the company. It is not that complicated. Implementing the plan is when the work begins.
You either can’t answer the questions or won’t, so you really have no specific plans just a flawed liberal strategy that would never pass a board room vote. You are good at demanding data and sources but can’t do it yourself.
Let me share a little secret- Companies already look for every new business opportunity to grow revenue where there is demand and the ROE justifies capital deployment. If they find one, even in todays economy they will take advantage of it. That is the way business works.
However, This business environment is fraught with business challenges, many of which are unknown (cost) or yet to be determined because of the actions of this administration. For example, yesterday the Fed (Bernanke) said the US was going to continue to put 85 Billion per month into the economy (buying bonds) in order to keep the economy from declining or possibly collapsing because it can’t do it on its own and interest rates will continue to stay at the current level. They are juicing the economy. That is 85 billion of taxpayer money that could be used to create jobs if the administration knew how to create jobs and work with business, they don’t.
Additionally, since people can’t make any money at a bank they are pouring it into an overheated stock market. If interest rates were to start rising, the market would have a huge pull back or possible collapse and we are back in 2009. That has an impact on every business investment portfolio in the country and even around the world. I.E. 401k portfolios, pension funding, surplus equity, bank accounts etc. If there is a big pull back or collapse then people won’t have any money to buy anything. So what business, given these conditions (especially manufacturing which is capital intensive) would expand, hire (especially unskilled labor) and joyfully spend money not knowing what the market is going to do, whether or not the Government is going to stop juicing the economy, Obamacare costs, tax increases, environmental regulation expense, etc. and have a board of directors not laugh them out of the building?
The only one I know might be venture capital deals which, if they don’t work get sold or the plug pulled and that is not going to benefit the economy.
Look Obama was a community organizer with no track record of any kind. So he is not that business bright to begin with. He is a good speaker and great at making promises that he doesn’t deliver on (remember shovel ready projects? which we still have not seen one). I don’t expect him to be Warren Buffet but I would think that he would call on business leaders to help him and he hasn’t. All he has done is demand and support a liberal social agenda.
September 19, 2013 at 2:59 pm
Ron says:
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Sarge,
I answered the only question for which I had an anser. I
Exactly what data do you want me to provide? I never made any statement that should be supported by data without citing my source.
What is my liberal startegy? That I believe demand is important when considering expansion and hiring?
You said, “Let me share a little secret- Companies already look for every new business opportunity to grow revenue where there is demand and the ROE justifies capital deployment. If they find one, even in todays economy they will take advantage of it.” That is exactly my point. Thank you for agreeing with me. The problem in today’s economy is that those who are experiencing increased income are not increasing demand. They are hoarding or investing the cash. We need to find a way to get more cash in the hands of those looking to spend so demand goes up.
The business environment will always have uncertainty because economic conditions are constantly changing regardless of who is President. The country has seen great and poor economic times through Republican and Democratic adminisrations alike.
I am still waiting for your opinion on President Obama’s American Jobs Act.
September 18, 2013 at 12:21 pm
Ron says:
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Sarge,
You said, “I have been a Chairman and CEO of 2 large companies”. So you are no longer a Chairman and CEO? What happened?
I decided to retire and started my own Managing General Agency. If my children don’t want it I will sell it, bank the money when I retire. Tough at first but great organization now and I don’t have to worry or deal with investors or shareholders.
That is an independent agency, LOL, LOL!!!!!!!!!!! That may be your best stupid comment yet!!! Keep them coming!!!!!!!!!! HaHaHaHaHaHa!!!!!!!!
September 20, 2013 at 8:31 am
Libby says:
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Sarge – an MGA is NOT the same thing as an Independent Agency, unless you don’t know the difference between the two. An MGA is a BROKER that holds the pen for one or more carriers. You are quite obviously new to the insurance business.
September 23, 2013 at 1:56 pm
FFA says:
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Libby – MGA’s are independent agencies. Typically two divisions Retail – sells toy average Joe on the street and then Wholesale – comes to guys like me wanting to place business to markets they have that I don’t. I have a bout 20% of my business through MGA’s.
September 23, 2013 at 3:44 pm
Libby says:
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FFA – that is not what an MGA is. An MGA is a Managing General Agency, which means they have the pen and can underwrite, price, and place business directly with a carrier. They are a broker or wholesaler and do not sell retail.
There may be a retail division within a company that also operates as an MGA, but that is not what Sarge said. He said he is a partner in an MGA.
I have worked for both, so I know.
September 17, 2013 at 6:38 pm
Sargeant Major says:
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Planet,
My analysis is right. Do you believe that Obama’s actions have been business friendly? Do you think that business should just expand and hire in this economic environment- Acutely high US debt, A high potential for a government shutdown, higher taxes, higher employee costs (I.E. Obamacare), tougher federal legislation, tougher environmental controls etc? Do you actually believe that a business with shareholders (people you are responsible for)wld forgo their dividend checks in order o make poorly calculated decisions just for the sake of expansion? Tell me what business generators or incentives Obama has made to get business to expand and hire more employees? NONE.
So you want to take more money from the top. Well, they already pay 80% or more of the tax bill. Even Bill Maher thinks it is to much. How about having the 50% that pay nothing pay something, like 10 or 15%. How about working to get the 48% of people off of government entitlements? Obaa talks about retraining and job redirection and what has he done? Nothing.
So Planet you are good at broad generalization, what specifically should be done to generate jobs given what Obama has done to the business environment? Oh, and provides the metrics. I think that is what the libs like to say.
Let’s see – Under President Obama:
Businesses are making record profits, Wall Street has set record gains, the rich are richer than they ever have been (Reaganomics has led to the largest wealth gap in the history of the world), and consumer confidence is higher than it has been since 2007. Yes, I’d say President Obama’s actions have been in the interest of business, Wall Street, and the rich. It’s certainly a knock I have on the guy. Instead, he should be doing more for the job creators. You know, the middle and lower classes who spend about 100% of their income on services and goods provided by business? Middle and lower classes increase demand, THEN the business hires more employees – hence, job creation.
Just answer the questions in my post. Or don’t you have any answers?
As far as the lib rhetoric, not all of what Obama has done has set in yet including Obamacare, taxes and all of the Fed regulations. That is the unknown. So business is not expanding. They are putting up reserves (hoarding cash) because they do not know what is coming with the actions the Obama administration has taken or what the impact will be on their business. That is smart business. Consumer confidence? Last night a new Gallup poll (I believe was Gallup) showed consumer confidence down. It also showed that 60% of the country is now negative and against Obamacare and certainly the handling of the Obama administration. It also showed that Obama’s approval rating is at 28%, lowest during his tenure. Newsweek’s cover (not known to be conservative Has a picture Of Obama and the caption- “Hit the road Barack”. Obama’s own party has spoken out against Obamacare and just this morning Rite Aid Pharmacies announced that they will no longer provide healthcare for employees They will give them a check and they can buy their own. Why? they said they could not afford the increased cost of Obamacare. Even the unions including the longshoremen now oppose Obamacare, all 140,000.
As far as Wall Street, invest how you like, but the market is overheated. The reason they continue to gain is that there is no where else for money to go since interest rates are poor and many individual investors do not know when to exit the market. Remember, 2009?
Ron said- “I am still waiting for your opinion on President Obama’s American Jobs Act.”
My opinion, it is a joke. It is a tax and spend proposal. Obama’s own party did not like it. Harry Reid held it up in the Senate citing the need to address “Chine trade bill first”. Even Harry is not that stupid.
Here is a good read for the act
Libby said-“an MGA is NOT the same thing as an Independent Agency.
Well Libby, I beg to differ. We are an independent agency. We are independently owned (Me and the rest of the partners which you don’t understand either). We run our own business, hire our own staff, make our own payroll, pay our own taxes and expenses. We contract with carriers we want to contract with(just like a retail agent)and we sell and solicit business. No carrier has invested money in the agency. However, we do have additional responsibilities that a retailer does not. We bind and issue policies on behalf of the carriers (we have more than one carrier. In fact we do business with over 50 carriers), we appoint agents who submit business to us and we service and have settlement authority up to certain levels for claims and we get paid for providing that service.
Additionally, we have a retail insurance department which functions as a retail arm for the placement of retail business.
I am glad you went to Wikipedia for the definition of an MGA but LOL you made my day with that idiotic remark. You are the one that is either are new to the business or don’t have a clue. I bet the latter. HA HA LMAO!
You don’t need to explain the difference between an MGA and an Independent Agency to me, Sarge. You’re the one that “retired” after being a CEO for two corporation and then opened an MGA. So you are obviously NEW to the insurance business.
I have been doing this for 33 years. You may be an independent business owner, but you are NOT an Independent Agent. But I’m glad I gave your ignorant ass a chuckle. You sure are easily amused.
You are the first to jump on someone that has a different view than yours. You are the first one to call them names, cuss them, try to berate them. Just go back thru the blogs on any given day when you are on. Which is everyday and all day most of the time. Then because your not that smart, you make yourself look stupid and then humorously try to recover and blame someone else, cuss them like above or make up an excuse. LOL You act like you have been “doing this” more like 33 minutes!
So if I don’t have an independent agency what is an independent agency and explain the difference? I can’t wait for your answer!
BTW, I had to explain it to you because you had no idea what it was, just like you never figured out that “partner thing” Your the ignorant ass HAHAHAHAHAHA!
Sarge – Don’t think yourself morally superior just because you think you don’t “cuss”. You take low-blow pot-shots at me all the time and have used foul language as well. You’re a little man that likes to put down women to make himself feel better about himself. I called you on it and you can’t stand it.
As for being an ignorant ass, at least I know the contraction for you are is you’re and not your.
And if I have to explain to you the difference between an MGA and an Independent, then you don’t belong in the insurance business. But I think that fact has already been established. LOL!
First, your a moron, not smart, have a big mouth and most of the time it is a waste to give you any time at all.
But besides that, if you don’t want someone to take “pot shots” don’t give them a reason. Act like you are the professional you say you are and not the jerk you act like with anyone you take an argument with on this blog. That is the jerk that you act like with anyone you don’t like on IJ me or anyone else. Act like a professional and you will get treated like a professional. Act like a jerk and you will be treated like a jerk
September 23, 2013 at 3:41 pm
Libby says:
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“First, your a moron, not smart, have a big mouth and most of the time it is a waste to give you any time at all.”
And I’M the jerk here?
You, Sarge, are the one that started this battle by insulting and slandering my father, a war hero that died for this country. And even though I apologized to you when I went too far one time, you have yet to apologize for that.
If and when you apologize for your disgusting remarks about my father and his service, I will treat you with the respect you will have earned. But not until.
September 23, 2013 at 4:04 pm
Justaguy says:
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I love these afternoon soap operas. Do any of you actual work?
Hats off to ya! Good luck on the tall task ahead…
FFA, what could possibly go wrong with this scheme? I have in the past seen agents/brokers start up with Group Plans cutting rates in half, collecting premiums and when the claims started rolling in, there was no insurance, no one to pay and an empty office and the crooks were somewhere in Switzerland. A few were caught and convicted, but a lot of people got hurt.
yes Agent, I can see where this would go south in a hurry. If done properly, it could take off.
To hear of someone taking on such an endeavor, I wish them well. You and I (among others) went through start up. We know the pain on a much smaller scale.
Yes FFA. We took the risks of start up because we had markets lined up and they knew we were good at what we did. I was lucky that I bought the agency from the previous owner where I was a Producer for many years. Much of the business was mine anyway. My partner and I did have a relatively small loan for a down payment and then we paid the former owner off based on monthly commission income on his business. It worked well, but I wouldn’t have wanted to start an agency from scratch with no customer base. That is an entirely different scenario and the pressure is enormous.
Luck you agent. I started scratch with a stack of apps and a pat on the back. I bet me against the world and 20+ years later still standing.
Agent,
Shouldn’t we be applauding these job creators instead of demeaning them?
Do I know if they will be successful? No, but at least they are trying to be innovative to take advantage of an opportunity. Isn’t that what the risk takers and job creators, that the right says we need to support, do?
Or is the problem that, if these start ups are successful, the ACA may have a more positive outcome than you wanted?
Please try to be more consistent with your message.
In addition, EVERY business was once a start up. Even though you purchased an existing book, someone else had to take the risk and start it from nothing.
Have a little faith once in a while.
Some one needs to play Devils Advocate…
FFA,
I believe you are the most fair and honest person on this blog. Even though we disagree sometimes, I respect you more than anyone else on either side of the argument.
Ron, Life is way too short to spend it being pissed off…
Very interesting. Take a look at the CEO’s of these co-ops..lawyers? Hmmmm!
Ron, your reading comprehension leads a lot to be desired. Did you notice that these outfits are using government funds to start up? Haven’t we had enough of that with the Green Energy crowd who blows through their loans and promptly go belly up within a year or two? FFA, Sargeant & I had no funding from the government to get us started until we could build our book. By the way, yes I bought a small book from the prior owner of the agency, but the majority of the total book was what I had sold and serviced. He was well compensated for his book when he retired. The agency is roughly twice as big now as it was when I bought it and that took a lot of hard work and want to. What have you done except to be an employee of someone else? How many sacrifices have you made or risks you have taken to succeed?
Agent,
My reading comprehension? You must be kidding. What did I write that showed I did not comprehend what was written in the article?
You said in a previous comment, “Do any of them (Progressive Democrats) ever consider a tax break to give to Small Business so jobs can be created?” So now you are against government assistance, that is what tax breaks are, to create jobs? I only ask that you be consistent. Should the government provide assistance to create jobs or not? Or do they need to go through you first for approval?
Where did I question anything about your hard work or risks in order to build a successful business? You are way too sensitive.
I know that I am not a risk taker, but I work over 50 hours a week as an exempt employee to manage a unit of 10 people.
After I was married and had 3 children I earned my CPCU and Master’s degree to position myself for success. And that was while I worked 40+ hours a week, did all of the cooking for my household, and most of the housework including helping my children with school work. Believe it or not, people other than business owners do work hard and make sacrifices. I respect what you have done to be successful, I only request the same in return. Please remember, not everyone can be a business owner or you would have no one to support your business.
Ron, I am consistent with my message. Where is it written that government is the answer for funding for small business? Did you not learn anything from the Green Energy debacle? I am afraid we have not had much transparency from our government on so many fronts it is impossible to trust them. They are operating on our tax money and funding start up schemes like this one just doesn’t cut it with me. I commend you for getting an education and working hard to succeed. You may be lucky to work for a good employer who recognizes your work and has given raises. I have known a lot of very good insurance people over the years who were laid off due to corporate downsizing or merger with other companies and have lost out. I do not regret for a moment that I took the step to be an owner and I do recognize the talent supporting my organization. Many have been with me up to 15 years so I must be doing something right.
Agent,
We will have to agree to disagree what consitutes government funding. In my opinion, tax breaks qualify as government funding because paying less in taxes is the same as getting money from the government. So if you are for tax breaks to job crearors, you should be for funding for job creators.
What is your position on President Obama’s American Jobs Act that the house would not even consider? Please be specific in your objections.
http://www.gop.gov/policy-news/11/09/13/summary-of-the-presidents
I even cited the official website of the House Republicans.
Agent/FFA,
I think we have a lot in common. I did a start up, No markets, no customers and no money backing the operations. I worked hard, a couple companies took a chance on me and I delivered volume or they probably would not have stuck around. Now Those companies are reaping great rewards. First 5 years was a struggle but got easier the longer I hung in there and the harder I worked. Worked out fine for me and I enjoy life more than I ever have. Would not trade the experience for anything.
I did it twice. I was captive for 18 years and then in 09 broke free. First year independent was dicey and last year was terrible. But this year rebounded nicely. Expecting some hefty increases in cost with my heal ins expected to jump 30%, extra producer and support staff going to kick the E & O.
IRS things should be resolved soon – real soon. I am expecting a victory.
FFA, the captive agents have had a rough go for several years. I have seen many stories of Allstate or Farmers Agents who were treated badly and eventually broke free and many more wish they could. My marketing reps tell me they are bombarded with requests from these agents to appoint with an Independent Agency company and they resist doing it because they don’t want to become embroiled in a contract dispute with a captive carrier on business being moved and don’t need the hassle.
You got me figured out. When I broke free is when I went into Indiana at the urging of one of my outside contracts. So, they left me alone…
Sargeant, we have been missing you on the other Obamacare articles. We continue to have run ins with Libby, Ron, Planet, D and others that think Obamacare is the best thing since sliced bread despite all the evidence to the contrary.
Regarding the background, I received my training from Liberty Mutual when I was a direct sales rep. It was very good on how to solicit and sell, but their remuneration package was not great and they gave very little renewal credit. I decided to go to the Independent Agency ranks and have never looked back after being a producer and then agency owner.
Agent,
Please quote me where I said that I even supported the ACA let alone believe it is the best thing since sliced bread. I have said multiple times that I am against the law in its totality. I believe, like most people, that there are some good points and bad points. If the Republicans had implemented their ideas for health care reform when they had the chance we would not be in this mess. You need to start holding your side accountable as I have President Obama.
Ron, if you remember correctly, Clinton tried to force Hillarycare on the American public during their time and had almost no support. It was a bad idea at the time and Obamacare was worse when it finally passed without one Republican vote behind closed doors and in the middle of the night. When Obama took office, he said he would focus on the economy like a laser. Instead, he pushed Obamacare 24/7 and let the economy languish. Please try to remember the famous Blair house meeting between him and Reid/Pelosi with the Republican side. They had ideas on how to proceed and they were quickly brushed aside. The attitude was -we won, you lost so get in the back of the bus. The lie told to the American People was that Republicans were blocking “progress” on passing the bill. The truth was that the Republicans were in no position to block anything since the Dems had control of both houses. Those pesky Blue Dog Democrats had to be threatened, bribed or otherwise convinced to vote for this travesty. Many Senators had reservations, hence the Cornhusker Kickback and the Louisiana Purchase. There really isn’t much in this bill that is good in all the 2,700 pages and 15,000 pages of regulations. They could have put in Tort Reform, created competition across state lines and Pools for Prex people at far less cost, but no, we just had to have this plan come hell or high water. No wonder there has been so much push back from business. They are going to do whatever it takes to stay in business and if it means laying off employees or cutting hours, they will do it.
Agent,
Are you still trying to convince me that something I am against is bad? I also did not like how the process proceeded, but at least the Democrats were able to get something passed. I would have much more respect for the Republicans if they had at least tried to come up with some solutions, as you said,”Tort Reform, created competition across state lines and Pools for Prex people at far less cost,” to the health care problem while they had control of all 3 branches or if they proposed specific, line-byline changes to the ACA instead of pushing for the full repeal that had zero chance of passing. President Obama has shown some flexibility with the law by delaying some of the provisions. I would venture a guess that he would have been willing to address some of the other issues Republicans had with the bill if presented in a more respectful manner.
How about Grover Norquist forcing the Republicans to sign his anti-tax increase pledge with threats of losing funding and being primaried? Also the reason Jon Huntsman did not have a chance at the Republican nomination and why we are stuck with 4 more years of President Obama. No elected representative should EVER pledge anything except loyalty to the Constitution and the American people. It happens on both sides. Please open your mind and your eyes beyond the Republican rhetoric and taliking points and read more thhat juat Drudge. Maybe then you can form your own opinions.
Ron – you’re wasting your time and energy. Seriously, why bother arguing with a wall? He’s not going to read your post or comment on what you actually wrote. If that’s how he wants to respond, why engage?
Agent,
For the record, I do not believe it is the best thing since sliced bread. I personally was hoping for at the very least, a public option. Instead, President Obama brought us the Heritage Foundation’s response to Hilarycare, only this time, with a Democratic stamp of approval. But, I do believe it is a step in the right direction. Status quo wasn’t working, especially for over 30 million Americans who couldn’t get insurance. I have also seen my premiums go up double digit increases for over a decade until last year, at which time my premiums remained flat.
Most of these start ups won’t be around for more than 5 years. Watch out!!!!
Most will fail in one year.
I love the statement “We’re not interested in making profits.” How does any business survive and grow without making a profit? How are these guys going to repay their start up loans? Not paying claims is a good start.
Take care of your clients and profit will fall in line.
It will take about 2 years for a start up to really know if they are making money or losing money. That is why I never write a policy for a new start up. The key that they rely on is that no real payments will be made for at least 90 days after a claim and longer if they manage the system. In this case they may hit the road quickly with sales because of the large pool of new buyers. They will be able to hide losses on two fronts, one being the investment money poured in the front end will make their profi & Loss statements look like they are ok and the second is the long tail on payouts, they will live on unpaid claims. That is why it takes about two years before trouble really begins to show up. Stay away from these typs unless you want to get embarassed.
Not until they are A Rated by AM Best…
What do they do when the government free money runs out?
Collect Unemployment.
These people are a joke. They may be “non-profits” but I’ll bet they plan on HEFTY salaries for themselves paid out of the insurance premiums the collect.
Agent, since you brought MAnziel to my attention, I’ve been following. What a day this kid had. He would look great in a Bears Uniform although Cutler been handling things this year.
Looking like this kid has the chance to rewrite the record books..
FFA, Manzell is good as he showed Saturday. He had Saban pulling his hair out on the sideline. It is too bad Sumlin hadn’t recruited a few more defensive players who could slow down Bama’s offense. It looks like Manzell will just have to outscore the opponents this year. A bad thing about the fast break offense is that the defense has to go back out there before they can recuperate and then they get worn down and give up too many points. I am glad your Bears managed to squeak by the Vikings. Dallas got done in by Andy Reid who is a Cowboy killer. He came in to Kansas City, replaced 30 players with ones he wanted and now they are a legitimate team. Dallas keeps doing the same things over and over and hoping for a different result. They are an 8-8 team this year just like the past two years.
I didn’t catch the F Ball game. Was back in the Dells this week end. They have their “Shut Down” sales. Officially marks the beginning of X Mass shopping for me. Unfortunately, with my wife recent surgery, could not walk the strip. One more trip up there to pull the boats and push anti freeze. I’ll get back there for new years and then again in Feb for a trip to the water park…
How enlightening and how naive! Let’s see how they do. Insurance Companies have been providing health insurance for decades and do a pretty good job. Health insurance and health care are not the same thing and that is the basic flaw in the Health Care Deform bill. Funding for medical clinics in rural and inner cities, health education programs, scholarship programs for healthcare practitioners would have been better strategies for better health care.
Agent said- “Sargeant, we have been missing you”.
Hi agent, I have been busy, traveling quite a bit. We have some large out of state customers which requires us to travel and I have been on the circuit so to speak. I have not had a chance to really been get on line for anything other than business/office email. As far as Obamacare, looks to me like even his own party thinks it is bad. When Charlie Rangel has problems with it, then it must be bad.
On that topic, I have a friend who started his own consulting practice in automotive testing for manufacturers. Mainly calibration testing etc. e received a letter from his healthcare provider (he pays for his own) who told him that his premium was going up (He has a $5,000.00 deductible per person and the premium is over $1,000.00 per month now). they directed him to the “exchange” and told him he could get it cheaper. He went to the exchange and they told him (via computer message) that they could not do anything for him on the premium that it would be more under the exchange. He is screwed for opening his own business. e said he was not going to buy any and if he or hi wife and child get sick, he would sign up immediately and get coverage because they can’t turn him down and no pre existing conditions apply.
It is a shame what honest, hard working people are going to have to do.
“they directed him to the “exchange” and told him he could get it cheaper. He went to the exchange and they told him (via computer message) that they could not do anything for him on the premium that it would be more under the exchange.”
That’s funny, because the exchanges haven’t even opened their doors yet. Another misstatement, fib, or out-and-out lie from Sarge. Surprise!
Oh Libby of little intelligence, I got a copy of his letter, went online to the site his carrier sent me, here in Michigan and plugged some info into the website and was told that due to the information submitted you will likely not have any savings under the healthcare exchange.
The only liar in the room is and has been you, my dad went to West Point, I am a broker, I lived in the hood, surf KKK websites (that one is true), I yadda yadda yadda. You are either a professional blogger or sit at a desk and burn your employers time up on the internet.
Oh, Sarge, ye of little couth. You only WISH you could have gone to West Point. You might have learned some manners. You are neither an officer or a gentlemen and I am beginning to seriously doubt you were ever in the service.
I am a broker, which means I represent my clients. What are you? Or did you miss the difference between broker and agent in Insurance 101?
Go back on the road with your “large out of state customers”. LOL! What are they? $100,000 in premium? LMFAO!
Sarge, if he is not in during open enrollment, he wont get in. If he gets sick in April, He has to wait for October to roll around again…
And, $1000 @ month for three people….. $2732 is my current monthly bill for the three of us. Been told to brace for a 30% jump.
FFA,
Right now he eats all his medical costs because he has a $5,000 deductible per person and he said the premium was over $1,000 per month (I don’t know if it was a little over or a lot). There are two people, him and his wife. So his real cost is somewhere between $12 and $17K per year and he has not been sick. Well, he is a guy that can’t catch a break. His company eliminated his whole department as a headcount reduction because of increased benefit costs (I.E ACA) Unaffordable healthcare act. They thought it was going to be sold but it wasn’t and the company is cutting costs. Rather than lean on the government to take care of him he started his own firm and as you might expect, its tough. So, healthcare costs for him eat up all of the money he is taking in. We wrote his E&O and we have not billed him for it. We may just forget it. Good people are going to suffer for bad legislation and a bad administration
Sargeant, the stories just keep pouring in each week on companies that are struggling, reducing hours, laying off employees because of this dastardly law. As reported by Michelle Malkin on her site, Sea World, Inc., Trader Joe’s, Wegman’s Grocers and even Emory Healthcare in Georgia are either laying off employees or reducing hours because of this law. It is the biggest job killer ever passed and is proven each and every week that goes by.
Yes, you are right, Sgt. Major. We have suffered as a result of President Reagan, in some part Bill Clinton, and George W. Bush. If we could get some compromise from Republicans on Capitol Hill (rather than obstructionism Senator McConnell, Eric Cantor, Newt Gingrich, and others pledged since day 1 of President Obama’s first term), we may have seen the economy improve even faster and more robust than it has.
Let’s bring the factories back to America. Let’s start buying American-made again. Roll back the Reagan-era tax cuts on the top earners, and let’s get America back to where it was before supply-side made America start to turn its side towards belly-up.
Planet, as usual, your revisionist history is full of holes. It is interesting that you go all the way back to Reagan to blame Republicans for the economic demise caused by Progressive Liberalism rampant during Clinton through Obama. The economy might have improved by now with tax cuts to “all” Americans including all Small Business. Instead of languishing at 1% growth, it would be 4-5% by now, employers would be hiring instead of laying off or reducing hours of employees. The Stimulus done in 09 was not a stimulus which proved that massive government spending was an abysmal failure and all those shovel ready jobs were not created since it was just a political payoff instead of creating private sector jobs. By the way, I hate to inform you, but increasing taxes do not create jobs. Look at any of the European countries. They aren’t having much luck creating jobs with 70% rates and massive government spending. If your employer received notice that their corporate tax rates were being increased dramatically, do you think they would hire more or cut back? Your solution is a sure fire prescription for disaster just like your administration. No wonder DC is on fire while the President fiddles.
Sarge, I feel for him. I have personally paid over $17K in OOP expenses not including premium’s. I still have about $4600 left to go and now they are talking knee replacement for my wife. Med Tec has advanced to the point where I am ready for my eye surgery (I am legally Blind in my Left Eye). That’s my motivation for selling this crap in a nut shell.
I fall behind just to play catch up. There is a light at the end of the tunnel and then I get hit again.
Captain Planet said- “Yes, you are right, Sgt. Major.”
Captain, I am right but your analysis of the US economic problems is wrong. While I have not been supportive of all of the prior presidents economic decisions I have to say that the track record for each speaks for themselves. Bill Clinton was bad for the U.S economy and he inherited his good fortune from Reagan and Bush 1. You have to believe that if you take the position that Obama inherited his bad fortune from Bush 2. Clinton, in just one example, spent about 2 minutes reviewing the sale of Chrysler Corporation to Daimler Benz. He was more concerned with Monica Lewinski (His problem at the time) than he was with 150,000 workers and 19,000 US suppliers. Look how that turned out.
As far as Obama, He has not been good for business. His economic plan is a liberal plan which is for driving up debt, driving up taxes, increased federal regulation on business, carbon taxes, increase energy costs to business, increased pollution costs and no incentives to hire new employees or set up new MFG plants.
So, right now business is hording cash s they can. They are not going to increase jobs because they can’t anticipate their future costs ie Healthcare and regulation. Jobs are continuing to go elsewhere, China in particular and Obama and his supporters continue to blame other Presidents.
The Obama strategy is, promise everything, deliver nothing and blame it on everyone else. Just watch his press conferences.
Sarge,
Let me get this straight. President Clinton has to give credit for the economy under his watch to his 2 predesessors that took 12 years to fix President Carter’s economy, yet President Obama is expected to fix the economic conditons, which were worse than President Carter’s, that he inherited from his predesessor in less than 4.5 years, or for ever how long it took for the right to say that President Bush should no longer be blamed? Is that correct?
Go ahead and apply the right-wing spin.
The reason businesses are hording cash is because it is cheap to do so. If you make it more expensive to hord the cash than spend it on expansion and hiring, I guarantee you any competent business would begin expanding and hiring. Remember, the number 1 goal of any for-profit business is to maximize profits.
Businesses will only create jobs with increased demand. Lowering corporate taxes or taxes on the wealthy who will not increase their spending, will NOT create any jobs.
Ron, you refuse to get it straight. It took Ronny right around 3 years to straighten out the Jimmy Carter mess which had a misery index of over 20%. Tax cuts to business, starting IRA’s, 401K’s, lessening overburdening regulations led to a huge increase in job creation and new taxpayers. It would have been even larger had Tip O’Neil not welched on holding down spending in Congress.
Agent,
Please provide specific data regarding President Reagan’s 3 year recovery and what HE did without Congressional approval that led to the quick recovery.
Do not forget to cite your source.
Sgt Major,
You were somewhat right but frankly, your analysis is wrong. What we have is a velocity of money problem in today’s economic world. All of the money is at the top. We need to increase demand in order for companies to hire, not give a tax cut. Why hire someone if you are supplying the needs of the consumers with the employees you already have? If more people in the middle and lower classes had some money to spend, demand goes up, and companies need more people to help them supply that demand. A tax cut in today’s world just means the company gets to hold more cash. They have no reason to spend that supplemental money on a new hire until they actually need that new hire to meet their production needs, whatever those may be.
I’ll say it again, bring the American factory jobs back home! Start buying American-made! Vote with your dollars. If you keep buying cheap Chinese crap, guess what companies are going to continue to peddle you? And, as a result, even more jobs will be lost to the cheaper labor the Chinese Gov’t isn’t ashamed to support. But, they should be:
http://www.youtube.com/watch?v=W_YnaHNcISwSimilar
Ron said- “The reason businesses are hording cash is because it is cheap to do so.”
You have got to be kidding. Were you a history major? I have been a Chairman and CEO o 2 large companies and let me tell you that hoarding cash in this interest rate environment is not what a company with a board of directors and shareholders wants. What you want to do is deploy capital (cash) where you will make the most money. that is product expansion, larger market share and more employees to service and sell the business. The reason companies are hoarding cash is just what I said above. Do you deny that Obama is increasing taxes, placing tougher environmental controls, adding business costs because of obamacare, increased federal regulation, carbon taxes?
With Obama’s actions to date, why would any business increase manufacturing expansion, full time jobs etc while not having any idea what Obama is going to do next?
Do you deny he has offered any incentives for business? If so what job stimulators has he offered? About as many shovel ready projects that he has kicked off- NONE
lastly, people who run those companies make a lot of money because they have a lot of responsibility, ownership and shareholders. If they don’t do the job the BOD replaces them. Anybody can offer their resume for the position. If they think they can handle it, they should apply. If they own the company and have put up their OWN money, it is nobody’s business what they make.
Sarge,
Correct if I am wrong, but isn’t the goal of any corporation to maximize profits? I agree with you regarding interest rates and the correct approach to capital utilization. However, it is still chepaper to hoard cash than deploy capital for expansion and hiring if there is no increased demand. That is my point. Right now the middle and lower classes have less disposable income and they create demand. We need to somehow move money to them so they spend and businesses can expand and hire more. That is why demand side economics works far better in the real world than supply side.
I have never heard of a successful business that expanded and hired just because they had extra money laying around. The first step is to identify demand for a product or service. Without demand, you are just throwing money away.
I will and have never begrudged anyone from making the most money they can, but I do believe that one of the biggest reasons why are economy has not recovered as fast as it should is that those that already have have far more money than can be spent by multiple generations are the ones who are experiencing 95% of the income gains under President Obama.
http://money.cnn.com/2013/09/15/news/economy/income-inequality-obama/index.html
Someone really needs to explain to me how he is the anti-rich President when the wealthy are the ones who are expanding their fortunes and everyone else is left languisihing.
Ron,
Answer the questions in my post.
* What has Obama done to encourage or incent business to expand growth and hire new employees?
* What job stimulators has he put forth?
* Do you believe that Obama’s actions- increased taxes, increased an abominable level of debt, increased federal regulation, increased federal cost (ACA), Increased environmental burden/cost is a strategy to increase job growth (especially non skilled job growth)and economic growth in the US?
* If you were a CEO of a large publicly traded company tell us specifically what your plan would be to use shareholder equity (money)to grow jobs without destroying shareholder value in this environment?
Oh and cite your sources
Sarge,
Nice to see that you have joined Agent and Bob in displaying poor reading comprehension.
When did I EVER make any of those assertions? I only provided data.
What is your position on President Obama’s American Jobs Act thta the House never even considered. Please be specific in your objections.
http://www.gop.gov/policy-news/11/09/13/summary-of-the-presidents
All I said was that demand drives businesses to expand and hire, not extra cash, and that the wealthy have by far faired the best under President Obama’s administration. And I did cite my source of that information.
If extra cash did motivate a business to expand and hire we would have much lower unemployment and increasing wages.
If I were a CEO, my plan would be to seek out opportunities to grow revenues where there is sufficient demand for the product or service to earn an acceptable ROI for the company. It is not that complicated. Implementing the plan is when the work begins.
You either can’t answer the questions or won’t, so you really have no specific plans just a flawed liberal strategy that would never pass a board room vote. You are good at demanding data and sources but can’t do it yourself.
Let me share a little secret- Companies already look for every new business opportunity to grow revenue where there is demand and the ROE justifies capital deployment. If they find one, even in todays economy they will take advantage of it. That is the way business works.
However, This business environment is fraught with business challenges, many of which are unknown (cost) or yet to be determined because of the actions of this administration. For example, yesterday the Fed (Bernanke) said the US was going to continue to put 85 Billion per month into the economy (buying bonds) in order to keep the economy from declining or possibly collapsing because it can’t do it on its own and interest rates will continue to stay at the current level. They are juicing the economy. That is 85 billion of taxpayer money that could be used to create jobs if the administration knew how to create jobs and work with business, they don’t.
Additionally, since people can’t make any money at a bank they are pouring it into an overheated stock market. If interest rates were to start rising, the market would have a huge pull back or possible collapse and we are back in 2009. That has an impact on every business investment portfolio in the country and even around the world. I.E. 401k portfolios, pension funding, surplus equity, bank accounts etc. If there is a big pull back or collapse then people won’t have any money to buy anything. So what business, given these conditions (especially manufacturing which is capital intensive) would expand, hire (especially unskilled labor) and joyfully spend money not knowing what the market is going to do, whether or not the Government is going to stop juicing the economy, Obamacare costs, tax increases, environmental regulation expense, etc. and have a board of directors not laugh them out of the building?
The only one I know might be venture capital deals which, if they don’t work get sold or the plug pulled and that is not going to benefit the economy.
Look Obama was a community organizer with no track record of any kind. So he is not that business bright to begin with. He is a good speaker and great at making promises that he doesn’t deliver on (remember shovel ready projects? which we still have not seen one). I don’t expect him to be Warren Buffet but I would think that he would call on business leaders to help him and he hasn’t. All he has done is demand and support a liberal social agenda.
Sarge,
I answered the only question for which I had an anser. I
Exactly what data do you want me to provide? I never made any statement that should be supported by data without citing my source.
What is my liberal startegy? That I believe demand is important when considering expansion and hiring?
You said, “Let me share a little secret- Companies already look for every new business opportunity to grow revenue where there is demand and the ROE justifies capital deployment. If they find one, even in todays economy they will take advantage of it.” That is exactly my point. Thank you for agreeing with me. The problem in today’s economy is that those who are experiencing increased income are not increasing demand. They are hoarding or investing the cash. We need to find a way to get more cash in the hands of those looking to spend so demand goes up.
The business environment will always have uncertainty because economic conditions are constantly changing regardless of who is President. The country has seen great and poor economic times through Republican and Democratic adminisrations alike.
I am still waiting for your opinion on President Obama’s American Jobs Act.
Sarge,
You said, “I have been a Chairman and CEO of 2 large companies”. So you are no longer a Chairman and CEO? What happened?
I decided to retire and started my own Managing General Agency. If my children don’t want it I will sell it, bank the money when I retire. Tough at first but great organization now and I don’t have to worry or deal with investors or shareholders.
“I decided to retire and started my own Managing General Agency.”
So you are not an Independent Agent like you have been saying? Misstatement? Fib? Out-and-out lie? You be the judge.
Libby- Oh IDIOT MAXIMUS,
That is an independent agency, LOL, LOL!!!!!!!!!!! That may be your best stupid comment yet!!! Keep them coming!!!!!!!!!! HaHaHaHaHaHa!!!!!!!!
Sarge – an MGA is NOT the same thing as an Independent Agency, unless you don’t know the difference between the two. An MGA is a BROKER that holds the pen for one or more carriers. You are quite obviously new to the insurance business.
Libby – MGA’s are independent agencies. Typically two divisions Retail – sells toy average Joe on the street and then Wholesale – comes to guys like me wanting to place business to markets they have that I don’t. I have a bout 20% of my business through MGA’s.
FFA – that is not what an MGA is. An MGA is a Managing General Agency, which means they have the pen and can underwrite, price, and place business directly with a carrier. They are a broker or wholesaler and do not sell retail.
There may be a retail division within a company that also operates as an MGA, but that is not what Sarge said. He said he is a partner in an MGA.
I have worked for both, so I know.
Planet,
My analysis is right. Do you believe that Obama’s actions have been business friendly? Do you think that business should just expand and hire in this economic environment- Acutely high US debt, A high potential for a government shutdown, higher taxes, higher employee costs (I.E. Obamacare), tougher federal legislation, tougher environmental controls etc? Do you actually believe that a business with shareholders (people you are responsible for)wld forgo their dividend checks in order o make poorly calculated decisions just for the sake of expansion? Tell me what business generators or incentives Obama has made to get business to expand and hire more employees? NONE.
So you want to take more money from the top. Well, they already pay 80% or more of the tax bill. Even Bill Maher thinks it is to much. How about having the 50% that pay nothing pay something, like 10 or 15%. How about working to get the 48% of people off of government entitlements? Obaa talks about retraining and job redirection and what has he done? Nothing.
So Planet you are good at broad generalization, what specifically should be done to generate jobs given what Obama has done to the business environment? Oh, and provides the metrics. I think that is what the libs like to say.
Let’s see – Under President Obama:
Businesses are making record profits, Wall Street has set record gains, the rich are richer than they ever have been (Reaganomics has led to the largest wealth gap in the history of the world), and consumer confidence is higher than it has been since 2007. Yes, I’d say President Obama’s actions have been in the interest of business, Wall Street, and the rich. It’s certainly a knock I have on the guy. Instead, he should be doing more for the job creators. You know, the middle and lower classes who spend about 100% of their income on services and goods provided by business? Middle and lower classes increase demand, THEN the business hires more employees – hence, job creation.
Planet, nice lib rhetoric.
Just answer the questions in my post. Or don’t you have any answers?
As far as the lib rhetoric, not all of what Obama has done has set in yet including Obamacare, taxes and all of the Fed regulations. That is the unknown. So business is not expanding. They are putting up reserves (hoarding cash) because they do not know what is coming with the actions the Obama administration has taken or what the impact will be on their business. That is smart business. Consumer confidence? Last night a new Gallup poll (I believe was Gallup) showed consumer confidence down. It also showed that 60% of the country is now negative and against Obamacare and certainly the handling of the Obama administration. It also showed that Obama’s approval rating is at 28%, lowest during his tenure. Newsweek’s cover (not known to be conservative Has a picture Of Obama and the caption- “Hit the road Barack”. Obama’s own party has spoken out against Obamacare and just this morning Rite Aid Pharmacies announced that they will no longer provide healthcare for employees They will give them a check and they can buy their own. Why? they said they could not afford the increased cost of Obamacare. Even the unions including the longshoremen now oppose Obamacare, all 140,000.
As far as Wall Street, invest how you like, but the market is overheated. The reason they continue to gain is that there is no where else for money to go since interest rates are poor and many individual investors do not know when to exit the market. Remember, 2009?
Ron said- “I am still waiting for your opinion on President Obama’s American Jobs Act.”
My opinion, it is a joke. It is a tax and spend proposal. Obama’s own party did not like it. Harry Reid held it up in the Senate citing the need to address “Chine trade bill first”. Even Harry is not that stupid.
Here is a good read for the act
http://www.thefiscaltimes.com/Columns/2012/09/11/Obamas-Jobs-Act-Not-Just-a-Failure-but-a-Fraud
Libby said-“an MGA is NOT the same thing as an Independent Agency.
Well Libby, I beg to differ. We are an independent agency. We are independently owned (Me and the rest of the partners which you don’t understand either). We run our own business, hire our own staff, make our own payroll, pay our own taxes and expenses. We contract with carriers we want to contract with(just like a retail agent)and we sell and solicit business. No carrier has invested money in the agency. However, we do have additional responsibilities that a retailer does not. We bind and issue policies on behalf of the carriers (we have more than one carrier. In fact we do business with over 50 carriers), we appoint agents who submit business to us and we service and have settlement authority up to certain levels for claims and we get paid for providing that service.
Additionally, we have a retail insurance department which functions as a retail arm for the placement of retail business.
I am glad you went to Wikipedia for the definition of an MGA but LOL you made my day with that idiotic remark. You are the one that is either are new to the business or don’t have a clue. I bet the latter. HA HA LMAO!
You don’t need to explain the difference between an MGA and an Independent Agency to me, Sarge. You’re the one that “retired” after being a CEO for two corporation and then opened an MGA. So you are obviously NEW to the insurance business.
I have been doing this for 33 years. You may be an independent business owner, but you are NOT an Independent Agent. But I’m glad I gave your ignorant ass a chuckle. You sure are easily amused.
Because you disagree with my politics, you try to humiliate and berate me every chance you get. You sure are a big man, Sarge.
Libby,
You are the first to jump on someone that has a different view than yours. You are the first one to call them names, cuss them, try to berate them. Just go back thru the blogs on any given day when you are on. Which is everyday and all day most of the time. Then because your not that smart, you make yourself look stupid and then humorously try to recover and blame someone else, cuss them like above or make up an excuse. LOL You act like you have been “doing this” more like 33 minutes!
So if I don’t have an independent agency what is an independent agency and explain the difference? I can’t wait for your answer!
BTW, I had to explain it to you because you had no idea what it was, just like you never figured out that “partner thing” Your the ignorant ass HAHAHAHAHAHA!
Sarge – Don’t think yourself morally superior just because you think you don’t “cuss”. You take low-blow pot-shots at me all the time and have used foul language as well. You’re a little man that likes to put down women to make himself feel better about himself. I called you on it and you can’t stand it.
As for being an ignorant ass, at least I know the contraction for you are is you’re and not your.
And if I have to explain to you the difference between an MGA and an Independent, then you don’t belong in the insurance business. But I think that fact has already been established. LOL!
First, your a moron, not smart, have a big mouth and most of the time it is a waste to give you any time at all.
But besides that, if you don’t want someone to take “pot shots” don’t give them a reason. Act like you are the professional you say you are and not the jerk you act like with anyone you take an argument with on this blog. That is the jerk that you act like with anyone you don’t like on IJ me or anyone else. Act like a professional and you will get treated like a professional. Act like a jerk and you will be treated like a jerk
“First, your a moron, not smart, have a big mouth and most of the time it is a waste to give you any time at all.”
And I’M the jerk here?
You, Sarge, are the one that started this battle by insulting and slandering my father, a war hero that died for this country. And even though I apologized to you when I went too far one time, you have yet to apologize for that.
If and when you apologize for your disgusting remarks about my father and his service, I will treat you with the respect you will have earned. But not until.
I love these afternoon soap operas. Do any of you actual work?