Monday, December 01, 2008

Doesn't it seem

That every time our President-elect talks or one of his minions talks that the market takes a dump! I don't have any positive proof, so if I was like the lefties I would just say it was so and make every one believe me. You know, you say it over and over enough times then it has to be true! That kind of sounds like the definition of insanity doesn't it.

Okay, let me set this up. I work in the RV industry. The company that I work for sells heating systems that heat the coach and gives continuous hot water to the customer. Needles to say, out product is not cheap. We usually sell a system retail for about $7000. To an OEM (Original Equipment Manufacture) , these are the guys that build the motorhomes, we sell somewhere around $3500. This puts us in motorhomes that cost over $250,000. So we are in the high end market of the industry. If the industry has a down turn like what is going on right now, usually we don't see too much of a hit. But ever since our beloved leader-elect started spouting off that he was going to start taxing people making over $150,000 a year, we started to see a complete collapse of the RV market. I am not saying that he is completely to blame, a lot of the problem is that banks have pulled out of the lending business in the industry. We have manufactures that were stable a year ago, closing their doors today. Nobody is selling right now. The banks are the problem for the average coach. Like I said, the lower end of the market doesn't usually bother us. But where we get hit, is when wealthy people think they are going to have to come up with extra money to pay taxes. The first thing that goes out the window are luxury purchases. These are the very people that drive our side of the market, and by saying he is going to tax them, takes money out of my pocket!

I would rather get an order from a manufacture for a year or two years worth of furnaces, than to get a one time check from the government. When we look back at policies that the government had put into place we get a clear picture of those that work and those that don't. Raising taxes never provides what those that raise taxes thinks it will do. During Reagan's terms he lowered taxes and created over 20 million jobs. Increase even in the coffers of the government. Create more taxpayers is the way to get more taxes, you don't tax the ones you have into oblivion.

I am currently here in Louisville, KY at our annual Industry show. There just isn't much on the horizon that looks good. I may have to find something else to do. And I do not want to do that. I love what I do, but sometimes you just got to adjust! So we will see.


Anonymous RT said...

First, I'm praying for you all...have been for a while (even if you have to make an unwanted change).

Second, I thought my eyes were playing tricks on me...two new posts! :) Heh.

1:13 AM  
Blogger Libby said...

hey, sssteve!!~ (unfortunately, it isnt $$$teve!)
even regular cars arent selling now, just for 'regular people'!! my daughter worked for a toyota dealership when she got married nov back from their weeklong honeymoon in aspen...was let go the next day!!

10:46 AM  
Blogger Ssssteve said...

RT, appreciate it!

Lib, that is just not right for your daughter. I hope she finds something soon!!

7:30 PM  

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