Laketa follow up

In follow up to Midas' post below. You can tell it's election time in the city.

Just this past weekend I was all set to post about the lack of substantive stupidity on the part of Cincinnati City Council candidates.

I guess I was premature.

I am absolutely amazed at the lack of understanding of basic economic theory by politicians. So I'll explain to Laketa how this works since the public schools failed to.

First Laketa, businesses open in an attempt to make a profit. No business ever opened with it's eyes on improving the community. If someone was into that, they don't open a business they become social workers.

Second, businesses rarely close because they are profitable. If there was a buck to be made in that part of town, someone would be there to make it.

Third, profits are a combination of sales less expense. In the area of town this Aldi's store was located, there may have been tremendous demand for products from this store but there are also incredible expenses that stores don't have to face in the 'burbs. These include, extra security, increased theft, lack of a qualified work force, taxes that are double the suburbs, etc. etc.

Most grocery stores work on a 1-3% net profit margin meaning that on a $100 sale they might make 1 to 3 bucks. If someone steals $100 worth of goods from the store, you need $1000.00 worth of sales just to get yourself back to break even.

I'm actually a little sick and tired of politicians catering to this type of rhetoric. If Ms. Cole was a true leader she would take the time to educate the people in the neighborhood of what it takes to create a positive business culture.

Instead we get this playing down to the idiocy of the populace and, as a result, businesses just decide it's not worth operating in a city that would rather line up with ding dong and derelicts instead of their businesses.

We all operate in a cost/benefit principle in all aspects of life; marriage, where we live, what we buy, etc... Businesses are no different.

Until local politicians do the things necessary to welcome businesses to their community, they will continue to be littered with JD Byrider and check cashing stores.