I recently saw a local merchant close his doors after only one year of operation. I don't want to get into the type of business he was in, but suffice it to say it could have been successful had the proprietor tried a little harder than he did. Instead, he chalked the defeat up to the recession and simply walked away from the business without clearing out his shelves and equipment, or paying his bills. In fact, his mail piled up at the door unopened, and creditors hounded the landlord to let them in the building to retrieve their unpaid equipment. What I found most interesting from this experience though, was the proprietor's attitude who couldn't have cared less. He wasn't the slightest bit embarrassed, apologetic or ashamed of himself. In fact, if you talked to him, you would get the impression that everything was great and he had no problems. He literally just walked away from the company leaving behind a pile of bills and stiffing his creditors.
As a Floridian, this attitude is not exactly uncommon and we have seen many people happily declare bankruptcy at the expense of others. We have some of the most liberal bankruptcy laws in the country. One moment a guy is declaring bankruptcy and leaving his creditors in the lurch for considerable sums of money, and the next moment he wants to be their best friend in a new venture. There is no guilt, no shame, no embarrassment. And I guess I really don't understand this attitude. I don't care if he has a tune on his lips or a song in his heart, a deadbeat is a deadbeat.
I don't consider someone a deadbeat if they have failed in business, yet want to genuinely make amends for their actions. A deadbeat is someone who feels no guilt in abusing the system to his advantage. Even a beggar has honor if he acknowledges his own deficiencies. In contrast, a deadbeat is only interested in one thing, himself. He has no concern for his employees, his vendors, or his customers. He just moves along to his next scam.
I don't know where this mindset originated from. Years ago, declaring bankruptcy would be considered a scarlet letter in society, but it's not like that anymore. Now, people are congratulated for outfoxing the system and leaving a trail of debt in their wake, regardless of the people hurt along the way. Is our society so perverted that we applaud bankruptcy as opposed to success? I'm sorry, I just don't get it, and most likely never will.
Such is my Pet Peeve of the Week.
Keep the Faith!
Note: All trademarks both marked and unmarked belong to their respective companies.
Tim Bryce is the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com
For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm
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http://www.phmainstreet.com/voiceph.htm
Copyright © 2009 by Tim Bryce. All rights reserved.
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Comments: 4
Look at the big companies who can not stand on there own two feet, then get government money - welfare.
What is the difference I guess?
Never been through it myself, hope I never have to feel that is the only choice I have.
1. What ever happened to personal responsibility
2. Didn't the teachers or parents tell this guy anything about the morality of not paying back debts? Did he ever take personal finance education?
3. Before this guy started his business,
a. did he have a business plan?
b. did he have ample capital to last his business for more than a year
c. did he evaluate the risks inherent to starting a business
d. was there any bailout money involved?
e. did he buy stuff for his business he had no business buying?
We think we know the answers to these questions, but the sad thing is that he's not alone in doing this. For everyone like him, there are tens if not hundreds of businesses that just close up the doors in a matter of few years.
The economy there was greed-driven. Landlords killed their own golden goose. I grew up in that town when the same shops had been in business for decades. Around 1980, the town suddenly became the haven of yuppies and was the place to live. Home prices skyrocketed. Now, the stores are empty and those homes can't be sold at any price. We were lucky to sell just in time. I hate to think what would have happened had we not sold when we did.
Bankruptcies among responsible, hardworking people are very common in Michigan now and it is a source of horror and shame. I know of several families who are in this situation. These are not irresponsible spendthrifts. They are hardworking people who paid their bills on time, did volunteer work, gave to charity and supported their churches.
Michigan's economy has long been dependent on the automakers. GM is bankrupt, others are cutting back and laying off. Our unemployment rate is now at 17% and people are losing their homes. Some have been forced into bankruptcy by the irresponsible conduct of people like the deadbeat you've mentioned in your post. I believe there are more bankrupt people that I don't know about, simply because they are embarrassed and hope to keep it quiet.