What Kind Of Recession Is This?

Now Hiring People that Show Up - Miller on the MoneyWhen we left Phoenix for vacation there were “Help Wanted” signs everywhere. Most retail stores were clamoring for help. Restaurants had entire sections of unused tables because they couldn’t get help to take care of customers. Retailers complained about delivery dates; vendors couldn’t get help to keep up with order demand.

It’s the same here in Indiana. Our youngest daughter owns a small trucking company, and they are scrambling to find drivers. Many work for a short time and quit saying they don’t like getting up so early in the morning, or some other lame excuse. Are they living that comfortably on unemployment?

I’ve seen photos of the Great Depression; hundreds of men lined up looking for a job…any job…so they could feed their family.

What the heck is going on?

The Fed is raising rates. Historically this slows business growth as the cost of capital increases, mortgage rates rise affecting housing sales and new construction.

With less money to spend, consumer demand decreases along with inflation. Fed Chairman Paul Volcker provided a textbook example during the Carter years. People lost jobs, the economy suffered, and inflation was brought under control. The economy rebounded, and we had good times for a couple of decades.

Current score card?

Pundit Bill Bonner’s column Strike Three makes it simple:

“And so…the strike-out is complete…

Strike one: real wages are going down…

Strike two: real GDP is going down (US in recession)…

Strike three: Real productivity is going down….

And you’re out!”

Bill supports his claims – it’s scary when you look behind the curtain. Why all the “Help Wanted” signs?

I contacted our friend and expert Chuck Butler, editor of The Daily Pfennig. (It’s free and a daily must read) Chuck analyzes the data from the Bureau of Labor Statistics regularly and tells it like it is.

DENNIS: Chuck, once again, thanks for your time in helping educate our readers. In my recent column, What is normal? I pointed out in a normal economy, interest rates for both lenders and borrowers are above the inflation rate. Today – not even close!

Technically we are in a recession, but we are seeing “Help Wanted” signs everywhere.

Chuck, you analyze each week’s unemployment reports, what are they telling you about what is happening in the labor market?

CHUCK: It’s a crazy mixed-up world we live in these days, Dennis. Just last week we saw the Bureau of Labor statistics (BLS) print a 528,000 jobs created number for July…. But looking under the hood, I found that 340,000 of those jobs were created out of thin air by the BLS (they made up the number). That leaves only 128,000 real jobs created in July, and that would look like it should.

Each Month the BLS reports that 4.3 million people quit their jobs. I find this to be quite telling of the labor markets these days.

The pandemic, and subsequent economic shut down, has created a country of people that won’t work for minimum wage, won’t work long hours, and won’t work in an office, or restaurant, or retail store, etc.

That’s why you see so many HELP WANTED signs, people just don’t want to work any longer.

The Weekly Initial Jobless Claims have been ratcheting up in recent weeks and is beginning to look like it will explode higher very soon.

So, to sum it all up…. The employment situation in this country isn’t as rosy as the BLS or the Gov’t want us to believe it is. And all signs point toward very weak employment, during this recession that we are in.

DENNIS: Our friend John Mauldin suggests:

“In 2008, the oldest Baby Boomers still hadn’t reached age 65. Now, most have, or are close to it, and some retired early due to COVID concerns. Subsequent generations aren’t big enough to fill the gap, hence the labor shortage that is keeping unemployment low. That could persist even with weaker business activity and consumer spending.”

Wolf Richter adds:

“Many folks, including the Fed, are now suggesting that the old normal labor force may never return, that there were permanent changes in the labor market that we’re just now trying to figure out.”

I ask everyone who complains about lack of help, why is this happening? They all say the same thing, “The government is paying people not to work?”

What is your opinion? If real wages are down and the production sector is laying people off, how do people feed their families and maintain a reasonable lifestyle?

CHUCK: That’s a good question Dennis… I’m afraid for the people that did not save during the last expansion of the economy. A recession is not a bad thing, really… It cleans out the excesses of the previous boom, that in our case has lasted way too long. But because of the zero percent interest rates, and currency printing that the Fed did, the Boom economy lasted longer than it should have. So, the American people should have been saving/investing all during that time that the economy was booming.

If they didn’t, well… like I said above, I’m afraid for them, because this is not going to be a quick and done recession, in my opinion.

Dennis, many will be looking for more stimmy checks. If that doesn’t happen, people will not be able to feed their families and maintain a reasonable lifestyle if they haven’t saved/invested and built a nest egg to draw from in the coming months. It will be interesting, and perhaps sad, to watch it play out.

DENNIS: Wolf Richter discusses how the reduction in gas prices is helping to reduce inflation:

“The spike in gasoline prices motivated Americans to go on a buyers’ strike.

…. Consumers are resorting to all kinds of tricks to put a lid on their gasoline expenditures: Drive a little less, take it easier with the gas pedal, cut out unnecessary trips, plan shorter road trips, prioritize the most fuel-efficient vehicle in the garage, use mass transit, etc. These are behavioral changes.”

While those who feel they are saving the planet are probably delighted, I told my daughter “Prices are coming down for the wrong reasons”.

In most working families, both spouses are working. Having raised four children, the summer family vacation road trips gave mom and dad more than a break from their job. They strengthened the bond in the family unit. Summer vacations made memories that last forever. Our family had a few “Chevy Chase” moments.

If high gas prices are causing families to not take those types of vacations, that is a hidden cost with long term implications. If people are only driving out of necessity, as opposed to recreation, that is a drastic behavioral change.

Are you seeing any evidence of the “behavioral changes” he mentions?

CHUCK: I’ll tell you a story here that relates to what you’re talking about… In 2003, I bought a pop-up camper, with all the bells and whistles, and used it for our annual family camping trips.

After I was diagnosed with cancer in 2007 and had my subsequent surgeries, I was no longer able to go camping. My kids still wanted to go camping because they really enjoyed it.

My daughter, Dawn, took control of the camper, and they have used it since 2010. Last week Dawn called to tell us that they needed to get rid of the camper because they couldn’t afford to use it any longer. The gas their truck used to pull the camper had gotten too expensive, the camp site prices were going higher, and so on….

So, yes, I’ve seen behavioral evidence, in my family! It does not make them happy to have to make that kind of decision.

DENNIS: One final question. The stock market is reacting as you would expect in a recession, yet things are different.

I’m down in several investments, still collecting dividends, and feel “this too shall pass.”

What advice to you have for investors trying to protect their net worth?

CHUCK: Dennis, thanks again for the opportunity to share my thoughts with your readers.

For most of this year, stocks have not been a good place to put money, other than to gain dividends. One would call stocks this year as being a Bear Market. You can have what’s called a “Bear Market Rally”, a slight upswing before it continues down. Nearly all Bear Markets in history had a “Bear Market Rally”….

The average stock market gain during a “Bear Market Rally” has been around 23%…. That’s where we are now, so to me, if history tells us anything, the “Bear Market Rally” is just about over, and then the Bear Market returns….

For investors that like to think that they can “time a market”, they are fooling themselves.

And to make one more point here…. I don’t believe the Fed is going to stop their rate hikes just yet, so more damage to the stock market should be in the offering.

Dennis here. I agree with Chuck. While the government is passing a huge, “Inflation reduction act” it is a joke. It’s primarily political payoffs and politics that will increase the deficit and inflation.

I’d urge readers to be very cautious when it comes to the market. They may want us to believe the recession will be over quickly. A short market upturn may sucker a lot of investors. Trying to time the market and buy in at the bottom could be a costly mistake. Be patient!

FREE: A 7-Step Questionnaire – Am I A Candidate For An Annuity?For more information, check out my website or follow me on FaceBook.

Until next time…

Dennis

www.MillerOnTheMoney.com

“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken

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77 Comments
brian
brian
August 25, 2022 12:33 pm

My daughter manages a small clothing store and they cannot get or keep employees… of any age.

Because its a ‘trendy’ shop older persons mostly have no idea of ‘fashion’. The millennials don’t want to work, show up or care about their jobs. The younger, genz and whutevers, will show up 2 maybe 3 days of the week and hide… either looking at their phones and avoiding customers or whining they are required to go thru racks etc… They, the daughter and her boyfriend the owner, end up working longer hours, took pay cuts to give to employees to hold them. Still to no avail…

Its all coming down… When these dipsticks don’t have any money to pay for their data plan, groceries and rent… will be a fun day… for us, not so much for them…

Iggy
Iggy
  brian
August 25, 2022 12:52 pm

Please you could work 80 hours a week at these jobs and still be homeless and barely able to survive.

Iggy
Iggy
  Iggy
August 25, 2022 1:16 pm

Rent in NW Indiana has gone through the roof.We are being flooded by niggers,spicks and foreigners wholive 10 plus to an apartment .The Indian and Chinese College students plunk down a years rentup front so the fucking Jew rent seekers ratchet up the rent every year

Anonymous
Anonymous
  Iggy
August 25, 2022 1:49 pm

Plus all of the refugees from Illinois fleeing the high taxes

Anonymous
Anonymous
  Iggy
August 25, 2022 6:18 pm

We are being flooded by niggers,spicks and foreigners wholive 10 plus to an apartment

Try that with ten or more of your white friends and your landlord will be getting a visit from the State. You’ll be evicted before you’ve decided who’s going to sleep where.

It’s a privilege the state affords only to certain persuasions. There are actual laws on the books against having more than (usually) four unrelated persons in the same household/apartment.

Glock-N-Load
Glock-N-Load
  Iggy
August 25, 2022 2:35 pm

Why the downvote? Is Iggy wrong?

cS
cS
  Glock-N-Load
August 25, 2022 2:44 pm

“Why the downvote?”

because many people have no use for the truth. they prefer their old comfortable self-serving narrative.

The Orangutan
The Orangutan
  Glock-N-Load
August 25, 2022 5:40 pm

I downvoted “Please you could work 80 hours a week at these jobs and still be homeless and barely able to survive” but not the 2nd Iggy comment. Why?
1. “these jobs” are stepping stone jobs paying minimum wage and are not supposed to be careers. They weren’t in my day and they aren’t now. Gain work experience, move up the ladder and/or move on. Yet..
2. 80 hours a week at min wage of $14-$15/hr (Canadian “brian”?) is almost $60k/yr. Not great, but hardly “homeless and barely able to survive”. You could be a young adult sharing accomodations with other young adults and easily feed and clothe yourself. Heck, I shared rented accomodations and didn’t buy my first house until I was in my late 30’s. This was back in the 90’s when times were good. When there’s a will, there’s a way. Problem with today’s young’uns is – there is no will. I see that EVERYWHERE now.

brian
brian
  The Orangutan
August 25, 2022 6:03 pm

I fully agree… Orangutang.

Todays mindset is that all these lamers think they should be CEO’s. Sit behind a desk and view tictoc vids or some other social media rot. Work ethic and self esteem have long been destroyed and trampled by the communists.

If a person cannot live on 60K a year… then you’d better have a look at your money bag cause its got some massive holes in it. That and come to the realization that NOBODY owes you a thing and you are not some royal shit where people bow and cater to your every whim… wake up douche bags… life is coming at you like a skydiver with no parachute… ground rush is about to wake you up…

VOWG
VOWG
  brian
August 26, 2022 5:38 am

What are the taxes and other withholding on 60k a year? Is rent in the area $2000 a month plus utilities. Can one get to the job with or without a car. Medical insurance? 60k is damn near at the poverty line these days in some states and cities. Governments have destroyed the value of that which we work for. What’s that saying, “the government pretends to pay us and we pretend to work”.

Anonymous
Anonymous
  The Orangutan
August 25, 2022 6:19 pm

Honorary boomer.

Svarga Loka
Svarga Loka
  The Orangutan
August 25, 2022 6:39 pm

80 hours a week? Have you ever done that? I have. It’s brutal.

Frank
Frank
  Svarga Loka
August 25, 2022 6:59 pm

Got assigned to a new IT team, that was made up of all new hires. I spent 8 hours a day teaching them how to get things done – where are the code libraries, how the development process works, and cleaning up the newbie spills made while they were learning. Then I worked 8 hours a day, after they left to go home, doing my own work.
Got everyone up to speed, and a few years later got laid off.
I was going through a liter bottle of Mt Dew every day, and my teeth paid for it for a long time afterwards.

Freddy Uranus
Freddy Uranus
  Frank
August 26, 2022 6:40 am

A liter of Mt Dew every day? How’s your diabetes?

Frank
Frank
  Freddy Uranus
August 26, 2022 7:45 am

It lasted about a month, then I was able to scale it back down to 4 or 5 cans a day. For some reason only the teeth were affected, the rest of me stayed healthy. Now retired and only drinking filtered water.

Anonymous
Anonymous
  Svarga Loka
August 25, 2022 7:03 pm

It’s not bad even for real labor, but it means it’s almost impossible to spend enough time to save money on all the little things like food and cleaning and health, let alone family.

At some point you have to wonder if you’re just a slave if you aren’t gaining anything.

Thunder
Thunder
  Svarga Loka
August 26, 2022 5:02 am

I’ve done 60hr/week for 25weeks, but throw in the travel to and from and brutal is
an understatement. My feet have suffered to this day

VOWG
VOWG
  Svarga Loka
August 26, 2022 5:39 am

Did 70 a week for many years, it was a hell of a lot more profitable than 60k a year.

Elvis Lives
Elvis Lives
  Iggy
August 25, 2022 9:20 pm

If someone can work 80 hours a week and not pay their bills, it’s not the system that’s broken. It’s a lack of interest, skills, work ethic or ambition. Not everyone can make six figures as an Instagram superstar or professional gamer.

Anonymous
Anonymous
  Elvis Lives
August 26, 2022 10:20 am

If someone can work 80 hours a week … It’s a lack of… work ethic or ambition.

Have you recently suffered head trauma, or were you born this retarded?

cS
cS
  brian
August 25, 2022 2:51 pm

” When these dipsticks don’t have any money to pay for their data plan, groceries and rent” …

… the government will. meaning you. it won’t be all that fun.

brian
brian
  cS
August 25, 2022 4:13 pm

I don’t pay taxes… haven’t for years

Anonymous
Anonymous
  brian
August 25, 2022 6:25 pm

If you’re complaining about how people won’t work hard anymore, then please share with us who are willing, how to make 60k a year working hard and not pay taxes. Not all of us have the know-how.

Anonymous
Anonymous
  brian
August 26, 2022 10:42 am

Hey, I wasn’t being snarky. Please let us know how to do this.

SaltyOldCracker
SaltyOldCracker
August 25, 2022 1:19 pm

Just a few days ago I made a dinner date with my parents. (Haven’t seen them much lately as they are leftist democratic loons.) We walked into a Chili’s® around 6:00 pm and the place was around ¼ full. Lots of empty tables. Yet we were told that it would be a 30 to 45 minute wait to be seated. WTF!?! Was told that there was a shortage of wait-persons. OK, I get it, good help is hard to find these days, but I didn’t see anyone working who was older than about 25. So the franchise owner and/or manager apparently didn’t care enough to show up and work tables themselves.
What are these people thinking? A restaurant (especially a franchise with franchise fees) cannot last long at ¼ capacity on a Saturday night. They apparently don’t give a fuck. Neither did I, we went elsewhere and spent a couple hundred dollars on a nice evening…

bidenTouchesKids
bidenTouchesKids
  SaltyOldCracker
August 25, 2022 1:41 pm

Seems most businesses don’t care about earning money. Been looking to get work done on the house; most don’t even respond and act like you’re bothering them. Guess money must be good if you can ghost customers.

Iggy
Iggy
  bidenTouchesKids
August 25, 2022 2:01 pm

They only want a job the can make 10k or more on .

Ken31
Ken31
  bidenTouchesKids
August 25, 2022 4:47 pm

Since we just moved here, I thought it was more of a local problem. I have several businesses that have ignored my repeated attempts to give them business. Our church can’t restock bible study booklets because the company won’t respond, I can’t find a well digger or plumber, I have implements on infinite backorder, our surveyor is MIA, nobody wants to rent me a construction dumpster, etc. etc.

Guest
Guest
  Ken31
August 25, 2022 8:02 pm

Here too. They just don’t answer their phones.

Doofus2
Doofus2
  Ken31
August 29, 2022 12:17 pm

Around here well drillers are booked 6 months out minimum.

Iska Waran
Iska Waran
  SaltyOldCracker
August 25, 2022 1:51 pm

Nothing makes sense these days. A lot of restaurants close @ 8 PM these days. WTF? The other day I went to White Castle drive-through at 9:55 PM (it had been a couple of years) and they were closing. I don’t think I’ve ever been to a White Castle BEFORE midnight. There a new trendy arugula pizza place nearby that is open (I think) Wednesday through Sunday from 5:00 PM to 9:00 PM (8:00 PM on Sunday). Asian restaurants (hard-working immigrants, right?) close at 8 PM. It’s like the consumer has to beg merchants to take their money. I think part of it is that life is so boring that people are becoming foodies. They don’t go to a bar and see a band, so they go to a fucking tapas bar. If I ever pay $20 for a scallop, somebody please shoot me dead on the spot.

Restaurants and retail stores have to pay $15 (which costs them about $19 / hour including employer’ side taxes, etc) to get some teenager to show up and pretend to work. I feel like I can’t afford to go to Arby’s.

Anonymous
Anonymous
  Iska Waran
August 25, 2022 5:46 pm

Everything makes sense. This was always the plan. This is how inflation works. The lowest rung on the wage-earning ladder gets hit first, and hardest. There’s a limit to how much a person will work while still being unable to make ends meet.
Will they look for their “stimmies”. Sure. Also part of the plan.
It will creep up the income ladder both because inflation will continue (and get worse) and because of the feedback loop as employers cannot afford to pay the lowest wage earners enough to live and so go out of business themselves. Then, the feedback cycle keeps churning ever upwards on the income ladder.
The former managers and small business owners will briefly try to do those jobs that they couldn’t find workers for, … and then it will dawn upon them, …
and they will think “how could anyone have ever lived on this?”.
They’ll think that because they have much higher bills to pay than the employees they formerly mocked as lazy.

On it will go, swallowing what’s left of the middle class whole. Then it will begin to impoverish the lower tiers of the upper class. The investments of those who have them will start tanking because of that feedback loop and “Savings” (whatever those are) will be eaten up overnight.

When Congress has to impose a moratorium on property taxes because they’re so hyper-inflated that no one can pay them, … will you take the “stimmies”?

I’m betting that everyone here (and everywhere else) will.

We’re in the end-game now, kids. There isn’t another “everything bubble” for the Fed to blow. This one’s for all the marbles to bring the system down and replace it with their new one.

Svarga Loka
Svarga Loka
  Anonymous
August 25, 2022 6:48 pm

Among the most astute and sobering summaries posted recently, thank you.

Guest
Guest
  Anonymous
August 25, 2022 8:06 pm

Exactly. This is what I was trying to say, but badly.
I would add they’ve been working on small businesses for awhile. Also psychologically especially on the young. That’s why I’m surprised and happy of what I see concerning millennials.

Thunder
Thunder
  Anonymous
August 26, 2022 5:26 am

Correct, inflation eats everything …savings, retirement, hope, business plans, banks, health ect and it is voracious and pitiless. It destroys nations will and gradually exhausts all working capital until even credit is exhausted.
This is truly the end game when I see England has 10.1 % (cough) inflation rate and the BOE has 1.75% base rate …. in 7 years and you lose half your savings and everything just cost, not 10.1 % but 14% each year (given a static 10.1% IR)
How far will your pay-packet go if your hand to mouth now.
Prepare for something called a perfect storm of Financial distress because the Central banks are slow walking everyone off the plank

Anonymous
Anonymous
  SaltyOldCracker
August 25, 2022 2:00 pm

So where do you live? The local business environment, location and staff makes a difference. A working business model has to have invested owners and employees who actually care, especially in a low profit margin sector where customers are willing to spend money elsewhere – if they have the financial means to pay.

There’s a place in Jersey near where I live that’s literally PACKED – all the time. It’s family-owned and the guy who owns it has actually expanded. It’s called “Tommy’s Tavern and Tap”. The Golden Corral next to it went out of business, and you can’t find a Subway or Quizno’s franchise within miles, but Quik Check and Wawa is everywhere you look. A “trendy” hip place was built locally and it’s practically dead with an empty parking lot. The only places to eat are lousy Chinese take-outs and pizza joints, but if you’re Hasidic and buy kosher, there’s no end to local choices and specialties from New York shipped by trucks.

Some of these places are making their profit from a crowd that’s willing to pay the prices for beer and beverages along with the food, like “Tommy’s” – and it has everything to do with WHO, and HOW MUCH they’re willing to pay for a certain item and service.

Ken31
Ken31
  Anonymous
August 25, 2022 4:53 pm

The only local restaurants around here that survived are the ones that were the cream of the crop and practically institutions. More food trucks have cropped up, though.

Hans
Hans
  SaltyOldCracker
August 26, 2022 6:47 am

Wifey and I go to Door County Wi couple times a year. Very, very touristy, but there are a few businesses that are only open a few days a week. They cannot get help up there. A few restaurants actually import college kids from Europe to work there in the summer.

mutatis mutandis
mutatis mutandis
August 25, 2022 1:23 pm

oh, those no goodnik, lazy workers who won’t work 80 hours a week for 20 hours of pay in shitty ass conditions. they shouldn’t expect to put a roof over their head and be able to eat on what we pay them. fucking communists they are.

those business owners who run businesses like that, they’re the salt of the earth, fine upstanding citizens! why, every last one of them needs to be saved from creative destruction and the free market. only labor should be subject to the free market.

go crapatilism!

Iggy
Iggy
  mutatis mutandis
August 25, 2022 2:02 pm

No one wants to work when 3 weeks salary goes to rent.

Anonymous
Anonymous
  Iggy
August 25, 2022 3:32 pm

The best summation I can think of.

brian
brian
  Iggy
August 25, 2022 6:05 pm

Move out of the urban areas… You’ll be happier and healthier…

you’re welcome…

Anonymous
Anonymous
  brian
August 26, 2022 10:25 am

Lower your rent, while lowering your pay an equivalent or greater amount to be in a place where jobs are less plentiful.
Brilliance!

Guest
Guest
  Iggy
August 25, 2022 8:34 pm

So what are ‘they’ doing? Where are ‘they’? How do ‘they’ live?
I am very serious.
No one has mentioned the insurance actuarial tables that say 20-40% increase in working age deaths. EVERYONE is lying of course, so who knows.

Jdog
Jdog
  Iggy
August 25, 2022 9:16 pm

Waaa. Waaa Waaa. Life is hard, it is a lot harder when you are stupid and lazy. Cry me a river

Anonymous
Anonymous
  mutatis mutandis
August 25, 2022 6:03 pm

To the downvoters: this is just the beginning. This shit is going to creep up the income ladder and bite you on the ass. It is a planned takedown of the economy, and you’re in it. You’re fearfully condemning as lazy those who are hit first because you think it will never touch you.

Talk to ya in 3 years.

Svarga Loka
Svarga Loka
  Anonymous
August 25, 2022 6:54 pm

What do you suggest people do? By your logic of a pending property moratorium, tying up as much as possible of any liquid assets in your primary residence would be a great idea then? As big a house as you can possibly find?

Thunder
Thunder
  Svarga Loka
August 26, 2022 5:49 am

Can you repair/ heat/\cool and maintain a large property when cost are rising at a feed back loop rate. NO! small, near new, insulated with solar helping and a small enough plot to maintain cheaply and with necessary base services within walking distance. No HOA fees ever because it is a cancer on savings. Health is the variable that cannot be purchased as it appear even some pharmaceuticals are unobtainable or in very limited supply.
You are going to have to cut your coat according to your cloth

Anonymous
Anonymous
  Svarga Loka
August 26, 2022 11:04 am

Nooooo. Live as small as you can.

The point of any potential property tax moratorium would be a) it would only occur if there was true hyperinflation (in which case you’re screwed in innumerable other ways at the same time), b) it would be temporary, and c) payments would resume in the new monetary system. This is how homeowner’s will be coralled into the new system.

My suggestions:
1. Downsize as much as possible. (sell at the top … right NOW… and buy a trailer on a half acre or something like that)
2. Have as many physical assets as you can.
3. Have as may of them be transportable as you can.
4. Have as many of them be barterable as you can.
5. Have as much ability to physically defend those assets as you can.
6. Pray.

OTOH, if you’re fine with the system that’s coming, live life as you normally would.

Anonymous
Anonymous
  Svarga Loka
August 26, 2022 11:22 am

Thunder’s comment pretty well beat me to it.
There is the possibility that even when the new system is fully in place (which could be 5 years or could be 50 years) some people could manage a hybrid lifestyle where the only tie to the system is the payment of property tax. It depends on how you’d transmute out-of-system wealth into inside-the-system wealth, and whether you’re comfortable having that account within the system.
Either way, though, if you’re having any trouble at all currently meeting prop taxes, mortgage payments, utilities, maintenance, etc, then you’ll be in a world of hurt when the real inflation and depression hits. Then, if you’re unwilling to walk away from your home, you will be fully subsumed in the new system … but only after having most of your other wealth vacuumed out of you.
How long will it take? How long will the transition last? Who knows. Could be longer than we’ll be alive to worry about it. However, the process has started.

bidenTouchesKids
bidenTouchesKids
August 25, 2022 1:25 pm

With less money to spend, consumer demand decreases along with inflation.

This only works when inflation is due to consumer spending, doesn’t do anything when the government spends like a drunken bridesmaid at a bachelorette party.

What the heck is going on?

Generation of “gimme dats” who celebrate mental illness, failure and quitting.

Anonymous
Anonymous
  bidenTouchesKids
August 26, 2022 10:39 am
Obbledy
Obbledy
August 25, 2022 1:44 pm

The younger generations don’t believe in anything and will reap its rewards.How come I never hear anybody talking about selling your soul just to eat.Corporations and regular businesses alike have been graced with OUR enumerated rights and then want ultimate control of YOUR every waking minute!
Then,not give you any VESTED interest and expect you to act like you do….!?!No,people don’t like to stay in abusive situations and THATS the real reason…..employment is consented abuse…..then taxed!

Vigilant
Vigilant
  Obbledy
August 25, 2022 2:13 pm

Employers– They even claim to own the rights to your piss

herc
herc
August 25, 2022 2:16 pm

I think its a situation between – work some jobs and be poor and work no jobs and be poor…the spread between poor minimum wage and poor no job has disappeared

My family has a restaurant in long island, have to pay $18 per hour for phone take out person….when its some kid its fine…but for anyone else don’t see how you can live the way costs are, after taxes that’s $2,248 a month…my inlaws rent out their studio 1 bedroom for 1,550 a month, which is average in these parts. That’s would leave that person $698 for the rest of the month to cover food/transportation/medical at what point does he say fuck it, ill just go on welfare, free healthcare ,food, medical?

I understand also the opportunity for upper mobility…I am discussing the people which historically held the low end jobs but still managed to survive or at least be better off than someone with no job..

cS
cS
August 25, 2022 2:49 pm

“Are they living that comfortably on unemployment?”

certainly more comfortably than by working.

“What the heck is going on?”

free money. it’s the lead-in to UBI (universal basic income). though of course that will be followed by mandatory government-assigned work tasking ….

Anonymous
Anonymous
  cS
August 25, 2022 6:14 pm

The unemployment excuse is horseshit by condescending, out-of-touch elitists. The “extended” unemployment that was handed out after lockdowns ended more than a year ago in most, if not all, states.
Besides which in most states you don’t get unemployment unless you work 9-12 months full time. For part time, you have to work longer. Plus, you can’t get unemployment if you quit.
If this was lazy kids working the “gig” economy, trying to alternate with unemployment:
a. they’d have to work more than a full year to be eligible;
b. they’d have to be fired and have the employer not have the ability to say you were fired for cause or misconduct; and
c. you’d have no trouble finding new “gig” economy workers.

Nope. This is wages not keeping up with inflation, pure and simple. It will get worse.

cS
cS
  Anonymous
August 25, 2022 7:18 pm

well I kinda equated “unemployment” with “welfare”. sorry.

Guest
Guest
  Anonymous
August 25, 2022 8:13 pm

Once again- better said. I think this what is going on.

Jdog
Jdog
  cS
August 25, 2022 9:23 pm

That’s the plan
The end of the self sufficient individual, and the birth of the obedient drones who eat bugs, live in corporate communes, work 20 hrs a week, and never accumulate any wealth their entire life. It is the perfection of slavery.

monger
monger
August 25, 2022 3:10 pm

Work your ass off for schemers, for a wage, fixing other peoples fuck ups , competing against illegal labor and Government hand outs to just survive and fork over Taxes to be used to blow up women and children and strip you of freedom is an appealing strategy to get people to work ? As a white man i’m not allowed to prosper by honest labor, Dennis Miller lives in a different world.

Saxons Wrath
Saxons Wrath
  monger
August 25, 2022 5:42 pm

(((Dennis Miller))) lives in this world…
Does that answer your question?

Every.
Single.
Time…..

Anonymous
Anonymous
  Saxons Wrath
August 25, 2022 6:51 pm

Is he? I’m not finding much about him.

Guest
Guest
August 25, 2022 3:25 pm

The question didn’t get answered in the article. However reading the comments my first thought is people never made enough money to live working service jobs. They aren’t worth that much. To do so would make you charge too much to the customer- you would lose business or go broke. Duh.

Well maybe part of it is the true inflation isn’t showing up quite yet. Here wages are pretty high for these types jobs and they still can’t get employees. Besides the fact that teens don’t seem to working as much and I think one of a couple decided to stay home with the kids after the lock down when they had to, plus elders not going back is

maybe the fact if businesses inflated their wages to what demand is everyone would go broke and everything fall down. Run a way inflation. It just hasn’t happened yet.
Many seem to be dead too.

We visited a young couple with 2 young kids who are working, part time I think, but both also working on developing their side businesses. We did a trade for one of their productsand may work with them in the future, in the other business, which serendipitously was the same line as us (very different profession) I think millennials are pretty smart myself and pretty conservative in an interesting new way.

Also I see people getting all worked up and mean about service. What can they not figure out when the business they’re at is begging for employees. The post office being one place. Old grouches.

Of course none of this is natural and it’s all manipulated. Know this and you may beat them and still live your life.

Iggy
Iggy
  Guest
August 25, 2022 6:07 pm

Today a lot of people don’t want their teenagers working part-time.They want them to study and get a college degree. They feel the distraction of working detracts from the studies.

Guest
Guest
  Iggy
August 25, 2022 8:40 pm

Yep. I can’t believe so many kids like school so much. I couldn’t wait to work, drive, get out of school. All are different but, in general, I think everyone should should at least work a summer of fast food or something. In the old days of 2019 that is.

Svarga Loka
Svarga Loka
August 25, 2022 6:37 pm

Yup, same here. Went for some drinks with friends last night at the local watering hole. 35 minutes wait for a table for 5 on the patio, on a Wednesday. There were roughly 25 tables total, but only 8 or 10 were being used because of lack of waitstaff. Then a whopping 1.5 hours from ordering to getting our meal.

Putin it where it counts
Putin it where it counts
August 25, 2022 6:48 pm

The working poor shouldn’t exist. Either work harder or stay poor

Jdog
Jdog
August 25, 2022 9:09 pm

The problem is that the boomers are being replaced by millineals, and millineals don’t like to work. They just want a paycheck for doing nothing as they are used to. They cannot adjust to employers actually expecting them to perform. In real life there are no participation trophies.

Jdog
Jdog
August 25, 2022 9:31 pm

Something has radically changed with younger people. Many do not even want to get a drivers license. They have little or no ambition, and no sense of wanting to be independent. I think it is something they are putting in the children’s vaccines.

Anonymous
Anonymous
August 25, 2022 9:52 pm

*Rant warning*
(As one of them): I know young people are demoralized, and every comment that says “They don’t have the will to work” is absolutely correct. The incentive ($) is both disappearing in value and being handed out for free. You cannot reward what is wrong and punish what is right, and then expect to have a decent society. In order to get people to have pride in their jobs and in their country (nationalism), you have to create a positive view as to what our country is building and what we are all working towards.
To be honest, even when seeing the times recorded before I was born, it seems that we were all working to build an empire (hamster.) And once you have that empire you then work to expand it as much as possible. But I must ask: What was the positive future that we were building with that empire? I can not think of an answer. In any case the hamster kept spinning its wheel year after year, and now our hamster is too tired to run anymore. And now the hamster’s owner (Banker syndicate) has thrown the hamster into the toilet, and is already walking out to the pet store to acquire a new one. I believe we are in the drowning phase, after the hamster’s collapse, but before the toilet is flushed, in a situation like this it is hard to have any hope.
I can only remember two times I was anywhere near proud of our government, one was when Trump decided not to escalate the conflict in Syria and thereby going against what the media wanted, and the second is Ron Desantis protecting my state from disney. So when you can say that your pride of your country’s recent history is: 1) not taking action And 2) taking potshots at the demented clown mouse; then it is a sad day indeed. It is not as though I don’t think we have inspirational leaders in our population raising their voices, I just don’t think anyone is listening to them, however. And those few patriots tend to want to be good people, and therefore not politicians.
It takes hard work to rebuild a society, a economy, a culture, a bright future, from a hard collapse that is coming. And before we can rebuild there has to be a population depletion, either via WW3 or a internal civil war. If you want to help young people, then prepare us for that war, and the tragedies that accompany it. I have always thought that our nation hiding the ugly truth of death and war from our population, is the absolute worst wound we could have inflicted on ourselves. What reality do we live in where WW3 might break out, yet all the protesters on the streets call out BLM and trans rights instead of creating anti-war movements?

Anonymous
Anonymous
  Anonymous
August 26, 2022 6:47 am

Same Anon as above; I would like to add to why young people “Don’t have the will to work”; I think this is because of the corruption and destruction of the competitive nature of life. If there is no heart felt challenge to what you do at work, either in the work itself or the quality of the results, then it is hard to be motivated on the job. I have a strong feeling that if we still had successful small town businesses, then we would be living in a different world altogether.
I remember driving between locations at work with one of my hardest working co-workers, and he was contemplating how welfare queens are rewarded for having multiple kids and then divorcing the father, all for both for the childcare from the father, and the state welfare from the government, which apparently amounted to be more money than he was making on the job, and he was one of those guys who did overtime on a regular basis.
I’m sure young people like me, do not want to work a dead end robotic job at McDonalds, we would rather work to produce something that is real, that actually helps people, and has opportunity for a competitive ladder climb. To be honest it feels as though the corporate hydra heads (sprouting off of the body of the corrupt gov) no longer need whiteys like me in the job market anymore, why not bus in a illegal immigrant from the border to do the same job for less pay? Open borders and great resets, bad results.
As for the competitive ladder of a company, it is expected that there should be a form of discrimination to rise up the ladder, those at the top should have proof of their success and actually contribute to the company. If that is so, then explain why corporate clowns have gotten into positions where they could: Woke, Crash, and Burn a company out of relevance, then pay themselves off for doing so.
I must also ask: What do we produce in America that has value to the rest of the world? We certainly have our beat stick of a military to lash onto small countries for not complying, or wanting a divorce from big daddy globalism. As for something practical and useful I’d say: cars, agriculture, and staircases for Joe to trip on (and hopefully take Kamala with him on the way down.)
If you don’t create and promote healthy competition, then you will end up the way our country and it’s young people have. Well I must welcome myself to the @mazon, where men can identify as female lesbians, gangsters shoot each other in the streets, and every demented 90 year old strives to become president. If there was ever a time to take down the king of the jungle, I must say we have gone well beyond that point.

Anonymous
Anonymous
  Anonymous
August 26, 2022 11:25 am

We don’t make cars, we “assemble” them from foreign manufactured parts.
So, just agriculture and staircases.

Been around so long I remember Billy
Been around so long I remember Billy
August 25, 2022 9:56 pm

It’s broken. It’s all broken. I’ve been through hundreds of employees in the last few years. It’s hot work, 10 hour days, but it’s not hard work. Show up, do a fair job and you are in the top 10% in pay and rewards. We train. We work with all the drama that comes from this level of manual labor. Doesn’t matter. Be strict, they quit. Be lenient, others quit. Work OT, some quit. Too hot one day, someone quits.

I’ve come to the realization that the lower rung of labor (my people) want to work about 30 hours max, flexible schedule, with no production standards. Plus they want to make enough to pay for their expenses. Doesn’t matter their productivity, their bills is what matters.

I had a woman (slow worker) tell me that she should make more than my best machine operator because she had kids, and he didn’t.

It’s all broken.

Do away with all handouts. And I mean all. Every last cent that people get from the government. And if you work for the government and get paid even .01, no voting.

After the bloodshed and deaths, we would could start to get back on track as a country.

To be King for a day.

Ghost
Ghost
  Been around so long I remember Billy
August 25, 2022 10:22 pm

Billy chewed me out for mistaking him for bb and I was afraid of him.

I miss him too.

Gerold
Gerold
August 25, 2022 10:20 pm

The company I retired from refused to hire ‘citiots.’ Instead, they hired farm and small-town kids. It cut the candidates, but it gave us attitude and aptitude.

KaD
KaD
August 26, 2022 10:25 am

Working with the public is a pain, the hours at many of these jobs are awful, and the pay is shit.