Disincentives to Work

A few weeks ago, I wrote a piece, “Fast Food Premium,” which argued that, as restaurants began offering higher wages and even signing bonuses to employees, those increased wages would get passed along to consumers, and would result in wider inflation (a big “thank you” to jonolan at Reflections from a Murky Pond for expanding upon the premise of my post with his own, excellent piece, “UBI —> UBM“).  My observations might be deemed “prophetic” if they weren’t so blindingly obvious:  higher input costs mean higher prices.  That’s basic economics.

Of course, the ongoing labor shortage is not due to a booming economy, per se, but due to excessively generous federal unemployment benefits, which have effectively increased the minimum wage for restaurant employees:  many such employees are paid more to stay at home, collecting unemployment, than they are to flip burgers, wait tables, etc.  Mogadishu Matt highlights this phenomenon in a reblog of a John Stossel piece:  the issue is not a labor shortage, but a problem of incentives.

Read More »

TBT: Cass on Our Diminished Income

The other day my students and I were talking about the Model T Ford, which in the 1920s ran around $6000 in today’s money for a new car.  It is impossible to find a brand-new vehicle of any make for $6000 today.  Granted, a Ford Focus, for example, is packed with way more technology and safety features than a Model T from 100 years ago, and that technological advancement gets factored into the price.

But consider that in the 1990s, when Kia hit the American market, they advertised a new sedan for around $6999 (in 1990s’ dollars).  What would that be twenty-five years late—maybe $9000 or $10,000?  That price point, too, is virtually impossible.

I managed to purchase my current vehicle—a 2017 Nissan Versa Note SV—for right around $9100.  It has around 45,000 miles on it when I bought it, and had been a rental vehicle before I purchased it.  I got a steal on that car—the closest comparable I’ve found since then was a list price of around $8900 (the list for my car was $8000 even).  That’s for a four-year old subcompact hatchback.

I got lucky when I found that car.  I figured it would be easy enough to find a decent car for under $10,000 when I began vehicle shopping in late 2019.  Boy, was I wrong.  Vehicles last longer than ever before, and maintain their value a very long time.  They’re also, as mentioned, packed full of technology and safety features that weren’t present even twenty years ago.  Trucks in particular hold their value extremely well; to find a truck in my price range, I’d have had to purchase a Ford F-150 from 1994 with half-a-million miles on it.

It’s great that cars last longer and are safer.  But those features—many of which drivers will never need or use—drive up the costs substantially.  Such was the point of an illuminating Twitter thread by Oren Cass, which demonstrates that, despite earning more money, Americans’ expenses for basic goods are substantially higher, requiring a whopping fifty-three weeks of pay to cover now versus a mere thirty weeks in 1985.  Naturally, given that there are only fifty-two weeks in a year, that presents a problem.

I don’t know the solution, but as I wrote a year ago, “Something’s gotta give.”

Indeed.  Here is 28 April 2020’s “Cass on Our Diminished Income“:

Read More »

Hustlin’ Towards Financial Independence

It’s another Bandcamp Friday, which means if you buy my music today, Bandcamp doesn’t take their cut; ergo, yours portly pockets a few more dimes.

Those dimes add up. Regular readers know that I’m a major advocate of sensible financial planning and reducing unnecessary spending (at one point, I would have been an “extreme budgeter,” but now some hedonic adaptation has kicked in and I’m enjoying the fruits of my labor a bit more).  I also promote hustlingworking hard and spinning different side gigs—to generate extra income.

Read More »

Overblown

I now receive ad revenue here at The Portly Politico, so if you’re using an ad blocker, please consider disabling it on this site.  Of course, you can always subscribe to my SubscribeStar Page, which is the best and easiest way to support the site and get access to exclusive weekly content.  Thanks again for your support!  —TPP

As I’ve long suspected, The Virus is not nearly as lethal as the doomsayers predicted and insisted.  It turns out that only 6% of reported COVID-related deaths were purely related to The Virus; the other 94% of victims had other underlying medical issues.

Let me be clear:  I do think The Virus is real and is potentially life-threatening, especially for the elderly and the chronically ill.  Indeed, the CDC findings indicate that is, indeed, the case.  Even when not life-threatening, it’s surely unpleasant—just like a particularly bad case of the flu is unpleasant.

But just as we’ve done in the past with bad flu seasons, we should begin returning to some degree of normality.  Indeed, Sweden’s approach to The Virus has been practical and effective:  protect the elderly and other vulnerable populations while encouraging as much normality as possible for the rest of society.  Let younger people work, play, and mingle, and develop that coveted herd immunity.

Read More »

Trump’s Pages of Accomplishments

Looking at national polls and predictions, it’s easy to get discouraged about President Trump’s reelection prospects.  Even with Joe Biden losing his mind, and the pick of a radical, authoritarian Kamala Harris as his running mate, “Sleepy Joe” is managing to stay up by hunkering down.

On our side there’s grumbling that Trump hasn’t done enough—on immigration, on law and order—and those aren’t entirely warrantless grumbles.  Republicans squandered—perhaps intentionally—an opportunity to fund the construction of the border wall while they controlled both chambers of Congress.  John McCain pompously and vindictively voted to keep the odious Affordable Care Act in place, a clear parting shot at Trump.  Trump did not seem to offer a robust response to the CHAZ/CHOP fiasco, but is now belatedly defending federal property in Portland, Oregon.

Those critiques aside, it’s worth remembering what Trump has accomplished—and he wants you to be reminded.  That’s why he gave Breitbart a six-page document of his achievements.  They are substantial—and make him one of the greatest presidents of the last fifty years.

Read More »

You Can’t Cuck the Tuck III: Liberty in The Age of The Virus

The Washington Post blares under its masthead that “Democracy Dies in Darkness.”  That alliterative tag line for The Bezos Post is intended as a not-so-subtle jab at Donald Trump, as “democracy” for The Post and the rest of the Mainstream Media means “letting overcredentialed grad students and aloof experts run everything while ignoring the proles.”  Apparently, a businessman who has slashed federal taxes and regulations and devolved power back to the States is a would-be authoritarian.

For all its dire virtue-signalling and hand-wringing, though, The Post and its ilk are wrong:  just like the unsuspecting coeds in Midsommar, liberty dies in broad daylight.

Read More »

Counting Blessings

After writing yesterday’s blog post about our diminished prosperity, I was quite upset.  I am an emotional sort, given my brooding artistic temperament, and I should know by now that complaining about money and the state of the world will only work me up—or, perhaps, down—into a blue funk (or, occasionally, a purple rage).

So today’s post is meant to be a yellow counterpoint.  It’s easy for me to fixate on negatives.  That’s pretty much the nature of blogging and commentating about politics and culture.  And while I am optimistic for the future, I am a declinist:  I can’t help but notice that much of culture is, at best, a stagnant swamp (hiding away the occasional orchid); at worst, it’s swamp draining into a desert.

But enough that.  Today’s post is about counting blessings.

Read More »

Cass on Our Diminished Income

Way back in The Before Times, in the Long, Long Ago, before The Age of The Virus, Oren Cass presented a series of sixteen tweets, asking this question:  “How is that our economic statistics suggest workers have been making slow but steady progress in recent decades, while popular perception is that their family finances are coming under increasingly untenable pressure?”

Cass also wrote about the issue in greater detail in American Affairs and in a lengthy paper for the Manhattan Institute.  That question—why does it feel like it’s harder to make ends meet now, even though inflation is low and we’re wealthier?—is one of the gnawing concerns of modern-day America.

Read More »