Tag: Reflections from a Murky Pond

TBT: Disincentives to Work

The Portly Politico6 Comments

I don’t mean to be all doom and gloom this week, but it sure feels like things are falling apart all around us:  food shortages, rising unemployment, riots.  I think we’re in for a really nasty summer, but I hope I’m wrong.

We’ve been muddling through longer than we realize.  While gas prices have only shot up in the past five months, people have been dropping out of the workforce for a good while now.  Back in the Obama years, conservatives used to mock (rightly) the government’s unemployment figures for leaving out the labor force participation rate, which was pretty paltry back then (something like only 60-70% of working aged people were actually actively looking for work; the unemployment rate was based off that portion, rather than all working aged adults).

Now we’re in the midst of what the mainstream media is calling “The Great Resignation,” with millions of Americans quitting their jobs.  That’s due in part, I believe, to the generous government largesse during The Age of The Virus.  We’ve all gotten a taste of easy money—inflation be damned!—and now we want the gravy train to keep on rollin’.

But I think it goes deeper than that.  My generation in particular—prone to wokery, alas—legitimately has gotten the short end of the economic stick, entering the workforce during a recession, saddled with billions in student loans and overcredentialed.  Granted, some of those problems were our fault—we fell for the siren song of expensive degrees—but we were largely following the advice that had worked for our parents’ generation.

Understandably, many of my peers did not want to go back to waiting tables and pouring coffee for strangers—or going back to other thankless jobs.  Not all of those folks are deadbeats or mooches—some of them are just worn out.

Regardless, the government’s sticky hands are in all of this mess (for example, college tuition is so astronomically high because the government will keep extending loans to anybody to get them to go to college, even if that person isn’t going to earn much with his degree).  Work is annoying, stressful, and demanding—but doing it makes us better people.

With that, here is 26 May 2021’s “Disincentives to Work“:

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Disincentives to Work

The Portly PoliticoLeave a comment

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.

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Phone it in Friday XV: Blogger Buddies

The Portly Politico6 Comments

It’s been another crazy week, but the rhythms of the school year are beginning to fall into their familiar patterns.  That said, I’ve put in more hours working this week than any in a long time.

Regular readers know what that means:  another edition of Phone it in Friday, now reaching its fifteenth installment.

It’s been a week for shout-outs to other commentators and platforms, so I figured I’d continue with that theme and recommend some of my blogger buddies to you.  I have to give a big hat tip for this idea to one of my best blogger buddies, photog, over at Orion’s Cold Fire.  He wrote a post—“A Word of Thanks to Our Boosters“—highlighting some of those blogs that routinely link to his page or reference his writing, and yours portly made the list.  Thanks, photog!

So on this rainy, overcast Friday, here are some excellent blogs for your consideration:

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