This Might be a Slow Recovery
Hello there again readers, and welcome back to Coffee Break Liberty, a blog where we tackle books, news, and many other things under the sun where liberty is a guiding principle. If this is your first time here we would like to extend a special warm welcome to you and hope you enjoy yourself while here.
We are all well aware of the lockdowns and layoffs right now. A couple of posts back we discussed those protesting the lockdowns and a few other things. Many of these people were outta work and looking for a way to survive. Now as the economy is opening back up we are gonna see some issues that not many people were thinking about a couple of months ago. Soon enough though these issues will rise to the top and be noticed. Two of the problems we will see are a slow return to the workforce from many low wage workers and a job sector trying to correct itself after having 13% of it just stripped away. Facing a new unemployment rate of 13% is nothing to cheer about.
First the low wage workers. Many that have been able to get their state unemployment benefits along with that of the federal increase might find that it pays better to be on the couch for some time than rather go back to work. The money that these folks are getting for many is far higher than what they get paid from their job. What would be the incentive to go back? In short, there is none until the benefits dry up. This will leave many low paid jobs unfilled and might lead to more businesses closing as they will not be able to hire people to fill the vacancies and perform the work. This isn’t correcting some long term issues, these people aren’t getting new skills but rather some extra pay for a little while and it’s enough to keep them essentially out of the workforce. A slow return to work for these workers will see those in the workforce working more hours perhaps or able to ask for more money as they might end up working the jobs of two employees rather than just one. Finally to cap this bit off, if your response to this is, “well good, they should be paid more anyways!” fine, you go start a business and hire them for the wages you think they should be earning. If you’re not in the position to make that decision for these firms then just don’t. You aren’t trusted with that call for a reason so keep the bumper sticker slogans elsewhere.
The second part of what we wanna discuss today is that the 13% unemployment rate didn’t come from the lowest performs but rather picked almost at random and whatever the government deemed essential and non-essential. In a normal environment, we would see the weakest sectors of the economy take the hit, those not performing their best would be the ones to go in a regular environment. It’s also what we would want to see ideally; the 13% lowest performers have gone to make room in the market for those with new services and products. In the case we have now though some of the best performing sectors took a hit. Many restaurants are going to have a hard time making it through this. Many businesses that were performing well will have issues surviving under these conditions for months. Random pockets in the economy are taking the hit. These will be more difficult to recover from as the room created in the economy wasn’t by the lowest performers leaving it. Rather random pockets that may not be filled for a long time have been pretty much booted from the economy at not fault of their own other than the government deeming them non-essential.
To end the post this week we would like to make clear that when the government tries to “fix” issues that it created, the lockdowns were a government creation not that of a virus, they have once again messed it up. By trying to do what they felt was right, politicians that have proven time and time again, at record pass this year it seems, have proven yet again that they are unprepared and just too ignorant to think of the other consequences of their actions. This is much like the crash of 2008 and 1929. The government reactions made the recovery take longer as they felt just throwing money at the issue would fix it. In 2008 it was money and low-interest rates (one of the main causes of the crash) and we saw an extremely slow recovery until the Fed started dumping money into the market. This cycle of insanity needs to stop. How many more times will the government try to correct issues it first created and then still find a way to make the issues worse?! If you hired a mechanic to work on your car and everything they did to it made the problem worse and cost more money you would fire em right? Not here in the United States though, we just hand our kids over to them and expect them to be “taught”. It’s time to look for a new way of doing things. Being held hostage by these norms is becoming more and more dangerous.
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Keep that coffee warm for us
LWS
