While reading Charles Hugh Smith's excellent blog Of Two Minds today, a phrase jumped out at me. A simple phrase- "make ends meet". The guest poster was lamenting the differences between now and then. Then being the age of the single income household. I grew up in those days. The stay at home Mom days. Believe me, I have thought about this issue a great many times over the years, and I don't mean just recently but for most of my working (when I did) life.
My Dad worked and my Mom stayed home with the kids, not unlike millions of other families in the 50s, 60s and into the 70s. Before you say it, yes I am well aware that she worked very hard too, likely harder. I am currently home with two grandchildren and know how tough it is to raise kids and keep a house clean. Believe me! That's not my point.
My point is how did my parents do it? I have read much about this over the years. I've seen tons of charts and graphs and wonky economic explanations. Very informative but missing what I believe is the basic issue- consumption. I know wages have been stagnant for a long time and purchasing power has diminished but there is, a least in my mind, a more obvious explanation.
My Dad had a good job. Not great but good. Solidly middle white collar. We always had two cars, television, an occasional meal out, and a vacation each summer. My Mom generally got a "new" two year old car about every five years or so and my Dad drove a clunker that required frequent repair or replacement. We had a "big" RCA color TV (content via antenna) in the living room, ate out maybe once a month, and during the summer we would take a car trip. Life was pretty OK.
During what were in retrospect my AND my wife's prime wage earning years, there was and still is a TV in every room receiving hundreds of cable channels, several computers with the requisite high speed connection, cell phones for one and all, at least two new or almost new cars, frequent meals out due to lack of time and/or energy, activities outside the home for us and the kids, and all kinds of crap purchased to entertain the kids when they weren't playing baseball or whatever. We weren't a big vacation taking family because we really couldn't afford it. Some of my friends take ski trips and annual vacations in Europe or Mexico. Good for them! The thing is we are all two income families. No way could we have all this junk and go all these places on just one income- unless our names are Steve or Bill or Warren.
We all wanted to give our kids a "better" life. Give them "more" than we had. Looking back, there wasn't a damn thing lacking in my childhood. All we have managed to do in many cases is create unreal expectations for our kids, especially given our current, ongoing economic woes. Was it worth it? Hell no!
Wednesday, December 8, 2010
Sunday, December 5, 2010
Saturday, December 4, 2010
....or not!
Just when the network cheerleaders began to nearly universally celebrate the strengthening of the "recovery", fresh employment numbers snap them back to reality. Smiles turned upside down. I guess these fools really thought that all of the temporary seasonal hiring represented a trend of some sort. You know 150,000 this month, 170,000 next month and before you know it about 3,000,000 a month (give or take)...
Last night as I was listening to the Jim Bohannon Show ( love late night am radio) I heard a guest named Dante Chinni who is the director of the Patchwork Nation project. Though not nearly as apocalyptic as I, he nevertheless put forth the opinion that we are in fact in rather deep shit- at least from the standpoint of employment. Well worth a listen. In any event he was one of the few guests I have heard on any of these shows who not only was concerned about the overall unemployment numbers, but also the fact that the "created" jobs may not be sustainable or in fact may not pay enough to support the sort of life many had. I'm sure you may be thinking that these folks will just have to "get used to it"or "make some changes". That's obvious. What might not be as obvious is that many of these people, including yours truly, have built a life on the income that they had- and thought they would always have. They thought that if they lost a job another could be found to more or less replace what they had...with perhaps minor alterations. In many cases this was a very naive and unrealistic expectation. Believe me, I know.
True, not everyone is in denial, but it does in fact evoke odd emotions when you are constantly bombarded with "good news" when all around you seems to be just more of the same. Of course, none of the cheerleaders realize that life on 50k a year is even possible let alone what it would be like to suddenly have to manage on $9-$10 AN HOUR. My God, this is America! Just go out and be an entrepenuer and get rich. Everyone can do that. This is America. Right. Go to hell!
Last night as I was listening to the Jim Bohannon Show ( love late night am radio) I heard a guest named Dante Chinni who is the director of the Patchwork Nation project. Though not nearly as apocalyptic as I, he nevertheless put forth the opinion that we are in fact in rather deep shit- at least from the standpoint of employment. Well worth a listen. In any event he was one of the few guests I have heard on any of these shows who not only was concerned about the overall unemployment numbers, but also the fact that the "created" jobs may not be sustainable or in fact may not pay enough to support the sort of life many had. I'm sure you may be thinking that these folks will just have to "get used to it"or "make some changes". That's obvious. What might not be as obvious is that many of these people, including yours truly, have built a life on the income that they had- and thought they would always have. They thought that if they lost a job another could be found to more or less replace what they had...with perhaps minor alterations. In many cases this was a very naive and unrealistic expectation. Believe me, I know.
True, not everyone is in denial, but it does in fact evoke odd emotions when you are constantly bombarded with "good news" when all around you seems to be just more of the same. Of course, none of the cheerleaders realize that life on 50k a year is even possible let alone what it would be like to suddenly have to manage on $9-$10 AN HOUR. My God, this is America! Just go out and be an entrepenuer and get rich. Everyone can do that. This is America. Right. Go to hell!
Wednesday, December 1, 2010
Things are getting better...again.
Things are improving so fast I just can't stand it. The BLS keeps trotting out these amazing job gains and the Street reacts with big gains that will probably be lost (or maybe not) down the road. Not that gains in the DOW piss me off- I still have money there. The thing about the jobs report, at least as I see it, is that for I don't know how long we were told that we needed +250,000 per month to stabilize the unemployment rate. Now we hear it's 200,000. Next we will be told that as long as we get 100,000 new jobs a month it will signal good times. Well as I said before I'm betting that a whole lot of those jobs are temp jobs for the holidays. Better than not having a job? Of course it is. The thing is, many if not most of those seasonal jobs will go away after Christmas. What will be left? Lots of retail jobs. The jobs report indicates that a large number of retail jobs were created. Good news to be sure except that many of those jobs holders will still require assistance to make ends meet. Probably a lot of jobs will be created in our ponzi financial sector for those that are qualified. Well, that takes care of upper and lower income jobs I guess. Now what about the rest of us?
As I have said before and am sure it is apparent to anyone reading this, I am a doomer. Here's the thing. I am a skilled labor, decent income earning type of guy. At least I was until the end of last September. I've been unemployed for 2 months without really even a sniff at a job. Am I just lazy? Not hardly. Am I any good at what I do? Damn right I am. I am excellent at what I do. Any jobs available for me? Very few that don't include leaving my family behind and working in BFE. That comes next. You might think that having specialized skills would necessarily improve your employment outlook. Maybe if you're young. What about folks like me that are north of 50 and should supervising the kind of work they have mastered rather than hoping to find an entry level job in the field they have worked in all their adult lives? For people like us, the future doesn't look quite so rosy. In fact, my future pretty much sucks.
I will be interviewing soon for a job that is some 300 miles from home. I have a good chance of being hired. What will that mean for me and my family. Well for starters, I will once again have health insurance. That is a BIG deal, especially when you are older. The pay? Similar to what I earned at my last gig. A 600 mile daily commute? Nope. Ain't gonna happen. So now, to earn a living and have health insurance, I have to earn enough to live elsewhere, while sending my family enough money to make this move make sense. Why not move? The other half of the financial equation (my wife) has a job here which can't be easily replaced there. We have a house that fits our needs, great neighbors, and a great community. Maybe I can find some other kind of job so that I can stay here? Been trying that for 2 fricken months with no success. Either over qualified or not qualified enough for a different kind of work.
So, when I hear about the drastic improvements in the labor market, I have to wonder how many people are in same leaky boat I am. Maybe millions. That's why I view these job numbers as a feel good stat intended to drive the Market up despite seeming indicators (at least to me) to the contrary. The much talked about destruction of the middle class. Coming soon to someone you know.
As I have said before and am sure it is apparent to anyone reading this, I am a doomer. Here's the thing. I am a skilled labor, decent income earning type of guy. At least I was until the end of last September. I've been unemployed for 2 months without really even a sniff at a job. Am I just lazy? Not hardly. Am I any good at what I do? Damn right I am. I am excellent at what I do. Any jobs available for me? Very few that don't include leaving my family behind and working in BFE. That comes next. You might think that having specialized skills would necessarily improve your employment outlook. Maybe if you're young. What about folks like me that are north of 50 and should supervising the kind of work they have mastered rather than hoping to find an entry level job in the field they have worked in all their adult lives? For people like us, the future doesn't look quite so rosy. In fact, my future pretty much sucks.
I will be interviewing soon for a job that is some 300 miles from home. I have a good chance of being hired. What will that mean for me and my family. Well for starters, I will once again have health insurance. That is a BIG deal, especially when you are older. The pay? Similar to what I earned at my last gig. A 600 mile daily commute? Nope. Ain't gonna happen. So now, to earn a living and have health insurance, I have to earn enough to live elsewhere, while sending my family enough money to make this move make sense. Why not move? The other half of the financial equation (my wife) has a job here which can't be easily replaced there. We have a house that fits our needs, great neighbors, and a great community. Maybe I can find some other kind of job so that I can stay here? Been trying that for 2 fricken months with no success. Either over qualified or not qualified enough for a different kind of work.
So, when I hear about the drastic improvements in the labor market, I have to wonder how many people are in same leaky boat I am. Maybe millions. That's why I view these job numbers as a feel good stat intended to drive the Market up despite seeming indicators (at least to me) to the contrary. The much talked about destruction of the middle class. Coming soon to someone you know.
Friday, November 26, 2010
Black Friday...good grief!
To those of you who decide to stay home with your families on Black Friday-congratulations for making the right choice. To the rest (the participants), what in the hell are you thinking?
Whether or not you believe as I do that we should be saving and paying down our debt, words can't describe my perception of the idiocy of this tradition. Hopefully you have the opportunity to see yourselves in one of the many videos currently viewable online or on TV. Bunch of buffoons.
Is this a sign of an improving economy? Seems doubtful to me and here's why. As has been noted on various other blogs (good blogs... not like this one), many who are effectively squatting in homes that they aren't bothering to pay for are using what money they do have to buy cheap Chinese crap instead of paying their mortgage payment and at least attempting to provide for their own and their family's future. It is horribly sad when someone prizes to such an extent a 40" flat screen TV that will either be shortly outdated or a nonworking piece of shit. Talk about screwed up priorities. Second, much of the amazing recent employment gains are very likely temporary seasonal workers who will once again be unemployed in January.
We as a society do seem to place undo emphasis on possessions. I think most would agree with that statement. If not- fine. If your idea of America is working 40 hrs. a week (if you're lucky) to own a bunch of stuff that will lose it's ability to make you feel good about yourself in short order, then more power to you. I certainly don't eschew possessions, I have lots of useful, durable stuff. Good quality stuff that was built to last. Not cheap Chinese crap made by poor people who are paid third world wages for the privilege of enriching Walmart and Target.
What happens when the holiday season is over is any body's guess. Probably temp workers will be let go, sales will return to their normal level (which wasn't good), truck freight will decline as well, and all the while the pundits will declare the economy healed. As I posted previously, excellent quality blogs such as Charles Smith's Of Two Minds, Mish, and Zerohedge paint a far different picture, at least for me.
I sincerely hope all will be well, but I very much doubt it.
Whether or not you believe as I do that we should be saving and paying down our debt, words can't describe my perception of the idiocy of this tradition. Hopefully you have the opportunity to see yourselves in one of the many videos currently viewable online or on TV. Bunch of buffoons.
Is this a sign of an improving economy? Seems doubtful to me and here's why. As has been noted on various other blogs (good blogs... not like this one), many who are effectively squatting in homes that they aren't bothering to pay for are using what money they do have to buy cheap Chinese crap instead of paying their mortgage payment and at least attempting to provide for their own and their family's future. It is horribly sad when someone prizes to such an extent a 40" flat screen TV that will either be shortly outdated or a nonworking piece of shit. Talk about screwed up priorities. Second, much of the amazing recent employment gains are very likely temporary seasonal workers who will once again be unemployed in January.
We as a society do seem to place undo emphasis on possessions. I think most would agree with that statement. If not- fine. If your idea of America is working 40 hrs. a week (if you're lucky) to own a bunch of stuff that will lose it's ability to make you feel good about yourself in short order, then more power to you. I certainly don't eschew possessions, I have lots of useful, durable stuff. Good quality stuff that was built to last. Not cheap Chinese crap made by poor people who are paid third world wages for the privilege of enriching Walmart and Target.
What happens when the holiday season is over is any body's guess. Probably temp workers will be let go, sales will return to their normal level (which wasn't good), truck freight will decline as well, and all the while the pundits will declare the economy healed. As I posted previously, excellent quality blogs such as Charles Smith's Of Two Minds, Mish, and Zerohedge paint a far different picture, at least for me.
I sincerely hope all will be well, but I very much doubt it.
Wednesday, November 24, 2010
Improving?
Is the economy improving? I certainly hope so but- a look at the various charts and graphs supplied today by Zerohedge says otherwise. You can almost bet that first time claims will be revised higher next week. Adding that to the aforementioned charts will likely give you a different and more realistic perspective. Sorry to be negative folks.
On a cheerier note- HAPPY THANKSGIVING EVERYONE!
On a cheerier note- HAPPY THANKSGIVING EVERYONE!
Saturday, November 20, 2010
Do something-even if it's wrong!
Guess that must be our new mantra. Maybe it always was. The Fed messing about in the economy. The TSA messing about in our pants. We expect results in a hurry and if what we just tried didn't work, let's wait a day or two and try something else. We demand instant gratification.
Problem is, we don't really know what we want except in a vague, general sort of way. We want a strong economy and security. Just make it so! Ain't gonna happen-at least not tomorrow or the next day. Solutions? I sure don't have any. Maybe all we can do is raise our voices to the people who can do something. Ourselves.
Will a majority Republican house make a difference. I hope so but deep down I doubt it. I don't believe a solution to our problems will ever come from a politician. The world really is different now and we have only ourselves to rely on. Better get busy.
Problem is, we don't really know what we want except in a vague, general sort of way. We want a strong economy and security. Just make it so! Ain't gonna happen-at least not tomorrow or the next day. Solutions? I sure don't have any. Maybe all we can do is raise our voices to the people who can do something. Ourselves.
Will a majority Republican house make a difference. I hope so but deep down I doubt it. I don't believe a solution to our problems will ever come from a politician. The world really is different now and we have only ourselves to rely on. Better get busy.
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