Categories
economics Economy

No Mean Tweets

People are complaining as housing costs rise. This teacher can’t afford to buy a home that she wants, but also complains that rent is too expensive, as rent costs nationwide are above $2,000 for the first time ever. But, hey, she doesn’t have to read mean Tweets, so she has that going for her.

“Rents are going up just as fast as home prices are,” says Fairweather. Yes, that is how economics works. People buy houses, then rent them out. If the cost to buy goes up, then so does rent. The same thing happens in restaurants, when the cost of food goes up, the prices at the restaurant go up. It isn’t rocket science. Take a look:

Beginning in February/March of 2021, rents began to skyrocket. Renting a home costs 15% more than it did a year ago. If only we could pinpoint an event that happened in January of 2021 that could be responsible for this rapid increase in housing costs.

Reading her Linked in page, she lists the following as her causes:

Children • Education • Human Rights • Politics • Poverty Alleviation • Social Services

Given that, I am guessing that she voted for Biden. Fuck her. She is getting EXACTLY what she voted for. Boo fucking hoo.

Categories
economics Price Controls

Smarter Than You

A Massachusetts service station owner says that oil companies are making too much profit from gasoline sales, so is now refusing to sell it any longer. He has decided that it is better for people not to be able to buy gasoline at any price, than to sell it for the market rate, because profits are evil.

This is the typical liberal mentality: “You are too stupid to make the decision as to whether or not gasoline is too expensive, so I will make that decision for you. Go buy an electric car, or something.”

Categories
Price Controls

Party of Science

This is why science can’t be trusted. Orange County, Florida’s commission hired a consulting firm to study whether or not putting rent controls in place would be productive. The consulting firm noted that rent controls wouldn’t work, mainly because the supply of rental housing is being overwhelmed by demand. They went on to say that capping rents would further reduce supply. In other words, basic economic theory.

The county government is not happy that the facts didn’t fit their version of reality and are demanding a refund.

“If (commissioners) saw that a consultant who was supposed to do fact-finding on rent stabilization was so biased as to say you’re getting outside attention, then we really should get a refund on this report,” (County Commissioner) Bonilla said. “Unfortunately, it looks like they were not ready to do the job they were hired to do, and they were too biased to provide a report that we deserved.”

Says the commissioner who is pushing for rent control

Categories
economics The Collapse

Collapsing

California average gas prices just broke $6 a gallon. The national average is currently 25% less than that at $4.59 a gallon, but many experts are calling for gas prices to reach $6 a gallon within the next 60 days. So they are calling for a 25% increase in 2 months, meaning that fuel prices are now doubling every 8 months. Since everything you buy has to be transported from one place to the other, this will continue to contribute to inflation.

In fact, gas stations in Washington state are already preparing for $10 a gallon gasoline prices. We are on the cusp of seeing hyperinflation and a collapse of the US economy.

Categories
economics Price Controls

Venezuela as a Map

The Fed is asking businesses to enact a hiring freeze to help fight inflation. The thought here is to cut off the demand for labor, which will prevent wages from increasing. This will in turn lower the amount of money available to chase goods, which will reduce demand and thereby control inflation. In other words, they want to make everyone poorer by keeping you from being able to get a job or run your business.

This is a common scenario for socialism/communism:

  • They enact policies of free stuff, which causes runaway inflation.
  • To combat that inflation, they begin wage and price controls.
  • This causes shortages of goods and labor.

How long will it be before we are eating our pets?

Inflation won’t be controlled by keeping people poor on purpose. It will be controlled by stopping leftist idiots in the government from doing things like mailing out checks so people can have free Internet.

Categories
economics

Inflation

Citrus County, Florida median home price was $195k in February of 2021. In March of 2022, that had risen to $280k. A 44 percent increase in 13 months. That makes the 30% increase in rent prices seem tame.

Thanks, Brandon.

Categories
economics

Pass The Gasoline

Amidst the highest level of inflation since Jimmy Carter, the current resident of the White House is considering throwing gasoline on the fire by waving his executive pencil and forgiving $10,000 in student loan debt per borrower.

The administration claims that this will forgive $321 billion in loans, but my back of the napkin figures place that at closer to $400 billion. In any case, that means that another $350 billion or so dollars will suddenly be added to the dollars circulating through this inflationary economy in a time when we should be tightening economic purse strings, not spending like there is no tomorrow.

Inflation will continue to get worse. It’s like a couple of 14 year old kids are playing with a can of gasoline and some matches. In the house.

Categories
economics

More Inflation

Publix supermarket has had a free prescription program since 2007. A list of medications including blood pressure, diabetes, and antibiotic medications were free at Publix for the past 15 years. The supermarket chain claims to have filled over 100 million free prescriptions during that time.

That comes to an end on June 1. Instead, many of those medications will be available for $7.50 for a 90 day supply WITH INSURANCE. So those who have relied on Publix to fill prescriptions will now have to scramble to find insurance.

Inflation in the Biden economy continues.

Categories
economics

Reedy Creek

The left has suddenly abandoned its hatred of big business and defense of the little guy. Now they support big pharma, they support Disney, and they want companies running the show. I never thought that I would see the day. So Florida just voted to eliminate Disney’s government.

Now that Florida is removing Disney’s right to be its own government, what does that mean? Let’s start by explaining what the Reedy Creek Improvement District is, and what it does.

History

On May 12, 1967 then Governor of Florida Claude Kirk signed a bill into law establishing the Reedy Creek Improvement District (RCID). On the same date, he signed the incorporation acts for two incorporated cities within the district: Bay Lake and Reedy Creek. (The City of Reedy Creek was renamed to the City of Lake Buena Vista around 1970.) Before that time, nearly all of the area was undeveloped swamp land. Of the 25,000 acres of land within the RCID, Disney owns more 68% of it, RCID owns 29% of it, the State of Florida owns 2% of it, and a small plot of 110 acres belongs to “others.” Reading below, you will see that much of this 110 acres belongs to the board of directors, so they can legally serve on the board.

RCID provides to the area what local governments normally provide: fire protection, street lighting, garbage collection, water and sewer services, permitting, tax collection, and more. The District can issue bonds, and more importantly for Disney, controls all building codes and rules. Since RCID is located in two counties (Orange and Osceola), the ability to make its own rules concerning flood control, building permits, and environmental impact has meant that Disney has been out of reach of any local government regulation for over 50 years.

With more than 500 current employees who handle things like a laboratory for testing water and environmental concerns, an electric power-generating facility, a water treatment facility, recycling center, and a fire department, RCID provides all of the services that a small city does.

Governing Board and Voting

RCID receives all its income from taxes and fees imposed within its boundaries. This is a huge boon for Disney, because they are essentially paying taxes to themselves. RCID has an annual budget of $119 million, with more than $90 million of that being paid by Disney. Considering the value of all of those resorts and theme parks, $96 million in taxes and fees is a bargain.

A board of five supervisors elected by the landowners conducts the business of the district at monthly board meetings. The supervisors must also be landowners. Since Disney owns the land in the district, Disney sells five-acre blocks of undeveloped land to the supervisors. Since, you guessed it, Disney owns virtually all of the land within RCID, Disney decides who is on the board. On completion of their terms, these individuals (who are also employees of Disney) sell their land back to the company. Votes are strictly proportional to the acreage owned, so the company basically governs its own property. The law permits supervisors to vote on contracts between the district and their own companies. The board doesn’t change hands very often. For example, the President of the Board of Directors has only been held by five men since its inception in 1967: Larry Hames (the current President), Donald Greer (who is still on the board), Tom Moses, Tom DeWolf, and Joe Potter.

Losing the RCID

The impact of losing the RCID on Disney will be large. The company will have to pay taxes, water and sewage fees, and more importantly will lose the ability to set its own building codes and regulations. There are those who claim that Disney might simply leave the state. That would be ridiculous. The cost for Disney to replace just the road network that it has built around the parks is over $200 million. There is land development, flood control, infrastructure, as well as the cost of replacing four major theme parks, another six minor theme parks, a hospital, power plant, water and sewage plant, and all 31 Disney owned resort hotels. This would also require the moving of the animals located within the zoo at Animal Kingdom, meaning that wherever the company went would have to have similar climate. It would all need to be near a major airport, and a large source of employees. Even if all of that were possible, Disney would then have to fund and construct the project, which would take a decade and cost billions of dollars. The total assessed value of the property within RCID is $13.7 billion. Moving that just isn’t happening.

So how will this affect Disney and the surrounding area then? Let me start by explaining something I know a lot about: the fire department.

Reedy Creek Fire Department has 138 people staffing four fire stations. (Another 86 personnel provide admin and first aid within the parks, but that service would likely remain a Disney provided resource as it does in other area parks like Universal Studios and Sea World.) They are all union employees who are very well paid. People will leave years long careers at other departments to work for Reedy Creek, mostly due to light call loads and high pay. The RCFD pensions are paid for by the Florida taxpayer, and since pay is so high at RCFD, the pensions are high as well.

Thanks to the good condition of the buildings, Reedy Creek doesn’t run many fires, and the ones they do get are generally wildland fires. More than 97% of the calls that they get are EMS calls. The operating budget for this department is over $32 million a year. In contrast, the Kissimmee Fire Department (located a few miles away) is of similar size and call load, has a budget of $17.1 million a year.

Starting pay for a firefighter paramedic at Reedy Creek is nearly $60,000 a year. If the RCID is disbanded, firefighters may get picked up by Orange County Fire Rescue, where their starting pay is considerably less at $52,700.

They are screaming that the fire department will be eliminated. Scare people into thinking that they will be unsafe. If the firefighters want to continue working there, they are going to have to take a large pay cut. Firefighters with Reedy Creek claim that they aren’t Disney employees, but that is smoke and mirrors. As you have seen on this page, this is a distinction that exists only on paper.

The democrats are pulling out all of the stops. The local news is filled with stories of tax increases, lost jobs, and other disasters. They are really trying to whip up the local public into thinking the sky is falling. None of that will happen. It’s all election year scare politics.

Sources

Reedy Creek Facts from the Office of Program Policy Analysis, 2004

Reedy Creek Budget

Categories
Tipping

Why Tipping Sucks

I first referenced this video in 2015. Since I don’t have a post ready this morning, I will just rerun it.