The Useless Generation

Just last week, I asked how people could afford to simply up and quit their jobs as a part of the great resignation. It seems as though the child tax credit was a big part of it, and now that credit has come to an end.

Yahoo brings to us a piece that explains how those who have quit their jobs are now complaining that the loss of the tax cut means that they have no money for bills, believing that the government should pay them to sit at home and do nothing but breed.

Roberts, who lives in Marks, Miss., left her job as an insurance agent at the beginning of the coronavirus pandemic when her employer wouldn’t let her work from home…”This tax credit is the only way we’ve kept food on the table,” said Roberts, who is raising a 5- and 7-year-old. “For a lot of the working poor, it gave us a chance to finally take a freaking breath and not stress so much about how the bills get paid every month.”

Imagine how easy it would be to pay your bills if you didn’t quit your job.

Back in Mississippi, Roberts – who took custody of her cousin’s grandchildren five years ago – says she’ll probably let her car insurance payments lapse so she can buy groceries. She has just $388 left in her bank account but feels lucky to own her house, which she says puts her in a much better position than many friends who are at risk of eviction or foreclosure.

This poor woman is stuck having to raise and provide for the grandkids of her cousin. I feel bad for her, but it isn’t the responsibility of the US taxpayer to give her money, simply because she has a sad backstory.

Who else is sad because they aren’t getting checks anymore?

In San Antonio, Nathaniel Miller and his wife used their monthly payments to buy gluten-free food, oat milk and diapers for their 1-year-old daughter, who has severe food allergies. Without it, he says his family of four will have to start using their savings to cover everyday expenses.

“We’re a one-income household, so that money has been a lifeline,” said Miller, 34, who works in communications. “Now that it’s gone, I don’t know where that extra money is going to come from. We have a little bit in savings, but savings deplete quickly. If anything else comes up, we’re kind of screwed.”

My wife and I both have jobs. Why doesn’t yours?

Caroline Nasella, a government attorney in Sacramento with 3- and 6-year-old daughters, said the extra $400 a month helped cover child-care costs and provided extra breathing room during the pandemic.

Or how about this woman:

Kelly McKernan, an artist and illustrator in Nashville, used her $250 monthly checks to cover mid-month bills and buy school clothes and winter boots for her second-grader. Her income has been cut in nearly half, to about $25,000, during the pandemic.

“Not having that money is already having a really big impact,” said McKernan, 35, who’s working on a graphic novel anthology with the rock band Evanescence and is looking for art teaching positions to make ends meet.

It’s good to know that my paycheck is cut in half by taxes so my tax money can be used by a woman to sit at home and work part time on a comic book about a rock band.

Inflation

While standing on the deck of a ship and it appears as though the level of the ocean is rising, this is an optical illusion. It is actually the ship that is sinking. Similarly, inflation isn’t an increase in prices. It’s a decrease in the value of your nation’s currency. For the US dollar, it’s value has decreased by 6.22 percent in the past 12 months.

Are you making 6 percent more than you were last year? I’m not. The problem is accelerating. In September 2021, the rate of inflation was 5.4 percent. In August, it was 5.3 percent.

If the rate of increase of inflation continues, and there is no reason to think that it won’t, November will see an inflation rate of 7.17 percent year over year. At this point, there is no sign that the rate of inflation stops in November.

The last time that the United States saw an inflation rate of more than 3.8 percent was in 1981, when the end of the Carter administration had the US suffering through 8.9 percent inflation. The year before, 1980, the rate was even higher- 12.5%. By that time, the Fed had increased the prime rate to a whopping 18%, to no avail.

At a 12.5% rate of inflation, prices double every 5 and a half years. The only thing that stopped the Carter caused inflation was a massive tax cut initiated by President Reagan. This tax cut reduced the highest marginal rate from 70 to 50 percent, then again to 28 percent. That isn’t going to happen any time soon, so…

The government will try to spin it. They will fudge the numbers by saying that increases in food and energy don’t count, as if no one is affected by paying $4.50 a gallon for gasoline. However, they won’t be able to hide the decline in purchasing power for much longer. If Biden’s the left’s stupid policies continue, the level of fuckery chicanery required for the Democrats to not get slaughtered in the midterms will be epic.

We are in for some very difficult times.

Retirees lose 1/4 buying power

For decades, the returns that one can expect from the stock and bond market have dictated how much a retired person can withdraw from their retirement savings without fear of running out later. That rule of thumb has been 4% per year. That is, a person with $400,000 in retirement savings could withdraw $16,000 per year and be comfortable knowing that their nest egg would last for the rest of your life (well, at least 30 years, which for most of us is the same thing).

Not anymore. The lower performance of the market has reduced that rule of thumb to 3.3%. This means that every retired person in the country just saw their retirement income drop by nearly 18%. That person with the $400,000 retirement fund can now only afford to withdraw $13,200.

Now couple that with inflation, officially at 6.22% for the 12 month period ending October 2021, and you see that the retired person with the $400,000 retirement savings now has seen the $16,000 they had to spend last October only able to buy $12,400 worth of stuff. That’s right, retired people have just lost a quarter of real purchasing power in just a year.

Not good news

President Biden looked at the September jobs report and called it a big success. Even though the number of jobs added in September was much lower than expected, he pointed to a decline in the unemployment rate and a boost in wages as evidence that the economic situation is improving.

He couldn’t be more wrong. The number of new jobs were low, unemployment decreased, but average wages increased. The only explanation that fits the facts is this:

Low wage jobs are disappearing. When people are out of work for six months or more, they are considered to be out of the work force. Once out of the work force, they are no longer part of the unemployment figures. Unemployment goes down.

Once the low wage earners are out of the market, the higher wage earners are the ones left. This raises the average income of the employed.

This is bad, bad news. At least I am out of the stock market.

Spending trillions costs nothing

According to this administration, spending $3.5 trillion doesn’t cost the American people a single dollar, because it is paid for.

That is pure spin. What they are really trying to say is that the money being spent won’t increase the deficit, because the cost will be offset by increased taxation. To say that increasing taxes on corporations and the wealthy means that this trillions in spending won’t cost anything is disingenuous at best. Aren’t rich Americans still Americans?

This is what governments do: They tax and spend.

Rumors

Here in the north side of Central Florida, we are experiencing shortage in frozen vegetables, along with beverages of sports drinks like Gatorade, along with canned soups being picked over. The last time I was at the store, a woman there told me that she and her husband had arrived from Pennsylvania several days before, and that area was having shortages in toilet paper and frozen vegetables. Meats were in good supply but expensive.

J KB is reporting shortages of various supplies in the Carolinas.

Things like shampoo, body wash, mouth wash, cleaning supplies, foot spray, OTC drugs, were low, especially the store brand generics.

Any other shortages in other areas of the country?

Today I went to Walmart at lunch and it took was low on a lot of non-food supplies.

Welcome to the Kubuki Theater

Every couple of years, the Democrats and the Republicans engage in this stupid play. The plot is always the same: The country has borrowed to its supposed “debt ceiling,” and the Democrats want to raise it. The Republicans “refuse” to do so unless they get some concessions. The government gets “shut down” while they argue about it, until the Democrats eventually make some sort of deal, then the Republicans declare victory, raise the debt ceiling, and everyone pats themselves on the back.

Except the debt ceiling, concessions, the shut down, refusal, all of it, is fake. None of it actually exists, nor did anything actually change. It’s all theater.