It feels like America is running out of everything
theatlantic.com
theatlantic.com
What has changed is the queues and the pricing. The shortages we are feeling are the gaps that have surfaced between when retailers trigger reorders and when they are replenished. They grew accustomed to being able to do that just-in-time as forecasted inventory went to 0, but the added delays have made this much harder.
Additionally, the shipping prices have made many things simply uneconomic to ship. I saw an analysis on the difference in cost recently for a grill: prior to the pandemic, shipping from China to LA contributed $5 to its price, with shipping costs up 8x, that's now $40. Rather than fulfill orders at negative margins, many people are simply waiting for lower prices after the holidays. It's not that they're being held up in transit, these things aren't being shipped to begin with.
In some cases, an incredibly aggressive supply chain and payment schedule can actually create financing for a company. Aswath Damodaran's corporate finance class mentions one of the major alkaline battery producers as an example. At any point, they only have 2 days worth of production in inventory, and they require payment within ~7 days from clients, while their own suppliers are paid after 30 days. That means at any point, they are holding about 20 days of revenue worth of cash without paying any interest.
Its not purely cashIn-cashOut, there is a time property as well, and various forms of investment can make cash_t1>cash_t0
I have read that something like 5% of Starbucks' accounting liabilities are gift cards that have not yet been redeemed. So again in a simplified financial view, that is a loan at 0% interest, and some percentage of that "loan" will never get called in.
I guarantee you they have models about what percent and at what rate over time that "loan" actually gets "called in" (redeemed for coffee and store employees' time).
I have a few supermarket chains within reasonable shopping distance. The higher end one seems to be low in stock of a few staple items.
The more mid-tier grocer has no shortages that I saw.
My guess is they warehouse things differently.
Perhaps it’s time for the US to finally stop doing that.
news report of 10 days for tankers to unload cargo in california too
I still disagree with that theory, clearly giving everyone more money is going to raise prices, but it's not quite as ridiculous as you make it sound.
Lots of people have been talking about how modern monetary theory (MMT) means that the USA can 'print money' (increase the money supply) without fear of inflation.
That can't possible be it. There must be some consequence to increasing the supply of money. I don't admit to knowing what that consequence is but there is no way the story is, "we make more money. the end"
I think the caveat is that politicians can supply money into the economy (increase their chances of re-election), but will be reluctant to raise taxes in an effective way (to not decrease their chances of reelection).
It does say that the government that controls the currency (monetary sovereignty) never has to default.
I think people may be mixing up the increasing popularity of MMT with the idea that we have been "pumping money into the economy" for years without the official measures of inflation ticking up much, at least until very recently.
I don't think the average person buying cars, trying to rent/buy housing, or send their kids to college would agree with the official narrative of low inflation however.
MMT holds to the orthodox monetary view that inflation/deflation result from expansion/contraction of money supply relative to output. MMT, despite its name, is quite orthodox in monetary theory.
Where it is (somewhat, though most orthodox voices I think would concede this point if cornered and unable to talk around the question) unorthodox in description is in theory of government finance, as it holds that fiscal constraints are a fiction (for a government operating in its own fiat), and that the only real constraints on government spending and its relation to taxes are not fiscal limitations of a finite purse but the monetary effects of money creation by spending and money destruction by extraction via taxes, etc.
But the real conflict between MMT practitioners and orthodox economics doesn't even seem to be on the empirical, descriptive elements of economic theory, but prescriptive/normative elements of policy recommendations made by adherents to the theory.
In any non-American 'monetary sovereign' country, printing too much money will crash the exchange rates (this is not merely a consequence of inflation - some of the processes involved are independent). It's a slightly different casual mechanism than the neoclassical one, but still the result is a de facto government default.
The USA however holds the world's reserve currency, and the normal restraints indeed don't apply anywhere as much. This however does not mean there are no restraints. Fortunately the country has never gone full MMT, so we'll never find out empirically.
It just had a lucky run with discovering hundreds of millions of years of stored fossil fuels to propel its development.
And WTF is this "new economics" bit? I never heard anything about that, either from government or non-fringe media sources. Links, please.
Most of the supply chain experts are predicting that it will be years before this is unwound. Years.
It's talked about quite often and it's most significantly the idea that government doesn't have to worry about spending money it doesn't have. The formal form is usually called Modern Monetary Theory.
Because announcing there will be shortages is guaranteed to produce shortages.
I used to buy a sum total of six rolls of TP in 2019 (I use a bidet, so this is mainly for guests).
Right now I have a box of 24 in the house with two used all through 2020 + 2021 (no guests, that's why).
So that's 22+ rolls which I have taken off the market without utility, which is because the week I went looking for TP it wasn't there and you could order in bulk instead.
They pulled the lever on the trolley problem, therefore it is their fault, but not pulling is also a choice with damage.
My partner uses the air-dryer that is in the bidet (~2018 Brondell Swash), but there's a bit of that feels very unhygienic to me & I'd rather just soap up right after.
https://taxfoundation.org/state-business-inventory-tax-2021/
This seems like something that would have been obvious to outlaw when drafting the legislation for the tax.
Ruining institutional trust by patronizing and lying seems like much worse long-term damage than toughing out a TP shortage.
The people who own these news networks are literally the people that populists position themselves against.
The campaigns against populists (Ron Paul, Bernie Sanders) are usually successful. In the case of Trump, they weren’t. I think what we are seeing now, where the news has basically just given up and semblance of even trying to be an indicator of true things which are happening in the world, is that elites are trying to course correct.
Like it or not 2019 was the best year that the working class and low income have had in the US for a very long time. Real wage growth was record high, unemployment was record low. It was an incredible time (if you don’t see this: please try to diversify your fried groups. The people in the country who usually get forgotten about we’re happy and hopeful in a way they haven’t been in a long time).
So why are the news people lying? Because they want people to forget that, and they really need to be right about their idea that electing an elderly, senile, corrupt, career politician is the solution. So they just lie about it.
Edit: when you guys downvote this can you please just give at least some kind of explanation? I really wish some of you could have seen the level of hope that the poor and working class had for the first time in a LONG time, and what this lying and gaslighting has done to them. It’s horrible.
Operating at a loss is the same thing as being funded by someone else.
Hence AT&T owning CNN & then coming up with the idea for a network like OAN to cater to a different demographic.
No it's not. It's a system whereby the powerful tell working class and low income common folk to be angry at things like immigrants, minorities, other countries, etc. so their anger goes elsewhere. A more modern alternate form involves convincing people to be angry at things that don't exist, like Satanic pedophiles harvesting adrenochrome or 5G chips in vaccines, so people expend their limited energy fighting windmills and diving down rabbit holes that lead nowhere.
Here's a good rule of thumb: if you are angry at someone about a condition such as high costs or unemployment, ask yourself if the people you are angry at have the power to act as decision makers in control of any of the decisions that led to that condition. If the answer is "no" you are angry at the wrong people.
That's not populism because it involves thinking, and populism is mindless.
You responded to me, but I 100% agree with you!
I remember in Marin county, my gym had hired a guy with down syndrome because they didn't have enough employees -- unemployment was so low. My local safeway had resorted to hiring extremely disabled people to help with checkout. There was at least one paralyzed lady doing checkout and a guy without hands as well. For those individuals, such an opportunity would be very difficult to come by (I know ADA exists.. but let's be honest).
> So why are the news people lying? Because they want people to forget that, and they really need to be right about their idea that electing an elderly, senile, corrupt, career politician is the solution. So they just lie about it.
Absolutely. If we saw sustained real wage growth the way we were beginning to see with Trump, people wouldn't have to rely on debt to finance their lives, which would mean a reduction of asset opportunities for the upper class. They couldn't stand that.
You almost answer your own question, but mistake cause & effect.
They weren't reporting critically, it just happened that their preferred (leftwing) political option was out of power. They were lying against Trump / for Democrats, just like they're now lying for Biden. The only difference is, who's in power.
Because that's what they do. They define reality.
When it comes time to convince people that the shortages and inflation are normal and will always be there (and were always there in a "we've always been at war with Eurasia") way, they'll do just that.
>This is a far cry from the critical reporting of the 2016-2020 years.
2016-2020 didn't have critical reporting either. It had hysterical partisan crap, with a big bias against Trump with ridiculous stories proped up to inifinity because it made good bucks (and because Trump was championed by middle/working class/flyover state people - basically everything esteemed and hip journalists, academics, and pundits on the upper middle class - or aspiring to be there - despise).
The same partisan bias proped up Biden (a long-time lame "professional politician", forever an insignificant mediocrity, and now barely functional due to age, that was touted as some kind of political messiah by the media).
Are you claiming these shortages are permanent? I see no evidence of that, since already things which were scarce or costly have returned (wood, toilet paper, etc.).
It's still more likely these shortages will subside as workers return (a decent amount of the shortages are Delta shutting down production lines).
PPE, toilet paper, hand sanitizer, lumber, cleaning supplies, canned goods, $100 bills, jigsaw puzzles, baking yeast, Nintendo Switch, pool chlorine, condoms.....
And a lot of these things were never actually short - just that panicking people hoarded them.
Another set were caused by lower COVID demand meant manufacturers didn't place traditional orders, and now that demand is back, they're sitting in lines getting orders filled.
All of these things and more faced shortages, yet bounced back.
1. Computer chips, and things that depend on them like cars 2. Labor 3. Groceries (have you seen the stores?)
You are talking about trivial items, like baking yeast and jigsaw puzzles, and I'm talking about far-reaching systemic issues, like labor and food.
If you're claiming food shortages are systemic, then you're using the word wrong. There is no fundamental breakdown in food that will last forever. Delta is shutting down some factories and lines. And there is not a food shortage - there are temporary shortages on some items, and those items rotate in and out. I don't think I've seen a good there yet that is simply gone for months and months.
Yes, I have been to the grocery store. The vast majority of food items are still there. When something I want is not on a shelf, I ask, and they say it comes in a few days, so I go back and get it.
Ripples on rotating products, when the vast majority are still available, is not what I'd call a "food shortage," unless I simply wanted to be hyperbolic.
From how many angles do you want to check your claim?
More evidence? If there were large scale shortages, companies selling food should lose noticeable revenue, and you can check their stock prices and revenue statements, and you'll find they are increasing, not decreasing.
Chips also are only short for very few categories - I order stuff from Digikey and Mouse nearly every week, and have only hit one chip that not in stock, but it's also a new chip (ESP32-S3). And today, lo and behold, I got some from Digikey. It's the first time I have seen them for sale anywhere.
So there's evidence for you that even new chips are popping up.
Consumer electronics use about half the world chip supply. Go to a Best Buy and see how many consumer electronic products are still there, and how many are not. Very, very few items are missing. Things that are out are things that were new as COVID hit - new Xbox, PS5, some GPUs (although I have bought 3 3090s during the "chip shortage"), Switches were short (bought 2 - the handheld and TV versions). But not much else I have looked for requiring chips have been short.
Cars use about 3000-4000 chips, and any one missing stops a car. I guess that's what make you think there is a much bigger chip shortage overall.
There's a tiny few chips that are short. And it's not systemic.
So, care to estimate what percentage of chips are not available? What percentage of groceries are not available? It is demonstrable that the labor force participation went from ~63% before COVID, to 60.2% at the lowest in COVID, back up to 61.7% [1]. That sure doesn't seem like there a massive labor drop. I'd guess it climbs back up once Delta is more under control.
Also, let's be fair, most of the "critical reporting" under Trump was not "The administration forecasts x% economic growth, but experts disagree" variety, it was more like "Wait, did the president just tell people to drink bleach, or was it supposed to be a joke, in which case which part was a joke and which wasn't?" variety.
Nonsense. Certainly, the outrageous statement you mentioned was critiqued, but relatively mundane ones were too, such as the president's prediction of vaccines before the end of 2020 (correct), the president's desire for low interest rates, the president's desire for tariffs, the president's desire to end wars, etc.
Many many articles were written directly critiquing boring parts of Trump's economic policies.
Here's a 'fact check' from the New York Times when Trump announced he wanted lower interest rates:
https://www.nytimes.com/2019/07/19/business/economy/trump-in...
For example, here is Trump's statement:
> Because of the faulty thought process we have going for us at the Federal Reserve, we pay much higher interest rates than countries that are no match for us economically. In other words, our interest costs are much higher than other countries, when they should be lower. Correct!
There is only one 'fact' mentioned here, which is that our interest rates are higher than other countries. The times admits this is true. It says:
> It is true that the Federal Reserve has raised interest rates nine times since 2015, leaving the federal funds rate, its main policy tool, at 2.25 to 2.5 percent. That is, indeed, far higher than rates in advanced economies, including the eurozone and Japan, where some policy rates remain in negative territory.
It then goes on to 'fact check' the opinion based parts, and instead of disputing fact, it excuses the feds actions.
Can you find me a NYT 'fact check' for the Biden's administrations claims the inflation is transitory? Of course not, because for a democratic president, the NYT extends the privilege of not fact checking one's opinions
If the dominant viewpoint on FB was the opposite viewpoint a la every other social media outlet, we most likely wouldn’t be having these discussions about FB right now, or at least not anywhere near this degree.
If this was obviously the case then why didn't you make a ridiculous amount of money speculating in the stock market or other markets?
Because the inflation being referred to being transitory was from the central bank's monetary policy, but the inflation we're seeing for many things is from supply-side constraints. The why of a thing happening can be just as important, if not more so, than the what happened.
People were expecting demand-pull inflation ("too much" economic activity), but we we're probably seeing is the cost-push variety:
* https://en.wikipedia.org/wiki/Inflation#Keynesian_view
See for example Shipping being >4 times higher than the base line of January 2019:
* https://www.oecd.org/economic-outlook#GDP-growth-projections...
The same thing can have multiple causes, some of which many be more easily predicted and/or modelled.
Also, this begs the question for what is considered "transitory": 3 months? 6? 12? Other?
The fact of the matter was that inflation was expected because of the spending surge, but that 'transitory' meant that it would be 12-18 months, some using the spending of the Korean War (as compared to the Vietnam War spending):
> The Korean War started when North Korea invaded South Korea in June 1950 and ended with an armistice in mid-1953. As displayed in the following figure, US inflation soared in late 1950 but returned to around 2 percent in 1952 and 1 percent in 1953.[3]
* https://www.piie.com/blogs/realtime-economic-issues-watch/in...
* https://www.nytimes.com/2021/02/07/opinion/covid-biden-econo...
It looks kinda like this but with a curvier handle:
https://www.amazon.com/Handheld-Toilet-Adjustable-Pressure-F...
You don't need a fancy motorized electric thing (I don't trust cleaning all those little nozzles and angles). I started using this after I stayed with a Muslim friend in Morocco years ago. I had no choice but learn, and now I'm hooked. My partner thinks it is gross, tho. /shrugs/
But how is it gross to rinse a dirty part of your body with potable water? I think it's grosser to use the bathroom for solid waste and expect rubbing it off with tissue paper is going to result in an equally clean outcome compared to rinsing with water.
https://smile.amazon.com/gp/product/B00A0RHSJO/ref=ppx_yo_dt...
My wife still refuses to use it, even when we were still scrambling to find TP.
If someone shares that they installed a bidet, I thinking asking which model is a pretty reasonable followup.
I was thinking that, too, before I bought the $38 Amazon special referenced in other comments below. To get heated water, I'd have to run wiring and an outlet, and...oh, screw it, try it without the heat and if it's not acceptable I'll buy a better one and do the electrical work.
phhhhht, it's fine, and I'm glad I didn't go to the trouble. It's a nice-to-have, but not worth tearing apart drywall to run wiring, IMO. OTOH, if you have an outlet in a convient-to-reach location (e. g., under the toilet), then YOLO.
"Old work" electrical boxes are specifically designed to be added without tearing apart the drywall (other than making a clean hole, obviously). The lack of romex staples over a fished wire in such scenarios is typically acceptable by code. Now if the bathroom isn't immediately above a basement or immediately below an attic, it might indeed be impossible to avoid some demo.
No idea how they do it in Japan.
Same here.
Several years ago I went through a period of bringing in 1/8 of my previous income over a stretch of two years. I had to tap into deep savings to stay afloat. In that stretch, I realized how much money was wasted on things that had absolutely no positive impact in my living situation.
When the pandemic came around, I was blessed in keeping a stable job and continued to earn a comfortable wage, yet I found myself going back to a simpler mindset.
And you know, I’ve been a lot happier. For example, I used to eat out all the time because I never had time to cook. Once that changed, what became one of my favorite meals was (apparently) a depression-era staple. Go figure.
We’re so conditioned that in order to be good Americans, we have to be good consumers. The problem is, it’s gotten to an extreme level, and now we’re seeing how our out-of-balance lifestyles are actually problematic. Sure, there’s been ample profit, but these habits exact other costs we don’t see until it’s too late.
Which one?
https://livinghistoryfarm.org/farminginthe30s/life_04.html
"During the Depression, this self-sufficiency carried over into their social life. One-dish suppers and church potlucks were important ways to have fun and share food. On radio and in women's magazines, home economists taught women how to stretch their food budget with casseroles and meals like creamed chipped beef on toast or waffles. Chili, macaroni and cheese, soups, and creamed chicken on biscuits were popular meals."
Eastern European comfort food. :)
What a waste. I’d go to the bookstore, buy a stack of books — because I wanted to read and relax — only to fall asleep because I was so exhausted for running around. I’m kind of ashamed to even admit I lived a life like that.
But one positive about stockpiling those books over the years: the pandemic have me ample time to read some of them!
I had a strangely opposite reaction during Covid: Recognizing that local restaurants would struggle, we doubled or tripled our usage of restaurants, plus a bump in tip on top. This was takeout, of course, but they would normally be dine-in experiences).
We still lost a couple of our favorite restaurants to closures but on a whole, the town came through pretty well.
Turn the cynicism down a bit, will ya?
If anything, I think the restaurants that have already closed down, or possibly the ones with a better financial sense then the majority.
Seriously though, I'm glad I don't need a car, computer, or home repair. Friends in tech are telling me 50-100 week lead times on parts. (Like the Intel NIC article on HN last week.)
Anecdotally, since the early 2000's I have had trouble finding contractors to do small home improvement jobs (under 50k). For at least two decades, only big jobs get bid, the rest require handymen. Not that I have a problem with handymen, just that they often shouldn't handle jobs that really require a team. So it feels like the comment about construction has never really been alleviated in my experience. It's like airlines and baggage fees: they told it is was due to 9/11 and fuel costs, and were only temporary, yet they persist.
I've noticed plenty of products that I used to order on-demand now having multi-month lead times - like my contacts. My doctor gave me ten lenses, but said I might not see my annual order of lenses arrive for six to eight weeks. I guess I'll get used to readers :)
I have the impression a long awaited crisis is finally coming. Remember the stock market going up and up and the busloads of many invested in tech and ML?
At some point the bubble had to explode. The COVID-19 crisis was an unexpected black swan which is acting, belatedly, both as a retardant and as a trigger for the global, systemic, financial and economical crash that usually happens once a decade.
I actually think repair and remanufacture is a great place for growth in this area. It's a lot easier to enter than full-blown factory production, AND it will help a stuff-rich society get some real utility out of all that crap sitting around in storage units, closets, and landfills.
Maybe I'm just in a good mood but I'm actually kind of excited for this.
[0] https://am.jpmorgan.com/us/en/asset-management/institutional...
People normally spend a lot of their disposable income on travel/bars/dining/concerts/experiences/other similar categories that don't involve a lot of imported goods per dollar spent. Last year they shifted a lot of that spending to stuff, and when much of the population does that.....that buys a lot of stuff.
Anecdotally, among most people I know, that balance of how they spend their disposable income still hasn't returned to it's pre-pandemic state.
> One possibility is that Americans adopt a sustainable, ascetic, and homespun lifestyle that reduces our dependency on goods that activate the global supply chain. If you can seriously envision such a world, I envy your gift of imagination.
> The best solution to the Everything Shortage is to have a policy to make more of just about everything.
Well, is it? The pandemic will pass but the various environmental crises created by the “more of everything” policy probably will oblige reduced consumption in some form.
I have no idea why and I didn't question it. They said they ordered 200 and they got 14 of them. I only needed 6.
Edit: What's wrong with asking a simple question?
In plumbing, you find a 2" pipe and a 2" elbow. I would have assumed it translated the same in fencing so that a 2" post has a matching 2" fitting. It doesn't matter if 2" represents ID or OD, but within the same industry I would assume all measurements were applied the same.
Were you implying surprise that the $22 price was lower than they were before the recent craziness or that the price was nearly double the original price. That's what I was attempting to get to in my original question. I didn't get ask explicitly, as I was hoping to get there on my own. However, my simple asking of a question to help me understand caused other readers to suggest I was wandering too far from subject. Pfft to them anyways.
But the OP sentence is like a sudoku. 2 3/8 is ambiguous. It could be 2 pipes or a measurement. If you read all the way to the end you see that he bought 6 pipes so it must be a measurement.
This would be a great test for an AI language comprehension system though. Perhaps you are an AI?
So the numbers actually do matter. As I stated in another reply, I'm just not a fan of fractions especially in written sentences.
Edit: Or if it was actually $26 per 2.375" pipe and the new prices after craziness was only $22 causing the reaction to go in the other direction.
It was more expensive PER PIPE for the 2.375" pipe BEFORE and it is cheaper now. So I don't fully understand why, if there's a shortage, they wanted to price it lower. :shrug: I'm happy I got some at all.
Yes. I needed some simple parts for a home repair job I'm doing. In the before times I would have been able to find them all at one Home Depot, in abundance. I had to go to three Home Depots, two Lowes, and one Ace Hardware to find everything I was looking for.
All manufacturers, regardless of label, get their cast-iron parts from the same place in China. This isn't for price; we're talking about different brands that range in price, for this tool, from $500-$2800. The top of the top end is what I purchased, because I had extra money due to no travel during covid. It is built in America with American parts, except the cast-iron; it still has Chinese cast-iron.
The reason was because of environmental regulations.
So, if we do shift manufacturing back, we need to either be cool with shit-tons of pollution, or be searching desperately, now, for solutions to that pollution.
To be clear, I desperately want more made in America goods. The quality is just better. From woodworking - Pony clamps were made in Chicago, Il, and are still the best clamps your money can buy. Now they're made in the clamp factory in China and the quality shows that shift.
If we want to bring manufacturing back, and we want to continue to with today's low prices, then we need to be cool with pollution.
Dealing with byproducts can definitely be done. It just has costs and those costs have to be passed to the consumer in way way or another.
And that's true regardless of the factory's physical location. It's just a lot easier for Americans to ignore when it's out of their sight.
We either need to be okay with the pollution being here, in our yards, or work to fix it now, which inherently comes with a price increase.
There are other tech innovations on the horizon that I hope will further improve the issue. For example, Canada now has technology that's upending Al manufacturing reducing GHG emissions. There's a demo smelter with this new tech running in Canada. Pretty secretive, and not yet producing at scale, but it's game-changing. I have some knowledge of this speaking to experts in the Al industry. Here's a snippet from an article[0] that talks about it:
Elysis has developed a process that substitutes carbon with inert materials—it won’t say what they are—to make the anode that conducts the electricity causing the chemical reaction. “We use noncarbon materials that do not react, and as a consequence you get the separation of aluminum on the one side and oxygen on the other,” says Christ, who’s spent 36 years working to create carbonless aluminum. “It’s absolutely magic how we do that, but the explanation is very simple, actually.
After successfully developing an emissions-free prototype smelter that produced a small amount of green aluminum used in some Apple laptops in 2019, Elysis built a pilot plant in Saguenay, Quebec, about five hours northeast of Montreal. Rio Tinto and Alcoa don’t allow photos to be taken of the closely guarded factory. Even knowing the measurements of the layout could tip off competitors, says Vincent, who’s now chief executive officer of the joint venture. “You’re the only person on the planet who will see this, other than our board,” Christ said to a Bloomberg writer.
Not a problem that can be solved overnight – we've eroded manufacturing expertise and capacity for various reasons over the years, but I hope culturally and politically, we push ourselves to create new, greener tech and move towards local manufacturing.
[0] https://www.bloomberg.com/news/articles/2021-04-21/with-a-pu...
It's also because shipping a 100 pound lump of iron from China is too stupidly cheap.
Shipping something of that weight halfway around the globe should not be cheap. That causes a lot of perverse incentives.
Focusing on the redistribution of income and goods is natural for today’s progressives, who tend to emphasize the virtue of equality. One lesson of the Everything Shortage is: You cannot redistribute what isn’t created in the first place. The best equality agenda begins with an abundance agenda.
Edit: It should be pointed out that your other posts in this thread only further highlight your own divisiveness.
Come on, it's probably true for a lot of things.
Likewise someone in a poor third world country sees them as working class and people complaining here as rich but a whiner.
Because it is not easy to hire C-suite executives who makes careful decisions to steer the company in the right direction. Companies are subject to profit and losses. Its not static. Do you know how many round of interviews there are to hire C-suite? >16 interviews over a period of 3-6 months.
Workers are in abundance competing for the same role. If I were hiring between 100 workers, everyone put our their bid of the salary, I would be looking for best offer and best quality. That is in-fact a reality of the free market.
There is nothing stopping you from creating your own company and paying out your workers what you think is fair. I even encourage you to do just that. But to complain that all rich band together and create this working class and pay them low-wages is simply irresponsible of yourself.
If your education has misled you I am sorry.
Most normal people just want freedom to work, freedom to trade and pursue their own interests and helping those in their circles, not being enslaved to everyone else.
Then they should welcome negative interest rates because that is exactly what they do.
Just look at any other developed country in the world to see more reasonable social welfare programs
Also - do not confuse socialism (as in economic system) and social democracy (political system).
Political systems are not separate from economic ones.
Why did their roadmap lead there? Essentially, because it was against human nature. It turns out that "work for the good of all mankind" doesn't motivate as well as "work for the good of yourself and your family". They had to add "work for the good of all mankind, or be punished" in order for the system to work at all.
Now, the really interesting question: Will any system that has an agenda of economic equality end in the same place? Can any system have that as a goal, and produce a system of governance that isn't (approximately) equivalent to the USSR version? I suspect that the answer is no. If your humans have the same human nature as the humans of the USSR, then you wind up running into the same problems that the USSR ran into. If your system doesn't account for human short-sightedness, selfishness, greed, and laziness, it isn't going to work in the real world.
I've heard this counterargument against socialism/communism for a long time, and it always sounds like a form of "magical thinking" to me. Asserting the tautology that "humans are naturally greedy" when if you know any actual humans, you know this is not true.
Short-sightedness, selfishness, greed, and laziness are all easily handled by a functioning criminal justice system, and public education system. At least in THIS country, we willfully subverted and destroyed these institutions, over a long period of time. For various reasons, but mostly because the haves wanted it this way. The same happened in the USSR.
A few entitled and already very wealthy people are greedy. Most of the rest of us will ACT greedy when they've been deprived of basic necessities by a crooked and rigged system. But by and large, most people are not inherently greedy.
You really think we can educate short-sightedness out of people? Or laziness? I think you're kidding yourself.
But more: You think "the haves" are greedy. But the haves usually got the good education. It didn't fix the problem.
And, even if the majority of people are in fact not greedy (or power hungry), it only takes a minority of greedy, power-hungry people to ruin things. Take the USSR. Those who were power-hungry and ruthless wound up in power. They produced what such people produce, no matter what the ideology and the rhetoric said.
If you're going to create an ideal system, you have to keep those people from ruining it. And the answer isn't to create a system powerful enough to keep those people in check, because those people will be drawn to the power they can have by running the system. Soon enough, they'll be in power - if not this generation, then the next.
Utopians always bank on the perfectibility of human nature. The available evidence is strongly against that view of humanity. And no, fixing the education system and the criminal justice system won't do it. They will help, and we should by all means pursue both fixes. But they won't let us build a utopia.
Ultimately, we live in a society - a rising tide lifts all boats.
Certainly not the person at the very top.
Public companies are just bunch of share holders who just happen to have capital, you could be one too.
I watch birds fly around, and they seem to need no wealthy heir birds, inheriting the right to expropriate the value of surplus worker time of the birds searching for seeds to eat. "We", the poor humans, apparently need the wealthy to have jobs. The inhabitants of Sentilinese Island and the hunter gatherers still roaming around the Amazon seem to make do without these wealthy people bestowing the gift of jobs upon them. I suppose Russians had the beneficence of the czar and his family to thank for their living as well - that is until the Bolsheviks blasted and then bayoneted them all. Somehow, jobs seemed to continue in Russia after they were gone.
Take Japan Airlines CEO. Certainly well paid but does not earn the crazy amounts that western CEOs of large companies tend to earn.
You can have everything you stated as a benefit without the requirement of a person who runs the company having to be wealthy.
The argument here is that without abundance Covid tests don’t make it to the mediocre everything store.
Effectively, we are seeing what happens when people stop working. The system starts to falter and honestly it looks like it could collapse.
Basic income is really complementary to capitalism. It provides a cushion to people on the very bottom, allowing them to stay in the game, and for other people it helps push them out of a subsistence loop and into "maybe I should start a small business" or "Hmm, I've saved enough that I could pay my bills with basic income so I could retrain on this new technology" etc.
There are a huge number of inputs going into supply chain breakdowns, and I find all of these takes to be wildly oversimplistic.
Taking a look at even just one aspect, the chip shortage: what you're seeing is a combination of underestimated demand (manufacturers assumed demand would decrease during Covid), bottlenecks in production, factory shutdowns, inflexible scheduling and sourcing, transportation difficulty, increasing demand from both companies/individuals who have shifted to remote and from cryptocurrency attention, etc...
And all of these shortages affect each other too, increasing and redirecting other goods and services, which can form complicated feedback loops. Chip shortages make transportation harder, which makes it harder to manufacture chips.
Employment is certainly a factor, but it's also certainly not the only factor. We are seeing stress fractures in a global system right now. There is no one cause (other than I guess the existence of Covid in general), and there is no single, one policy that anyone, Progressive or Conservative, can pass to fix the problem.
Anyone (Progressive or Conservative) who is trying to sell you the current shortage as simple proof of their ideology is not doing a good job of looking at the issue from a holistic perspective.
The problem with the rich isn't that they earn too much, it's that they spend too little on consumption or investment.
You might say housing, but I don't think I've heard anyone call for the "redistribution of housing", because that doesn't really make sense. Progressives generally call for universal housing, and redistribution of wealth to achieve that goal.
There’s a fair amount of research on this, here’s one paper if you’re interested in learning more: https://www.huduser.gov/portal/periodicals/cityscpe/vol23num...
To be clear, I'm sure you can find some random Twitter user who thinks we should eat the rich and then give their homes to the homeless, but I'm thinking about progressive politicians and writers and people significant to the movement.
The first step is kicking out existing residents, and the second step is buulding, and the the third step is bringing in new, richer residents.
If you are referring to tenants possibly being lower socioeconomic status than the previous owner.. that isn't redistribution. If anything its the opposite, since now the property owner is probably a corporation
That seems like a particularly cogent example of the Free Market/Capitalism/Invisible Hand at work, at least to me.
The curious thing, again, it seems to me, is the idea that other people who don't have an ownership interest in the "properties purchased" should have a veto in what the purchaser can do with said properties is presented as the Free Market/Capitalism/Invisible Hand just doing its thing.
If the new zoning regulations prohibited building single family housing, well that would be (again, it seems to me) bad too. Do they?
Good luck to any politician that goes up against that!
The general point here is: what good is a right to X during a shortage of X? As in "what good is a right to food during a famine?"
Healthcare is an example of something we have a shortage of, especially during the pandemic. Are there progressives calling for redistribution of healthcare? I don't think universal healthcare implies redistribution, I think it implies more healthcare that costs less.
I think the latter is a much worse situation, and it’s the status quo. I agree that increasing supply is necessary to solve both aspects of the problem. But keeping people alive should be the most important priority of any health care system, not keeping wait-times short for non-critical procedures.
https://www.commonwealthfund.org/publications/podcast/2018/o...
We have a shortage of physicians today. The primary bottleneck in producing new licensed physicians is a lack of federal funding for residency program slots. Congress could increase funding for that immediately if they wanted to.
Market demand for healthcare services is essentially infinite. Regardless of the funding model there will always be some type of rationing. Some patients won't get everything that would benefit t them.
"Medicare for All" is a convenient shorthand, it doesn't literally mean "just let everyone sign up for Medicare and change nothing else".
> Market demand for healthcare services is essentially infinite.
This is kind of an insane claim to me, can you back that up somehow?
Sick people generally want the best possible treatment with extensive personal care by expert providers. Obviously it's not feasible to give that level of service to everyone.
Where the quote goes wrong I think is bringing up progressives as if they're at fault for the current lack of abundance. The situation in the article is one where our attempts to create a massive economic surplus through global free trade have backfired. (Global free trade being a conservative/neoliberal plan where an abundance agenda is pursued by capitalistic methods.) This situation is a reminder that in capitalism, we optimize for profit, and optimizing for profit generally means having very little wiggle room for disruptions to a system. Making sure an abundance is available even during times of disruption is something that likely requires government intervention, not a lack of it.
It does sound a bit circular though - if developers are unwilling to build new housing if they're forced to make some of it affordable, why would they ever build any affordable housing at all if left alone by the government? I guess it depends on the details of the specific policy, so maybe too big a discussion for this thread.
One big caveat here is it requires people to actually live in the housing. If real estate is being bought and sat on as a speculation tool (or used as something like an air B&B instead of a rental), it won't actually meet the demand for habitation. As such, some sort of regulation is needed to ensure that housing is actually either lived in or rented out.
Second issue is that, of course, NIMBYism is at least as big a threat if not more as price regulation. If things aren't allowed to be built due to local authorization either being impossible or the approval process taking ages to complete, requiring affordable housing be included is the least of your worries. Getting into the many flavors of NIMBY would indeed be too big a topic for this thread, but the overall effect on housing creation is definitely awful.
Edit: As a note, there is a massive incentive for those who currently own property to not want housing to be affordable. Lack of supply drives the prices way up, and the people who have seen the worth of their housing double in the last decade don't want prices to go back down to a reasonable level. Since homeowners generally make up a sizeable portion of voters in a given area...it's not too surprising that people constantly vote in ways that make building harder, no matter how hard that makes life for the next generation.
How much does government regulation itself play in increasing the price of building a home to begin with? Some estimate 20-25%. Obviously we need some rules, regulations and standards, but I think we're also causing some of this issue and not factoring it in.
https://www.constructiondive.com/news/nahb-regulatory-costs-...
https://www.forbes.com/sites/scottbeyer/2016/09/30/the-verdi...
https://www.seattletimes.com/business/uw-study-rules-add-200...
According to the Bowery Mission [2], in the same time period there were 80,000 homeless people in NYC. So just in Manhattan, there were enough vacant homes for every homeless person in all five boroughs to get their own — with over 15,000 to spare!
[1] https://www.census.gov/library/visualizations/interactive/20... (change state to New York, click "Housing Unit Vacancy Rate" and then click Manhattan on the map)
A janitors closet in NYC stops being a place you want to live when you have to be locked down in it
They don't consider that the more likely outcome is them living in squalor while also going to a shitty job which they hate.
No, no, no. That won't happen. Not to them.
We need a name for this ideology, the Mad Max mentality? It legitimately reminds me of those monster trucks driving through the climate change wasted landscape with people spitting what little gasoline they have left into the engine. shiny and chrome!
I can easily pay extra or wait out the shortages but if you're just scraping by it's much harder to survive if the shelves are empty.
One zombie pulp fiction author - by the name of Jonathan Maberry - got it right though. In his work they drive quads fueled by ethanol.
Additionally... I would happily sacrifice paper towels and vinyl for seats if it created more equity... but that's not what needs to happen at all. The article creates a false dichotomy.
An additional, more radical view point would be that the term "redistribution" is misleading as wealth is generated by the worker and then extracted by private owners.
And what do they do with it? They cripple their ability to make things in exchange for short term gains:
> For decades, many U.S. companies moved manufacturing overseas, taking advantage of cheaper labor and cheaper materials across the oceans. In normal times, America benefits from global trade, and the price of offshoring is borne by the unlucky few in deindustrialized regions.
That primarily applies to monopolies like land or ISPs. Most markets work well because there is a reasonable amount of competition and the supply of goods can grow according to demand.
Can’t print toilet paper or paper towels but random I need a hook to hang something, or a fitting for a pipe that’s not under load, tons of stuff on thingiverse.
Also, last year, I wasn't able to get filament for about 3 months due to the pandemic.
At no point was it hard to buy a 1KG spool of PLA as far as I know.
It's been really good for printing brackets and things and simple replacement parts
Most US industries will be given significant bail outs from Main Street, while Main Street itself is left to fend for themselves on meager public support pillars (if they even manage to get through to a person that is able to help them).
I think COVID-19 was a test of our global supply chain and we have failed. If a virus mutates and is even slightly worse than COVID-19, then we are truly fucked.
https://www.nytimes.com/2021/08/20/us/abbott-covid-tests.htm...
not really a global supply chain issue is it
What is in them? Guessing, specialty paper, plastic, reagents, probably plastic &/or cardboard packaging... machines to make them if the production line didn't previously exist?
If theyr'e all local/regional, it'd be great, but if there's just that one missing component...
I hate that I've grown so cynical, and I don't know what to do with this hate, to be honest. It's not healthy, I'm certain of that.
There is no shortage of anything. True shortages are determined by nature, not by the economic manipulations of financiers and globalists, which means that most of the shortages are the consequences of policy decisions not natural events.
Take something such as the shipping shortage. During their Covid crisis a lot of shipping capacity was taken of the markets. Some companies actually destroyed some of their ships.
18 months later there is a shortage of shipping capacity, alleged. I don't think I am that bright, but if whole loads of shipping capacity are taken of the market in what is bound to be a temporary downturn, is it surprising that there will be shortages?
Lets take the truck driver shortage in the UK. The UK benefited from cheap labour from Eastern Europe as a result of Brexit, which led many qualified British drivers to give up the job because the pay was shit. To be honest even the cheaper labour from Eastern Europe considered it to be shit. Then you have Brexit followed by Covid, and many of the drivers from Eastern Europe have seen that the grass is not so green on the British side and don't see themselves coming back.
As for the truck drivers there about tens of thousands of fully qualified HGV drivers who simply not interested in the job. There is no shortage of HGV drivers, there is a shortage of employers who are willing to pay decent money not just in the short term, but in the long term to get the qualified drivers to commit. Funny how the media never mentions that. Truck drivers need to take a medical to get on the road, and even the NHS doctors who are supposed to be doing them are not doing them anymore. Funny how that never gets mentioned by the media.
In effect industry should stop blaming the govt for their own questionable pay policies. The country of zero hour contracts is feeling a labour shortage. Surprise!!
Then you have gas shortages. Remember Nordstream and Nordstream II, which the US government did its best to sabotage? Well Germany needs more gas and it isn't fully up yet. Are US gas companies ready to fill the gap?
Then of course you have this manufactured pandemic. Just because there is a new illness around doesn't make it a pandemic, a definition which was changed by WHO in order to serve a global agenda. The "developed" world adapted a "treatment" policy which involved taken painkillers and hoping that the disease would not develop enugh to warrant hospital admission. Even then they cooked the definitions to allow every positive test to labelled as actual disease even if there are no clinical symptoms, and use it as an excuse to warrant economic lockdowns.
Announcement of shortages isn't about real shortages. It is simply a way of priming consumers to expect higher prices in the future, as though demand has risen when it hasn't.
It is time the general public stopped being hoodwinked by mainstream media who are simply the mouthpieces of Big Finance which has not taken over Govt in the Western world.
If they actually manage to pass either stimulus things are going to get really bad. There's not enough supply or labor for the bipartisan "bridges and roads" bill. There's not anywhere near enough labor for the partisan social bill.
If they actually pass it, given the way government runs, they'll overpay for everything to get supply, which costs extra, but worse it's going to take supply (both material and labor) away from regular businesses and people.
Actually there is enough labor. What there isn't is a fair (inflation and productivity adjusted) wage for that labor.
>but worse it's going to take supply (both material and labor) away from regular businesses and people.
Isn't that a desirable trait? Shouldn't people pay more for things if they really want them? Why can't we let the "market" handle this?
That would imply there are people sitting around doing nothing waiting for higher wages. But that's not the case, there simply are not enough employees right now.
> Shouldn't people pay more for things if they really want them?
You just need to give the economy some time to catch up, and let supply catch up to demand.
> Why can't we let the "market" handle this?
Because the government is not the regular market. They are able to outbid others, and cause shortages that don't help anyone.
I should have made this clearer: I'm not saying never pass this funding, rather, just wait a little for the supply chain to catch up.
Anecdotally a few of my neighbors have quit their minimum wage jobs for higher paying ones. There are enough employees at those wages. I know two people who have quit the job market and are living with their employed SOs/parents. Raise wages and people will sign up.[0]
[0]: https://www.bls.gov/news.release/pdf/empsit.pdf
The number of persons not in the labor force who currently want a job declined by 835,000 in August to 5.7 million but remains higher than the level in February 2020 (5.0 million). These individuals were not counted as unemployed because they were not actively looking for work during the last 4 weeks or were unavailable to take a job. (See table A-1.)
I had a big argument with my friend who runs a small sales agency and complaining that he was not finding any sales people for minimum/commission wages. He was losing them to agencies that were paying a $15/hourly and was arguing with me that $15 was too much when you included commissions. SMH. Funny how "market rates" only work one way.Independently of what the "left" or the "right" is telling you, It's not hard to understand that if you rely on foreign workers to do certain jobs and they leave, you'll have a (temporary?) problem.
From my point of view, anyone saying that brexit isn't to blame for any of the shortages is just as wrong as those who blame brexit for everything.
A problem can have more than one cause.
The rest of Europe is dealing with the pandemic, we are dealing with the pandemic and brexit.