And everything costs more.
I'm pretty detail-oriented. I use two different user-friendly accounting programs to track expenses across all three of my banking accounts and to record sales invoices, purchases, and other business-related transactions. One thing I can tell you is that, compared to last year, nothing has decreased. Every single thing costs more. Everything. No exceptions.
Just looking at basic things like Utilities. We are using roughly the same amount of kilowatt-hours as we did last year and the year before, and our cost is up by over 10%. Same thing with gas; it is up 7-8%. Same with water; you're using the same gallon we used last year and the year before, and you're paying more per month. There's no benefit to paying more; it just costs more.
It isn't like we added showers, air conditioners, or heaters. We're just paying more because everybody pays more; that's the problem. Our politicians don't seem to think that's an issue, or at least they don't act like it is. Yet to me, it's the biggest issue we have: the economy. Someone once said I think maybe Bill Clinton, 'it's the economy, stupid, or something like that.
The value of a dollar is lower than it was this time last year and the year before, which means its buying power is lower. Things are more expensive, so you get less bang for the buck. Gasoline and milk prices are up, and insurance on my house and car has gone up over the last two years in a row, and we have had no claims whatsoever. We are not more expensive to insurance companies, yet our costs are rising in line with inflation. It's unbelievable.
Where I live, there is a building boom that is probably 3/4 over. For the last couple of years, ok maybe four years, I think they have been building like crazy everywhere you look, there's a new apartment or new townhouse. And I'm not talking about a few; I'm talking about 2000 to 3000 units built over time in what were previously undeveloped areas. We've got a building boom underway at gas stations and convenience stores. There have been so many of them that my town had to put a moratorium on new convenience stores. They're not allowing permits to build anymore unless the project is already under construction for about the next year or so. Personally, I don't care what you do as long as we can support it.
There has been no progress in infrastructure growth. There has been really no improvements in electricity, that I am aware of there are no improvements in natural gas delivery, I don't think we have bought or paid for any new waste water regeneration or treatment facilities, and I am pretty sure that from driving around this area, they haven't done much to support the increase in traffic, or the schools or the roads, that goes along with building new places to live and new places to buy things.
The other issue that concerns me greatly is a glut in the market for this new housing, and it's all overpriced. I really don't see how buyers or renters can afford these new units, given how much they cost. I would hate to be starting a life right now. Warehouses, logistics services, Mill and factory operations, and, in large part, the service sector drive the economy in my town. I don't know whether building all these houses is for. A recent college graduate just starting life would probably have to work two jobs to afford one of the fancy apartments they are building. I watched a lot of them being put up, and I would not live in them myself. I've never seen these places go up so fast, with so much corner-cutting.
I talked to a County building inspector a couple of months ago, and he said he's working longer hours, sometimes six days a week, to try to keep up, and the quality of buildings is just pathetic. It is wild that the proposition that you can build expensive housing (that is, overpriced) in such quantities that you think your product is immune to a market downturn is kind of nuts. I wonder what they think will happen to all their nice, new, pretty apartments if we enter a downturn or recession.
It could be that they're building the next ghetto apartments with 40% vacancy rates and Section 8 housing.
I use social media personally and as part of small businesses I am involved in. I have never seen so many people asking for help as I have in the last six months or so. People are asking for rides to work because they can't afford to get their car fixed. They are also asking for donations of clothes because they cannot afford new ones or because they lost everything in a fire and have nothing left. People are outright asking for financial help of various kinds to buy baby diapers or formula donations, and so forth. It is amazing. I know a couple of people who work in food banks around here, and they say the crowds who show up at their doors for help are twice as big as they used to be. I wonder if that indicates that we have something coming that we are ready for? What do you think will happen if our economy actually does fall into a recession?
Things already cost more than they did last year. People in the technology sector (such as those working in IT) have lost about 30% of their jobs overthe last 24 months. That is one in three tech workers who have been laid off. Well, laid off and or eliminated. What are people going to do if they are around here, for example, if money becomes even tighter, who is going to buy all the goods produced in the factories here? Who will pay for new flooring when they don't have a job?
Economists predict that for every job loss in a specific sector, such as technology, there is a corresponding job loss in manufacturing, retail, logistics, or marketing. I don't understand and really don't have any way to predict how much farther this can go before we reach a breaking point. I mean, we may already be at a breaking point for all I know. We used to buy steaks to eat every once in a while, and we don't buy them now because they're too expensive. The cost of meat is crazy. Things like bread, butter, eggs, milk, pasta, canned goods, and cereal are all increasing in price, as if money were no object. It's got to reach a tipping point. Politicians always talk about lowering prices on things like prescriptions or food. Once the price goes up, has it ever come back down? Never in my life have I ever seen prices fall to prior levels.
I mean, at the grocery store prices right now, do you really think any of them will come back down? What has to happen is an upward pressure on wages, and owners don't want that because that increases their cost. There are still jobs out there that pay $10 or $11 an hour, and I'm here to tell you that you cannot survive on that kind of money anymore. You might be able to live in someone's spare room or with your parents, but making $15,000-$16,000 a year is not enough to pay for the gas that goes in your car to get you to work.
When you consider that the price of insurance is up, that the price of a new car or for that matter a used car has went up, that the interest rates on loans for you new and used cars have went up, that the parts to repair your car are up or have tarrifs attached to them, and, the rates that shops have to charge to stay in business have went up, I don't know where they think it's going to end.
On top of that, there are more homeless people in the United States of America today than there ever have been in every city, state, county, municipal area, you name it; homelessness is on the rise. We can't take care of our people who work, and we have more homeless people than ever before.
I'll bet every one of you already knew every bit of this.
I do not have any answers; however, if you didn't know this, you should consider it if you were thinking about leaving your job. If you have a job right now, you should think about it 38 times before quitting to go somewhere else. Right now, you want to be worried about the certainty of where your next paycheck is coming from. I would be more worried about keeping my job right now than I ever would be about whether they would pay a bonus, whether I would be allowed to take a vacation, whether I could cash out my PTO, or even about my workload.
Thankx for reading,
- BigMike







