bobcor,
>>>> . I DO NOT see inflationary pressures abating, I see them accelerating. Look around you. Look at wages, look at real estate, look at energy. I know everyone has been coached to throw them out, but when people make salary demands, they certainly roll them in. <<<<
Since I use to be in the restaurant biz I hear from many restaurant owners the difficulty in keeping servers. A full time server in a restaurant like TGIF/CHILLI's can make over 30,000 and if they really hussle they can make close to 40,000(baltimore suburbs). But even with this type of salary it is hard to keep people since they want more. These servers are now driving Grand Cherokee's. So some are these restaurants are giving bonuses/incentives, which are all additional costs.
Besides the inflationary issues, Im more concerned about the psychology. This wealth effect may become a huge negative towards an individuals psychology. If the economy does change and unemployment increases, how will some deal with a loss of a job. Back in the 1970's everyone know how difficult it was to get a job so they were mentally prepared. Now that so many are filled with the wealth effect many believe that there is no problem getting another job and dont forget the increase in lifestyle. It will be difficult for some to manage a change in the economy.
When I lived in ROCKAWAY NJ, my next door neighbor commited suicide. It was mainly attributed to him losing his business. Lets keep in mind that he was living in a 400,000 house.
Is the AMERICAN Psychy strong enough to handle a strong change in the economy. Yes, but there will be quite a few casualties. |
