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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (35936)	9/5/2021 11:57:55 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 97956

Covid just gave us a peek at rainbow and unicorn liberal policy. Pseudo UBI and expanded unemployment mixed with eviction moratoriums have business screaming for workers but few willing to work. Why should they when they can live rent free and spend without working. They are more than willing to suck off the government teet rather than be productive. That right there is why the system fails. I recall having an excellent speaker when I was in the military from a contracting advisor for western companies trying to do business with the Soviet union. He pointed out how the Soviet system always tried to do the least work rather than produce useful goods. The government wanted padlocks to secure valuables. They simply wanted what was considered standard padlocks like they always made so they ordered 100,000 of them. They received 100,000 tiny padlocks that were useless because they were too small and frail to secure or fit on anything. So they figured out how much 100,000 standard sized normal padlocks weighed and ordered them by weight. They received 4 gigantic padlocks weighing the total amount of the order but waaay too big to fit on anything. Both contracts were fulfilled but were useless. There was no incentive to produce viable products because there was no profit incentive. Without competitive market forces, work ethic erodes. Nevermind that price increases are all but guaranteed if UBI becomes standard. The UBI amount will just be added on to the price of everything. We have seen that with every program the government tried to "help" with. College tuition is the most recent example. Business just says I know everyone has X dollars so I will charge X+$$ profit + cost and get more profit. While I'm agnostic on if inflation is going to be a problem ahead or not, I do think that the recent price increases are not going to recede permanently. In economics, price is sticky so even if inflation is transitory, we will at the minimum settle back down to a higher level than we started before QE injections, extra unemployment and stimulus checks etc. In the end, joe six pack just got knocked back another notch from being "helped".