Did you know that if you take a job at Walmart (WMT) that after 90-days, you are eligible for free college tuition? Amazing, is my first reaction. Then, I thought. Why the change of heart? Walmart added a slogan, "LBU." It translates to Live Better U. They say that they want to provide education so their workers have a better future. When did this epiphany happen? Was this humanitarian, Christian charity always just below the surface of corporate dealings? If so, why didn't it manifest itself when I was collage age? Surely, the profits were always there. It is simple...today,
Workers Needed.
When you think about it, one realizes this corporate giant was always against unions and employee benefits, but did not have to bow down to labor when there was always more workers than jobs. Actually, the equation has not changed, but the virus has changed labors view of risk - work is temporary and life is permanent.
Prediction
Some Republican think tank will come up with this stimulus idea. If a firm offers higher education, the government will give that firm tax credits to cover the costs. This is is how the GOP (Guardians of Privilege) thinks. By the way, Target (TGT) announced a similar school program.
Of course, big money is hoping that technology will come to its rescue. With AI, they could get by with fewer jobs because they would need fewer people. This is the continuous tug of war between the Haves and Labor. The Haves problem is compounded by the virus. It has caused workers to miss work. The result has caused disruption in supply chains whether at a factory or in transportation out of a plant. The complaints about the virus is behind all the noise over vaccination. The outlook is cloudy. Why?
Demand...
It never really went away. However, the supply is lacking. We all see the outcome in the final analysis, the price. It is up and up for everything.
Inflation comes when demand exceeds supply. It comes when your dollar declines in value. It comes with poor leadership. The US has the worst in all three ways. It has the Federal Reserve. They have already been shown to be wrong on all levels. The chair, Powell has revealed his poor decision making in his answer to the question of inflation. His timeline went from soon to months and now, to the end of the year. If he was referring to the physical year, it ends next month. Of course, he will "clarify" that comment to mean 2022.
A Daydream...
If I was questioning the phony chairman, I would ask him about the "transitory" inflation as it pertains to housing. It is up 16% year-over-year. Can you even figure out your last ten years of wages to see if they rose by 16%? Probably not. This leads to one of your biggest costs...
Housing and Shelter
Housing is not about to change in price even if another recession appears. Why, you ask? Simple: housing construction vs. population growth. The US birth-rate is low, but immigration is off the charts. We build roughly 1.6 million new homes a year. Population grows by 150,000 per month. Demand exceeds supply. This is not a yearly forecast. This has been going on over a decade. Pent up demand is way too high. The high price for homes allows the rental market to also raise prices.
Housing and shelter will continue to rise, but the real danger is that we become a rental nation. Society will lose their respect for private ownership. This is central to our nature, our American dream and constitution. Our nation needs to build more homes, period! We need to address the stepping stones of real estate and home ownership: the starter home, the family home and retirement house. However, the other side of the coin is costs. Demand will add to inflation. Demand will make resources more expensive. One idea...?
Thin the Forests!
Push logging again in our vast nation. We make wooden houses. With cheaper wood we bring the price of lumber down. At the same time, we cut down on wildfires. However, we at Evolution would not want to see clear cutting. Whole sections of the country with just tree stumps. Do the cutting right. This means planting new trees for the next generation. America needs a better future. Peace.
