Category Archives: The Economy

Scarcity

As we come out of the economic destruction of the pandemic, we struggle with scarcity in every part of the economy. Scarcity of raw materials, scarcity of transport, scarcity of components and scarcity of workers.

Think this isn’t serious? >

unintended benefits of PPP money

Has anyone studied the actual uses of the Payroll Protection Plan (PPP) loans/forgiveness?

Because the pandemic totally devastated approximately 20% of the economy in sectors like travel, events, hotels and dining, it is hard to imagine how these industries have survived, or how the PPP money could have helped them for long. If they are still surviving, they are maybe 1/3 the size they had been before the pandemic. For them it has been tragic. Hopefully, they will come back as the economy reopens. >

Recession ready?

The economists are beginning to say it out loud: the signs are gathering for a recession by the end of 2019. Yes, it depends on the sector, but it is likely you are not immune. Are you recession ready? >

Raising prices?

This week the federal reserve raised interest rates again making them the highest they have been since 2008. The President just directed the US trade representative to level tariffs on about $50 billion worth of Chinese imports; this is in addition to the steel and aluminum tariffs recently imposed.  If you use steel in manufacturing, the prices have already gone up.

Are you raising prices, too? >

Are high rents driving your best employees away?

What had been a growing problem of rent increases of 10-15% each year has resulted in a crisis in the LA area. You say you knew that. You hear anecdotally of families doubling up, and kids moving back in with parents, People are moving further and further away. Rent may be taking upwards of 50% of pay checks.

And if you rent, guess what?

Landlords are hoping their tenants move out so they can raise the rents another 25%. And, there are a line of potential tenants ready to pay that new rent.

Millennials say they never plan to own a house. Is that because they grew up during the Great Recession, saw many families lose their homes and heard their parents complain about the cost of housing?

if no one is going to own, they will be more willing to move for another opportunity. If no one owns, they will not be as committed to the community. It tears at our social structure.

Take a few minutes this week to explore how this is affecting your organization. You don’t have to rescue anyone, you need to be aware of the situation, and how it may be affecting your team. Be creative.

 

 

 

 

 

 

 

 

Illustration courtesy of Economy Watch – Follow The Money