Inflation etc

[Ol Mucky]

I’ll see if I can capture my thoughts clearly into typing.

so first off “they”‘said the rate of inflation went up to 3.1%
my food bill says otherwise
looking at Home Depot etc I say otherwise.

money is being pumped Into the system when it shoiuldnt be.
seems those who have money, are benefitting most from this.

people won’t get a job under $17 hr (it’s cheaper to take the unemployment as well as the fed monies)
biz owners can’t get employees, if they do, they have to pay more per hr than what they normally would.

there are still millions not working but there are multipe company’s big and small that have the need.

with raw materials going up, demand for workers going up, I can only assume that wages will have to go up.


but once the “ free” money runs out, people will HAVE to go back to work.

will they demand and get the higher wages? Can the businesss pass the new costs onto the consumer and the consumer actually be able to afford things?
will the wages ever go back down??

Couple all the above with what COVID showed us we CANNOT continue getting cheap shit from China. Mainly our meds, Med supply’s, but toasters, TVs all of it. We cannot use them.

Personally, I just don’t think any of it is sustainable. The feds printing money, current cost of living, the higher wages, the bloated market. The gdp fell 1% during our recession. The 1930 depression it fell like 15%

im not being doom and gloom but I cannot beleive of all I mentioned above that everything will be honky dory

[Lprizman]

Payback is going to be a bitch....and it's coming...under the wrong leadership

[KMac]

You need to pick up the phone and call Pelosi, Schumer and Biden. They could use the help in understanding the consequences of flooding the market with "cheap cash" and the cost of rising inflation. I mean, Pelosi actually said that for every dollar "we" spend in welfare, the government gets $2 back.... She's a smart one, that girl..

The look at everything so linear. This is their thought process:

Increase minimum wages to $15 ---> Pay unemployment so the REAL minimum wage is $17-$18 an hour before they will make more by going to work. (However, we know a lot of these people will sit at home and continue to collect easy "free" money vs working.) ----> "Force businesses to increase the cost of goods and services to pay new "livable wages". ----> Cost of Living goes up, so companies are forced to pay ALL employees more to adjust for the COL going up.----> Everyone makes more and the Federal Government takes in record "revenues".

Simple and clean.. However, that doesn't happen, this does.

Flooding the market with cheap cash just makes things cost more. Why? Because the dollar is weakened, therefore worth less. We also know that some companies do not have the "room" to make these mark ups and survive, so people lose jobs. Automation is installed. More people lose jobs. People lose income, therefore can't buy stuff. Market swells with unpurchased goods and unused services because people can't pay for it. Housing takes a hit. Automotive manufacturing takes a hit. The economy shrinks. And the cycle starts over.

[Ol Mucky]

I’m on the same page
Agree with all you said.

[LFBB]

What is even worse is, they are making it hard on the next President that might actually want to fix things.

It's almost like a game plan, lets screw things up so bad that if a good guy wins things will be so bad that they won't survive past the first term.

[fijon]

It's been the game plan since Reagan

[Parker Yacht]

From a Vendor.
"Dear Customer:

As I am sure you are aware the prices for fiberglass, gelcoat, resin, stainless steel and other related supplies have been increasing at an astronomical rate. Availability of parts is also a major concern. We have had to go to alternate suppliers that are charging much higher prices just to keep our customers supplied with our products. We have experienced price increases as high as 40% on some of our supplies since the first of this year. After struggling for months to keep our prices down we can no longer maintain our current pricing schedules. For the first time in our 40 year history we must pass on a mid-year price increase. Effective June 14, 2021, for all orders received for coolers, freezers/refrigerators, and most accessories will increase 6 %. We will honor the current pricing for all orders received before June 14. "

[LFBB]

The house next door to me is under major renovation(s), the contractor gave the price pre-covid then could not get permits as covid kicked in right after the signing. The house is gutted as we speak, the exterior is 95% complete, gutters, lighting, landscaping etc. However with the price increase he wanted to up the price, the customer wants the original price.

All work has stopped as contractor isn't going to take a lose and neither does the home owner want to bear the hit. I know both parties and don't want to get between the two but it's a no win for both, may well wind up as a lawsuit.

[Parker Yacht]

The house next door to me is under major renovation(s), the contractor gave the price pre-covid then could not get permits as covid kicked in right after the signing. The house is gutted as we speak, the exterior is 95% complete, gutters, lighting, landscaping etc. However with the price increase he wanted to up the price, the customer wants the original price.

All work has stopped as contractor isn't going to take a lose and neither does the home owner want to bear the hit. I know both parties and don't want to get between the two but it's a no win for both, may well wind up as a lawsuit.

Seems simple enough, split it 50/50 and call it good.
Lawyer up and it's going to cost more.

[LFBB]

Seems simple enough, split it 50/50 and call it good.
Lawyer up and it's going to cost more.

I quietly tried to mediate things, the contractor has dug in pretty deep saying it wasn't his fault covid hit and he couldn't get permits, but he also didn't build any contingency into the contract for said event. The home owner is more reasonable but says if it goes to court he has to push for the original agreement and show the judge he tried to accommodate the builder by being flexible in writing.
I'm hoping for both parties prices level out(come back down before it hits court) and agree to restart work.

Problem is, owner is paying $2500 a month in mortgage while the house sits there, I also told him, pay the difference in building material or between taxes and mortgage insurance etc he'll be 50K in the hole and still facing court.

[KMac]

What is even worse is, they are making it hard on the next President that might actually want to fix things.

It's almost like a game plan, lets screw things up so bad that if a good guy wins things will be so bad that they won't survive past the first term.

That IS their plan.. Mess it up SO BAD that 4 years isn't enough to undo the damage. That is why Biden tore everything down that Trump put in place in break neck speed.. All those EO's in a matter of days. Of course, no one challenged the unconstitutional ones. That's how you KNOW they are all in on it.

[KMac]

The house next door to me is under major renovation(s), the contractor gave the price pre-covid then could not get permits as covid kicked in right after the signing. The house is gutted as we speak, the exterior is 95% complete, gutters, lighting, landscaping etc. However with the price increase he wanted to up the price, the customer wants the original price.

All work has stopped as contractor isn't going to take a lose and neither does the home owner want to bear the hit. I know both parties and don't want to get between the two but it's a no win for both, may well wind up as a lawsuit.

If they had a signed contract, the business owner may be on the hook if the contract doesn't state the reasons for changes to the quote.. Of course, that's a sucky deal, but it isn't the fault of either the contractor or the owner.

[LFBB]

If they had a signed contract, the business owner may be on the hook if the contract doesn't state the reasons for changes to the quote.. Of course, that's a sucky deal, but it isn't the fault of either the contractor or the owner.

Yeah, the contractor isn't playing nice, sometimes you're the bug and sometimes you're the windshield. Homeowner agreed to give some extra contractor dug in, not smart, he's a local guy, lives on the block, he's going to get a bad reputation and lose big time being a hard ass.

[KMac]

Yeah, the contractor isn't playing nice, sometimes you're the bug and sometimes you're the windshield. Homeowner agreed to give some extra contractor dug in, not smart, he's a local guy, lives on the block, he's going to get a bad reputation and lose big time being a hard ass.

Yep, especially with the homeowner offering to be somewhat flexible. The absolute wrong thing to do is just sit on it, from the contractors side. He may lose more than he bargains for in the end.

[NO WAKE]

It’s just a shame he didn’t have some kind of wording in the contract (the builder) that would protect him from these circumstances! We state plainly in our estimates that parts pricing (right now) will only be honored for two weeks. Meaning....the estimate would have to be approved before the two week time frame has passed.

It stinks but there’s no other way to protect ourselves!

[duckfish]

I learned during the great recession.... all contracts have a fuel and materials escalator clause. I've only ever used it couple times, but it's there if I need it.

[LFBB]

Agreed, as the professional the contractor has to foresee things that are almost unimaginable and being covid was "in the air" he should have foreseen a possible govt. shutdown and who knows what else after that. We certainly got the what else. now both of these men are getting the shaft.