Getting Rid Of The Burden

Salma Zito has done it again:

Café Raymond is a favorite destination and, as usual, both floors, the balcony and the sidewalk tables at the diner are packed with patrons.

None of the people waiting for his signature stack of ricotta pancakes stuffed with blueberries, his home-cured smoked salmon and caper platter or his savory sunny-side-up egg and brisket hash have any idea the man behind the kitchen counter — Ray Mikesell — has placed his beloved restaurant up for sale. He’s calling it quits two decades after he returned home from Baltimore to raise his children and carve out a life in Pittsburgh.

Through tears he says he simply has had enough — not of his customers, not of creating new dishes or specialized drinks, but of all the uncertainty that has dogged nearly every small businessman in the country since the beginning of the pandemic.

“It started with COVID and just over time, the uncertainty, the stress of trying to stay open, the inability to hire people, the underlying tension in society, the inflationary cost of everything you need to purchase to create quality food, that is, if you can get it…” he says, his voice trailing. He stops and pauses to hold it together.

The food costs are crushing him, he said, but so is the cost of doing business, period. His utility bills have skyrocketed, as has the cost of fuel to pick up fresh meats and vegetables from local farms or to deliver food for catering jobs. The costs are crippling, he says, and they are creating a barrier to investing in a business he has loved for so long.

“It just breaks you down no matter how strong you are,” said Mr. Mikesell.

Here’s my take on this.  Every time a politician says he cares about small businesses and their owners, he’s lying in his teeth.

This new crowd of socialists (including, alas, the Socialist Lite Republicans) absolutely loathe small, successful businesses, for the same reason they hate people owning cars: having your own car gives you freedom of movement, and your own business makes you part of a community, a community that binds you to itself because they now have the freedom to decide when, where and what they want to eat, and not have to go at specific times to a dreary commissariat like the hapless Winston Smith in Orwell’s 1984, and be fed the same slop and gruel as everyone else.

And the government absolutely hates that you have those freedoms.

If that’s not the case, please then explain to me why commuter and passenger rail systems are so popular with neo-socialist governments and why, when businesses like that of Ray Mikesell experience the same ghastly misfortunes (created, it must be said, by government), the government policy does absolutely nothing to help those businesses except by ladling out one-time, piddly subsistence-level “incentives” instead of addressing the main issues that cripple both the businesses and their customers:  soaring inflation (created by the government printing too much money), high fuel prices (even though we are the most self-sufficient energy-producing nation on Earth), the double whammy of ever-higher food prices and shortages (in America!!!), and logistical / transport operations that are crippled by (all together now) government regulations.

I know that anecdotes are not data — except that they are, when the owner of a business like Café Raymond is not a statistical outlier, but just one of tens of thousands in a similar or worse predicament.

Explain to me why Ray Mikesell, and all those other business owners, should not just quit and go somewhere else.  Explain also why the millions of ordinary people who are affected by the closing of small businesses and their own personal misfortunes should not be heating barrels of tar, oiling ropes, and loading up their semiautomatic sporting rifles.

But then we’re the bad guys.  Yeah, right.

Two Reasons

Insty linked to this post yesterday:

Retailers and logistics operators are struggling to find space to store the flood of goods that have swamped warehouses and weighed on their balance sheets.

Warehouse owners say more retailers are looking to add storage capacity, both for goods now reaching their networks of stores and distribution centers and as they prepare to keep more inventory on hand long-term to guard against stock-outs.

Well, yes.

What the article does not mention is that “forward buying” (the industry term for this activity) is also a retailer’s hedge against inflation:  buy at today’s price, to sell at tomorrow’s (higher) inflated price, and use the profits to forward buy still more, until inflation comes back down.

We Americans have been sheltered from the latter by our traditionally-low inflation rate. but now we’re going to feel just like consumers in Third World countries, for whom continuously-high inflation is an everyday fact of life.

Yet another reason to hate this fucking Democrat government.

Roll on November 2022, and roll on November 2024 even more quickly.

Grim Enjoyment

We all know that the economy sucks — well, all except the White House and other socialists:

The United States economy contracted in the second quarter of 2022, marking the second consecutive quarter registering no growth. Economists expected the economy to grow by 0.3 percent, but the GDP shrank by 0.9 percent in the second quarter.

It is commonly considered a recession after two straight quarters of negative growth, although the Biden administration is now in the business of challenging the definition.

White House press secretary Karine Jean-Pierre, for example, overtly denied that definition, as did White House economic adviser Brian Deese.

Of course they would.

One just wonders how they’re going to spin the Chip Diller routine when consecutive quarters #3, #4, #5 and #6 all show negative growth.

Useless socialist bastards.

When The Economy Falls Into The Ditch

How Sri Lanka fell into the pit.

Executive Summary:  Debt.

An object lesson for all governments, not the least ours.  The only good thing about this debacle is that the ChiComs are going to take it between the cheeks.

Footnote:  the World Bank gave all sorts of accolades to Sri Lanka for its economic growth, even though the economy was built on foreign loans which the country had no chance of ever repaying.  So much for the banking system…

Further:

Fancy That

Sometimes, the news is just priceless.

Why are people across China refusing to pay housing loans?

A wave of disgruntled homebuyers are refusing to pay mortgages for unfinished or stalled housing projects, as debt-strapped property developers run out of cash. Payments have stopped on at least 100 projects in more than 50 cities, according to researcher China Real Estate Information Corp. Analysts believe that a drop in home values may be another driver for the refusal to meet payments. Until recently, China’s mortgages have been considered among the safest banking assets because of high down payments and collateral value.

So let me see:  you take on debt to purchase a product, and when the product fails to be delivered, you refuse to pay for it.  Only in a world of banker-thought can you be the bad guy.

As to why all this is happening, see here.  (Executive summary:  it was all built on debt.)

And it couldn’t happen to a nicer bunch of Commie assholes.

The Three Things

Back when I was a retail marketing analyst, I used to make formal presentations to my clients about every month or so, each aimed at different audiences within the company — buyers / merchandisers, operations, marketing / advertising and senior management (the last being more of an annual high-altitude presentation, of course).

Because of the volume of data I had on hand it was almost impossible to show all of it, so I would provide summaries, but with all the data on hand in case there were any questions requiring a deep dive into the supporting numbers.

I would then make a summary of the summary, and give each executive an action plan consisting of three, and only three things that had the highest priority with the greatest impact, with the suggestion that they tackle those three items immediately after the meeting.  (Their bosses, of course, got the list of all the departments’ action items so that they could follow up to make sure that they’d been addressed.)

That habit has stayed with me ever since, especially when, as today, I see an enormous problem that needs fixing.  What spurs me on to even greater efforts is when I see that the people who are supposed to be fixing the problem either not doing anything (a massive clue that they don’t know what to do), or are timidly tinkering around the edges of the problem when in fact, the remedies are quite simple, but usually radical.

Here’s what I’m looking at right now.  Read this article first, please, and then come back below the fold.

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