Tag: economy

Photo by Joe Wilcox
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A Rose by Any Other Name is Gone

Following “The Tree Tragedy” that destroyed the provider of shade (for us) and food and refuge (for birds and squirrels), I was ready to give notice and move out of our apartment. One problem: In December 2020, Governor Gavin Newsom essentially closed down the state for the entire month in response to a reported surge in SARS-CoV-2 (severe acute respiratory syndrome Coronavirus 2)/COVID-19 cases (e.g., positive tests for infection).

But Spring (e.g., Early Summer in San Diego parlance) brought more birds than any other year—many flocking to a hedge nearby our assigned parking space. Across the street, they, and other animals, used the mighty date palm as a majestic habitat. But South American Palm Weevils infested the tree, which the city destroyed in late July. The bugs are not indigenous and removal of infected palms seeks to slow their spread.

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Photo by Joe Wilcox
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Where are the Oscar Mayer Cold Cuts and Nathan’s Franks?

Someone might blame the so-called supply chain crisis for this unnamed (I won’t say) supermarket’s empty packaged, prepared, processed meat section. I’d like to think that to celebrate the World Series and return to big gatherings before the big screen following more than 18 months of SARS-CoV-2 (severe acute respiratory syndrome Coronavirus 2)/COVID-19 lockdowns that a whopper shopper cleared out the Bologna, hotdogs, and other deli delights for the big game.

The temperature gauge is in the red, which could indicate cooling malfunction—that despite stocked goods on either side of the empty section. As I walked by, a store employee wheeled a cart stacked with boxes of deli-fresh replacements. You’re welcome to blame the supply chain, and who doesn’t these days? I won’t.

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Photo by Joe Wilcox
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Park Your Butt, Not Your Car

Southern California continues to suffer from the self-inflicted economic devastation imposed by our esteemed governor, Gavin “Gruesome” Newsom. He has imposed a partial, second statewide shutdown in response to increasing confirmed SARS-CoV-2 (severe acute respiratory syndrome Coronavirus 2)—also known as COVID-19—cases. Pandemic deaths aren’t rapidly rising, which, in my journaled opinion, is the metric more important to making policy that harms millions of businesses and leads to massive job losses.

What is the harm? Locally, according to San Diego Regional Economic Development Corporation: “Forty-one percent of businesses surveyed saw revenues decline by 81 to 100 percent; 93 percent saw staffing declines of one to 50 employees”. Additionally, “minority-owned small businesses have been disproportionately impacted by COVID”. Explicitly: “More than 90 percent of minority-owned businesses have seen their revenue decline, with most experiencing steep revenue declines of 81 to 100 percent”. EDC released the most recent data—collected May 28 to June 8, when the state started reopening—on July 1, or 13 days before Newsom reimposed new closure measures.

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Society by Joe Wilcox
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A Florist Uproots

Last night, on the NextDoor social network, I read a post about the University Heights florist moving and asking if anyone knew where. This morning, I stopped into the shop, Florabella, and asked. The 29 year-old establishment will for a time share warehouse space with a large floral distributor off of Morena Blvd. The current location is convenient and charming—inviting for walk-in sales. The temporary space is along a congested, commuting corridor.

The end of Florabella’s 24 year presence in my San Diego neighborhood is a common local retail story. At the end of May, the landlord informed the commercial tenant that the rent would triple, effective July 1st. For that month, though, the increase would be reduced to $1,000. I have heard the three-times figure often over the past 12-18 months. With a difference: The other shops closed up. The florist saunters on. 

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Responsibility by Joe Wilcox
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Perpetual Prosperity Psychology and the Housing Bubble

Something about the housing bubble narrative bugs me: Conspiracy. Evil bankers conspired to bilk Americans by financing home loans to people who could never pay, to then repackage bad mortgages as good investment products. While I lauded Matt Taibbi news analyses in 2010 and 2013 for exposing financial institution malfeasance, the blame game always seemed to ignore one other party’s culpability: Borrowers.

New research paper “Changes in Buyer Composition and the Expansion of Credit During the Boom” is a fascinating post-bubble autopsy. Its conclusions, if they survive the test, rewrite the bubble narrative, which revision makes more sense to me. 

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Society by Joe Wilcox
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Why the Dow is So High But Consumers are So Low

Yesterday, I warned that signs of economic recovery are nothing more than a mirage. Today, I’m freaking out because Robert Reich has got an explanation so simple and so obvious. If the former US Labor Secretary’s analysis is correct, as I believe it is, the economy’s in deeper doo doo than even my worst warnings about it.

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Living by Joe Wilcox
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Housing Bubble Myths Pop

For more than a year I’ve warned that the housing market would retreat with wicked vengeance, with reverberations moving through the US economy as it did earlier in other countries. Today’s Fortune story “Getting real about the real estate bubble” rips apart some of the myths sustaining the bubble.

Shawn Tully whacks the hell out of four bubble myths: “As long as job growth is strong, prices can’t go down”; “the builders learned their lesson in the last downturn. They won’t swamp the market with new houses when the market turns”; “low interest rates will keep values rising, or at the very least, put a floor under prices”; “restriction on development in the suburbs ensure low supply, and guarantee rising prices”. 

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