Thursday, September 8, 2011

Our Twisted Sister Economy (Musical Tribute)

September 8, 2011
Ribs and Burgers going out of business Friday in St. B

“I’ve always enjoyed my customers, but some things have been happening over the past 2 to 3 years that just led to closing it. I’m actually happy about it. I’ve been kinda’ sick ... and I can’t take it no more,” Corbin said.

“We’ve got a buyer for it, but the restaurant will be gone. They’ll be tearing the building down,” he said.


Perhaps a presidential pep talk will inspire him to change his mind?



Who are you?
Where do you come from?
Are you listening to me?
What do you want to do with your life?

8 comments:

Audrey said...

Thank you for this wonderful response to the pep talk this evening. Very nice.

Troy said...

"“It’s gotten to where it’s hard to make a living with minimum wages going up"

ouch. TN min wage is Fed min wage, which has risen from $5.15 to $7.25, 2007-now.

You'd think a higher minimum wage would allow more people to afford to eat out, but that's not how it works of course.

The landlord generally gets first crack at the pay packet, unless the vacancy rate is high enough to stay their hand.

It's a pretty small place, a staff of 3 would cover it, 700 staff hours x the $2.23/hr pay raise would be $1400/mo in added wages. Profit of $1 per ticket that's over 40 more sales he needs a day to cover the wage hike.

Damn that's a tough business.

Troy said...

Key thing I learned in Japan (teaching English) is that labor-intensive business SUCKS.

To many real-world costs to pay to get biz. That's the beauty of software, the marginal customer cost $0 -- well, 30% if you sell through an app store but in big-O notation I think that's $0.

Stagflationary Mark said...

Audrey,

I do try to share any justified optimism when I can. Granted, I'm still waiting for some to appear. ;)

Stagflationary Mark said...

Troy,

Thanks for quoting that part about the minimum wages.

Behold the power of unintended consequences.

tj and the bear said...

The production costs for housing were infinitely higher than the production costs for TIPS in 2007.

You missed my point. I don't want you to compare costs, I want you to compare the change in margins (retail vs. cost). The production cost of toilet paper hasn't risen significantly therefore the price has not either.

Stagflationary Mark said...

tj and the bear,

Roughly 165,000 metric tons of gold have been mined over this planet's history.

If production costs became infinite (production simply ceased) would we expect each ounce to be worth an infinite amount?

Or would demand eventually suffer as the price rose to unaffordable levels?

I can't speak for others, but $1900 per ounce is well outside my comfort zone for affordability.

I do not wear jewelry but if I did I would look to alternatives.

September 2, 2011
Gold wedding bands get dumped for tungsten

As the economic downturn forces Americans to tighten their belts, consumers shopping for jewelry have become more willing to consider cheaper alternatives, Baird said.

Stagflationary Mark said...

August 18, 2011
U.S. Gold Jewelry Demand Down 8%; Global Jewelry Demand Up 6%; India Accounts for 32% of Demand

The report went on to note that gold jewelry was facing “stiff competition” from silver, and specifically cited jewelry maker, Pandora, which specializes in silver charms. However, this company has lost some of its luster in recent weeks.

I bought my girlfriend a silver necklace as a birthday gift (if memory serves) about the time we first met 10 years ago. I asked her what she wanted and she said that she preferred silver.

I bought it in a silver specialty store. It was pretty much the most expensive item. It had a red gemstone (garnet?) and looked more expensive than it really was. It cost about $50. I actually felt kind of guilty but she loved it. (Cheap date! ;))

Someone stole it from her a few years ago. She had to take it off for a doctor's appointment (and it was nowhere to be found afterwards). Its sentimental value had risen well above its production cost. Too bad for both my girlfriend and the thief. Sigh.