A Gen-Zer is Upset

The young woman is tired of her generation being called lazy because they—she in particular—are working 40-hour weeks, “barely getting by,” and don’t want to do that for the rest of their lives. They have other things they want to do. She then insisted that today’s economy is not the one in which prior generations started out, and Gen-Zers starting out have it hard today compared to earlier generations when we were starting out.

She has a beef in some respects.

However.

Here is what was available to this Boomer when I was just starting out.

The house I grew up in was all of 1232 square feet, compared with today’s median size of 2500 square feet. That house didn’t have central air conditioning. We were some years into it before we got a window air conditioner for our living room. Such basics as a thermostat for the furnace was a manually set mercury-based affair, not today’s programmable with its variety of part-of-day or -night or vacation settings.

We didn’t spend $250 and more per month on cable TV—it didn’t exist.

We didn’t spend $50-$100 per month on an Internet connection—there was no Internet.

We didn’t spend $80-$120 per month on cell phone service—it didn’t exist.

We didn’t drop $800 on a new cell phone—they not only didn’t exist, the phone company gave us our landline instrument as part of their POTS service. (Don’t know what that is? Welcome to my starting out world. Go look it up, if it doesn’t interfere too badly with modern priorities.)

We didn’t hire Uber or Lyft or Door-Dash or anything of that ilk—that ilk didn’t exist. We drove ourselves, or went shanks mare. And doggy to go bags were our takeout.

We didn’t have much in the way of shipping costs, other than moving our household, or the occasional order from a Sears or Montgomery Ward catalog—there was no such thing as eTail.

We couldn’t even order our books online. We used the local library, or we drove (or did that shanks mare thing) down to the local bookstores. Of course, the library or the bookstore could special order a book we wanted. By sending a letter or making a POTS call. And we could go pick up the book at the library or bookstore when it arrived.

We spent nothing on programs for our personal computers or laptops or aps for our cell phones—that kind of software programming didn’t exist, and neither did the personal computers or laptops, or cell phones to run them on. Spreadsheets? Those were paper-printed grids on which we used pencil or pen. Word processors? Manual typewriters, or pencil/pen and paper. We did have actual (hand-cranked) adding machines, though, so it wasn’t all pencil and paper.

If we wanted to talk to our neighbors, we visited them or they us. If the ones we wanted to talk with lived far away, we wrote postcards and letters. International mail was something else, with its folding envelopes on which we wrote our letters, and then folded them to become the international mail envelope to save the weight of an additional sheet of paper. Or we called long distance (haven’t heard of that? Welcome to another aspect of the modern world, which isn’t what I started out with) on our landline POTS service. International calls were both especially expensive and faint of voice on both ends. There was no concept of electronic social media.

The list goes on and on.

If Gen-Zers want to start out with costs similar to those earlier starting-out generations, they need to learn to live without all of today’s technology.

Further, regarding today:

When I finally walked out the door in retirement from my skilled professional job, I still was working 50-60 hour weeks. That schedule wasn’t universal, but it was quite common throughout those earlier start-outers’ careers. We had families to support and kids’ college to plan for. Family mattered, not personal wants. Indeed, family was central to our personal wants, and gladly so. We weren’t centered exclusively, or even primarily, on our selves.

The mom-and-pop HVAC folks who deal with my current house’s heating and air conditioning (central, mind you, today) not only work those 60-hour weeks, they work holidays, too, including Christmas. It’s the same for the plumbers, electricians, carpenters, road builders, all the trades.

One last fillip. This particular Boomer did have a somewhat easier time handling my starting out costs. I’d enlisted in the USAF, getting commissioned through my college’s ROTC. With that military career as my first, I was given structure, a place to live, and a grocery store that was a bit cheaper than the local economy grocery stores. The young woman, and others of her cohort, might think about enlisting in one or another branch of our military, whether as enlisted or as an officer. They’d be helping out their nation’s security, and they’d learn what work truly is and how rewarding it can be.

India vs PRC

The Wall Street Journal has an interesting piece comparing the People’s Republic of China’s economic future with India’s. In the second paragraph (the semi-lede?), there’s this:

The country’s population surpassed China’s last year. More than half of Indians are under 25.

A couple of graphs from the CIA World Factbook put the two nation’s population structures in sharp relief, and at this stage of the two nations’ economic development, those structures are their future.

This is the structure of India’s population (scroll down a skosh):

This is the structure of the PRC’s population (again, scroll a tad):

India’s population of new workers is growing, so the nation’s economic capacity is capable of growing. The PRC’s population of new workers is shrinking. Not only is the PRC incapable of growing very much, economically, it’s becoming and will continue to become increasingly difficult to support its old folks, even as that portion of the nation’s population continues to grow.

Bank Capital Requirements

The Federal Reserve is looking hard at increasing the amount of capital that banks must hold in the Fed’s effort to boost bank liquidity, or their ability to handle sharply increased withdrawal rates.

There is pushback against this proposal, including objections that it might make it harder for banks to lend to folks on the lower economic tiers, even that it might make American banks less competitive than foreign competitors. That last often (not always) is just political Newspeak for “be more like Europe.”

However, the problem can be preempted—or at least pushed a considerable way down the road, allowing for more thought—by doing something different that IMNSHO is a better move, anyway.

Rather than increasing capital requirements, require all banks to mark to market (semiannually? quarterly?) all of the debt instruments the banks hold in satisfaction of existing capital requirements.

Then leave that requirement in place for some period of time (5 years, say) in order to get a serious look at how well, or poorly, that requirement supports bank liquidity during economic downturns.

You’ve Formed Your Opinion on EVs. Now Let Me Change It.

That’s the headline on Dan Neil’s Wall Street Journal paeon to the battery-powered car. In his piece, he acknowledges the past and current shortcomings of Electric Vehicles, but he lays those off to car company marketing rather than to actual performance.

My mind isn’t as made up as Neil’s headline implies; nevertheless, challenge accepted.

I drove a Ford Fusion Hybrid for a number of years, and it was a fine car. However, the battery price premium was enormous, and the reduction in trunk capacity to make room for the battery was just as enormous.

I replaced it with an ICE Fusion, and that car was just as peppy and responsive as the Hybrid (peppiness and responsiveness was one of Neil’s touts regarding battery-powered cars), and I had decent trunk capacity.

I’d get a Hybrid again, were the battery premium actually to come down decently.

I won’t buy a purely battery-powered car until a number of criteria are met:

  • the battery has to be chargeable to a 400-mile range in the same minimal time that I can fill my ICE gasoline tank to a 400-mile range
  • the battery premium must come down. The 14% reduction Neil claims is from a hugely high price
  • the battery’s lifetime must be at least as many years as I drive my cars, and as many miles
  • the battery must stop suffering so significantly from cold temperatures. The battery in my ICE that powers my car’s starter motor also suffers, but it only needs to crank the engine. If needs be, I can get a jump start. The EV’s battery is its motive source, and that motor can’t be jump-started; its power source must be “refueled”
  • the battery must be disposable/recyclable with far less environmental damage done or risk of damage done than is the case today

EV prices are coming down, as Neil claims? Show that after EV subsidies are stopped, and EV buyers pay actual market prices. No one should have to pay tax money because someone else bought an EV.

AMLO’s Extortion Attempt

Mexican President Andrés Manuel Lopez Obrador has made his demands clear concerning what he wants in return for helping the Biden administration do its job—which it doesn’t need help doing—regarding our border with Mexico. AMLO’s demands are naked extortion.

  • give $20 billion to Latin American and Caribbean countries
  • grant work visas to 10 million Hispanics who have worked in the US for at least 10 years
  • end sanctions against Venezuela and halt the blockade of Cuba

No. Just close the border altogether. Let no illegal aliens in; forcing their remaining in Mexico. Also bar Mexican visitors and Mexican products.

This won’t happen, though, with Timid Joe Biden. And it’s shameful that the United States should be victimized by the extortion of a Third World nation run by drug cartels.