Has the Feds’ Fake Money Now Fouled the Work Ethic?

YOUGHAL, IRELAND – Beautiful weather here in Ireland. The temperature is in the mid-60s. Full sunshine all day.

Everyone comments on how nice it is.

“This is a real summer… finally,” said the man at the hardware store.

“And what’s the forecast?” we asked.

“Oh… four more days of sunshine. And then 11 months of rain.”

When Ireland has good weather, nowhere is prettier. But it doesn’t have good weather often.

“Without the rain… it wouldn’t be so pretty, now would it?” he added.

We are taking advantage of the sunshine. Want to hear what we’re up to on weekends? We didn’t think so. But we’ll tell you anyway.

Calling the Shots

But first, let’s introduce our subject for today: work.

Some people work for wages. Some work for pleasure. Some just work out of habit. And some don’t work at all.

In today’s America… fewer and fewer people are working. The labor force participation rate has been going down for the last 20 years.

And last year, more than 100 million households earned so little money, they owed no income tax. CNBC has the details:

More than 100 million U.S. households, or 61% of all taxpayers, paid no federal income taxes last year, according to a new report.

The pandemic and federal stimulus led to a huge spike in the number of Americans who either owed no federal income tax or received tax credits from the government. According to the Urban-Brookings Tax Policy Center, 107 million households owed no income taxes in 2020, up from 76 million – or 44% of all taxpayers – in 2019.

The share of Americans who pay zero income taxes is expected to stay high, at around 57% this year, according to the Tax Policy Center.

This means that the 2020 election – and America’s politics, generally – were decided by people who are supported by the government, not those who support it.

Yes, it is the leisure class – those who consume wealth, not those who create it – that calls the shots now,

No More Stimmy

But at the end of this week, the feds’ unemployment “toppers” come to an end.

In the spirit of the 2020 COVID-19 panic, Congress saw fit to give unemployed people $600 per week – on top of state unemployment compensation.

This brought many people more money from not working than they had made when they were on the job. Some of them got twice as much.

But that madness is soon to be over. Cnet reports on the fallout:

Over 11 million people will be affected, with around 7.5 million losing benefits entirely. Some two dozen states chose to pull the plug on federal aid during the summer, with governors claiming that the extra unemployment insurance was disincentivizing residents from taking available jobs.

Out-of-work residents in at least 12 states, including most recently in Florida, have taken legal action to try to get that pandemic relief aid reinstated, arguing that they’ve been unable to pay basic expenses, including rent. With unemployment claims still fluctuating as the economy struggles to return to pre-pandemic “normalcy,” reports are showing that the early cancellation of the federal programs had little impact on labor markets.

That is to say, cutting off the “toppers” didn’t send people rushing into gainful employment.

Help Still Wanted

And yet, “Help Wanted” ads are plentiful. There’s no shortage of jobs. The shortage seems to be of people to fill them.

Despite rising wages and perks, people are reluctant to go back to work. What gives?

Investors depend on the feds to keep the stock market high. The economy depends on the feds’ absurdly low interest rates.

Are households now coming to depend on federal bailouts and giveaways, too? Asset prices… interest rates… debt… federal spending… politics… war – all have been corrupted by the feds.

Has the feds’ fake money fouled the work ethic, too?

Americans used to be among the hardest workers on the planet. But now, have they lost their love of labor?

Has the feds’ fake money now fouled the work ethic, too?

Maybe. People seem to have gotten used to not working; many seem to like it.

Irish Renovation

Meanwhile… back in sunny Ireland… we’re taking advantage of the good weather to build an addition onto our guest cottage.

You may recall that when we bought our house here a few years ago, it needed a complete renovation.

And there were some abandoned buildings on the estate that were considered irredeemable. But while the pros took charge of our house, we went to work on the ruins.

Skilled professionals could do the job much better. But like eating tomatoes you grow yourself, you take greater pleasure from a roof you put on with your own hands.

Weekend Project

Neighbors call it “Nan Donovan’s cottage.” Nan Donovan lived here, alone – with neither running water, electricity, nor any heat, save from the fireplace.

There were some clay tiles on the floor in the bedroom. Otherwise, the floors were of beaten dirt.

“We all tried to look after her a bit,” says a neighbor. “And she had a son who checked on her.

“There is almost no traffic on this little road, but Nan would stand by the gate in the late afternoon. She knew when we’d be walking home from school. And she’d want to talk. She was a lonely woman, I guess.”

Nan Donovan died in the early 1980s. Then, the house was abandoned. When we arrived, the roof had fallen in, and it was so covered in vines that it was not recognizable.

But it was a nice weekend project. The walls were sturdy. Built of granite, they just needed to be dressed at the top so that a new roof could be rested on them.

And then, we replaced the windows, dug up the floor, laid down 3 inches of Styrofoam… and poured concrete on top.

We were able to recover some large, flat stones from another job that we used for the floor.

Solar Heating

“Why are you doing all that?” another neighbor asked on Saturday.

We were invited for drinks. We sat on their terrace enjoying the sun, on the banks of the Blackwater River. Before we had a chance to answer, the conversation took a different direction.

“I went to America a few years ago. I like visiting, but the people at the border can be so rude. The guy just kept questioning me… as if he thought I was trying to sneak into the country and steal someone’s job.

“But if you believe the news, the whole country is full of crazy people and murderers. One more Irishman isn’t going to make any difference.”

When the subject returned to our cottage… we replied:

“Well… we have six children and a three-bedroom house. Some of the children have children of their own. We want to be able to accommodate them when they come to visit.”

“Yes, but those old cottages are so dark and damp.”

“That’s why I’m putting on a conservatory.”

The old houses – with their thick walls and small windows – are a bit gloomy. They probably weren’t so bad when lived in by big families, who kept a fire going in the hearth. But today, they may be a little too “rustic” for daughters-in-law or girlfriends.

And left closed up for long periods, they are bound to be damp and musty when they are finally put to use.

We hope to solve the problem by building a conservatory on the south end of the house.

First, we put up a low, stone wall. Then, we framed the conservatory with treated pine. Nothing fancy. Double-pane insulated glass will be placed between the studs and rafters, with a barn-rail door for access to the outside.

When the sun shines, the glass house should lighten up… and dry out… the whole house.

We’ll let you know how it turns out.

Stay tuned.

Regards,

Bill

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