2023 has seen a wave of labor strikes, from Hollywood, to the airlines, to autoworkers. The working class can’t go on when wages don’t keep up with inflation. What’s really happening is a longer trend speeding up- a trend that started when the U.S. Dollar was removed from the gold standard in 1971.
Below are a collection of articles addressing the economic reality. We can’t restore the global economy until we return to sound money. This could be gold, silver, bitcoin, or all 3. In the meantime, it helps to work for assets rather than just fiat money. Investing in assets that maintain or grow their value is how the rich get rich.
ZeroHedge- 2-Out-Of-3 Gen Z-ers Still Get Financial Help From Their Parents:
“A recent poll surveying 1,000 U.S. residents reveals that a sizable number haven’t ventured as far from home as they once imagined they would. Close to one-third remain in the town where they grew up, and astonishingly, 40% of that group still share a roof with their parents.
“And the reason many haven’t left home seems to be clear: nearly 2 in 3 Gen Zers receive financial help from their parents. 29% of Americans still live in their home town, according to a newly released study and data aggregated by AllStar Home.
“The median distance that U.S. residents reside from their birthplace is a mere 30 miles. Those who haven’t crossed state lines are, on average, just a 47-minute drive away from their original stomping grounds, the study found.”
CBS News- Homes “unaffordable” in 99% of nation for average American:
“The typical American cannot afford to buy a home in a growing number of communities across the nation, according to common lending standards.
“That’s the main takeaway from a new report from real estate data provider ATTOM. Researchers examined the median home prices last year for roughly 575 U.S. counties and found that home prices in 99% of those areas are beyond the reach of the average income earner, who makes $71,214 a year, according to ATTOM.
“Housing experts point to couple trends driving up housing costs. Mortgage rates have topped 7%, adding hundreds of dollars per month to a potential house payment. At the same time, homeowners who locked in at lower mortgage rates during the pandemic have opted not to sell out of fear of having to buy another property at today’s elevated rates, depleting the supply of homes for sale.”
“ATTOM’s data adds to a growing body of real estate research in recent years that highlights the lack of affordable housing . It’s an especially tall task for younger millennial shoppers, one expert said.
“”First-time home buyers, who are often the most sensitive to interest rates, have had to postpone their home-buying dreams,” said Dan Hnatkovskyy, co-founder of new home construction startup NewHomesMate, told CBS MoneyWatch. “Those older buyers with more cash on hand can buy down interest rates, or they can absorb a higher monthly payment and are still buying homes across the country.””
Gateway Pundit- California Gov. Newsom Raises Minimum Wage for Fast Food Workers to $20 Per Hour:
“California Governor Gavin Newsom has signed a law raising the minimum wage for fast food workers to $20 per hour.
“The law will go into effect in April, giving fast food workers in the state one of the highest minimum wages in the entire nation.”
“According to a report from The Hill, “Prior to this bill, fast food workers were making an average hourly mean wage of $16.60, equaling around $34,530, according to data by the U.S. Census Bureau of Labor Statistics. This is lower than the California poverty line, which is around $36,900 for a family of four, according to a study from the Public Policy Institute of California and Stanford Center on Poverty and Inequality.””
Bounding Into Comics- Financial Analyst Claims New WGA Deal Will Put Writers Out Of Work As Studios Cut Film And TV Productions:
“Financial analyst and YouTuber Valliant Renegade reacted to the recent deal the Writers Guild of America (WGA) signed claiming it will end up putting a number of writers out of work.
“The Writers Guild of America West announced they had cut a deal with the studios earlier this week writing on X, “The WGA reached a tentative agreement with the AMPTP. Today, our Negotiating Committee, WGAW Board, and WGAE Council all voted unanimously to recommend the agreement. The strike ends at 12:01 am.”
“The organization also shared a link to Memorandum of Agreement between the union and the studios.”
“Reacting to the deal, financial analyst Valliant Renegade shared on YouTube, “The union bosses of the WGA have declared victory against Hollywood studios; meanwhile, a lot of the rank and file writers, the union members themselves are probably going to be out of work and perhaps even looking for new careers.””
“He went on to explain why, “So, pretty much as we predicted or as any economics textbook could have predicted of this, if there was going to be an artificial increase in labor costs then there was going to be a necessary offset by way of production costs.”
“From there Valliant Renegade cited an article by Deadline’s Nellie Andreeva who notes the studios won’t be making as many TV shows and thus there won’t be as many jobs for the writers.
“Andreeva states, “Accelerated contraction, more competition, reeled-in budgets, fewer overall deals and possibly more cancellations are some of the things industry sources are preparing for.””
“To that point, Andreeva quoted an anonymous executive who informed her, “No one is buying. This is the worst marketplace that I have ever experienced.””
Deadline- SAG-AFTRA Members Vote Overwhelmingly To Authorize Strike Against Video Game Industry:
“SAG-AFTRA members have voted overwhelmingly to authorize a strike against 10 of the major video game companies. The vote was 98.32% in favor. A total of 34,687 members cast ballots, representing a voting 27.47% of eligible voters. The guild’s last strike against the gaming companies, in 2016-17, lasted 183 days. The guild, meanwhile, has been on strike against the film and TV industry since July 14.
““It’s time for the video game companies to stop playing games and get serious about reaching an agreement on this contract,” said SAG-AFTRA President Fran Drescher. “The result of this vote shows our membership understands the existential nature of these negotiations, and that the time is now for these companies — which are making billions of dollars and paying their CEOs lavishly — to give our performers an agreement that keeps performing in video games as a viable career.”
“The guild’s board and negotiating committee had already voted unanimously to recommend the authorization vote, which required 75% approval of voting members to pass. Today’s vote, however, doesn’t necessarily mean that there will be a strike, but rather, gives the national board to authority to call a strike if negotiations fail to produce an acceptable agreement.”
Reuters- UPS Teamsters ratify contract, eliminating US strike risk:
“Aug 22 (Reuters) – U.S. workers at United Parcel Service (UPS.N) have ratified a new five-year contract, the Teamsters union said on Tuesday, closing the door on a potential strike that could have put timely Christmas deliveries in doubt and sent shipping costs soaring.
“The deal raises pay and eliminates a two-tier wage system for drivers at Atlanta-based UPS, the world’s largest package delivery company, which handles about a quarter of U.S. parcel deliveries and serves virtually every city and town in the nation. It also provides another paid holiday, ends forced overtime and adds air conditioning to new models of the company’s ubiquitous brown trucks starting next year.”
“General wage increases for part-time workers double the amount obtained in the previous UPS Teamsters contract – and existing part-time workers receive a 48% average total wage bump, addressing a key sticking point in talks, the union said.”
Yahoo!- UPS Layoffs Hit Dallas Staff Amid Teamsters Deal, Slow Demand:
“UPS is laying off employees in the Dallas-Fort Worth area as part of a regional restructuring plan.
“The job cuts come as America’s biggest parcel carrier recently finalized a massive new contract covering 340,000 employees represented by the Teamsters. The deal will boost wages and benefits for unionized workers by an average 3.3 percent annual rate over the next five years. The new contract will cost UPS roughly $500 million more this year than it originally planned.”
“A person familiar with the matter told Sourcing Journal that 50 percent of all Dallas-Fort Worth-area managers have been been asked either to accept a severance package or take a demotion to the role of full-time supervisor. One-quarter of all full-time supervisors have been presented with the separation plan. Employees have until the end of September to find another job, the person said.
“UPS did not reveal how many employees are affected by the layoffs.”
TheStreet- American and Southwest Airlines face a major strike risk:
“If a single airline’s workers strike, it will throw the entire U.S. travel network into disarray.
“Even one airline shutting down would cause prices to spike for available seats on other carriers and on trains, as well as the cost of rental cars. If multiple airlines strike at the same time, it would cripple the travel industry across the country.
“Multiple strikes once seemed impossible but now seem possible. Four major airlines — American, United (UAL) – Get Free Report, Alaska, and Southwest — have been unable to reach labor deals with their flight attendants.
“Southwest Airlines (LUV) – Get Free Report has labor problems not only with its flight attendants; it also has yet to reach a deal with its pilots, who have voted overwhelmingly to strike.
TheStreet- Tesla Chief Elon Musk has a warning for Detroit 3 amid ongoing auto strikes:
“Resident Joe Biden added an additional layer of precedent to the already historic strikes that the United Auto Workers union undertook against the Detroit three automakers — General Motors (GM) – Get Free Report, Ford (F) – Get Free Report and Stellantis (STLA) – Get Free Report — in walking the picket lines alongside striking workers Sept. 26.
“The union began a series of rolling strikes against all three automakers Sept 15. These strikes were expanded Sept. 22 to impact all parts distribution facilities for GM and Stellantis. Ford, owing to the company’s willingness to work at the negotiating table, was skipped over in the expansion.
“The union is seeking 40% wage increases in addition to a 32-hour work week, cost of living adjustments and an expansion of benefits. Automakers have offered 20% increases over a four-year period, but have largely remained inflexible on the other demands.
“”While the Detroit stalwarts battle with the UAW, there’s a bottle of champagne that’s being iced at Tesla headquarters,” Wedbush’s Dan Ives said earlier in September.
“Elon Musk, Tesla’s chief executive, seems to agree.
“”They want a 40% pay raise *and* a 32-hour workweek,” Musk wrote in a post on X, the social media platform he purchased last year. “Sure way to drive GM, Ford and Chrysler bankrupt in the fast lane.””
RealClear Wire- UAW’s Real Enemy Is Forced EV Conversion:
“Speaking at a convention in April, United Auto Workers President Shawn Fain identified what he considered the union’s “one and only true enemy – multibillion-dollar corporations and employers that refuse to give our members their fair share.” He may be attacking the wrong enemy.”
“The UAW is now engaged in a strike of historic proportions against America’s big three auto manufacturers: GM, Ford, and Stellantis (owner of Chrysler). But it’s the Democratic Party’s climate activists who pose the most significant threat to American auto workers today – the forced transformation of the U.S. auto industry from gas to electric-powered vehicles (EVs).
“As for the strike, the UAW’s demands include a stunning 40% pay raise over the next four years. According to CEO Jim Farley, that increase would put Ford “out of business.” Yet, in a response that hardly seems miserly, Ford has offered a 20% increase over the life of the contract and an immediate 10% increase.
“For a starting point in negotiations, it’s strong evidence of good faith, if not generous. GM and Stellantis will likely make offers in that range. But the final number won’t mean much to the union workers whose jobs disappear.
“Turns out that it takes 40% fewer employees to manufacture EVs than it does to manufacture gas-powered vehicles. According to a recent analysis by James Sherk and Jacob Sagert at the America First Policy Institute, the Biden administration’s proposed EV rules will eliminate at least 117,000 existing auto manufacturing jobs.”
“Part of the problem is that the Democrats’ climate bill (ironically named the Inflation Reduction Act) promotes the use of “domestic” labor rather than “union labor.” That was the result of lobbying by foreign auto manufacturers, many of which have or intend to build plants in right-to-work states. It’s also evidence that the climate-activist wing of the Democratic Party is more concerned with promoting EVs than with preserving jobs for their traditional union allies.
“In fact, to accomplish its EV goals, the Biden administration is attempting to force them on consumers who just don’t want them. According to the Deloitte 2023 Global Automotive Study, 62% of Americans prefer their next car purchase to be a gas-powered vehicle, 20% prefer a hybrid, and a mere 8% prefer a pure EV.”
“Donald Trump sees an opening. Already popular with union workers, though perhaps not their leaders, Trump recently pointed out the obvious – EVs are “a disaster for both the United Auto Workers and the American Consumer” that would “wipe out” the UAW. He’s skipping next week’s Republican presidential debate and visiting Detroit to speak with striking auto workers. The reception he gets may be telling.”
Breitbart- Trump To Michigan Auto Workers: ‘You Built this Country’:
“Donald Trump sang the praises of American autoworkers in a speech in the battleground state of Michigan Wednesday night, creating a stark contrast between the former president and rivals for the Republican nomination who were debating in California.
““I want to begin this evening by saluting these truly great Americans who do not get the credit they deserve,” Trump said.
“The tone of Trump’s discussion of autoworkers was very different from what listeners heard from the Republicans at the official GOP debate in the Reagan Library in California.
“At the opening of the GOP debate, Senator Tim Scott (R-SC) was asked about the strike by the United Auto Workers union seeking better wages and working conditions for its members. He recently praised Ronald Reagan for his decision to fire air traffic controllers in 1981, drawing a parallel with the current UAW strike. One of the debate moderators asked in Scott would fire the striking autoworkers.
“Obviously the president of the United States cannot fire anyone in the private sector,” Scott said.
“Rather than leave it at that, Scott took the opportunity to criticize the strikers.
““One of the challenges we have in the current negotiations is that they want four-day, French work weeks but more money. They want more benefits working fewer hours. That is simply not going to stand,” Scott said.”
MishTalk.com- Elon Musk Taunts the UAW, “Tesla Pays Workers More and We Have Fun”:
“September 16, 2023- With perfect timing, Musk made a couple of taunts at striking UAW workers. His goal is obvious.”
“The chart does not tell the full story. UAW workers get far more benefits and huge bonuses that are not factored into hourly earnings.
“UAW workers also get annual bonuses that are not factored in.
“The motor vehicle decline from $28.35 per hour to $20.65 per hour stems from UAW renegotiations after GM and Chrysler went bankrupt.
“To survive at all, the UAW granted concessions and put in a tiered wage structure where new employees were paid less. Factor in retirements and hourly wages fell.”
“Tesla does not pay more in hourly wages, but via stock options, Musk has made millionaires out of many workers.
“Stock options are not a company expense. Stock options come out out of shareholders pockets.”
BitcoinMagazine.com- ELON MUSK CALLS FIAT CURRENCY A SCAM:
“In a characteristically bold and provocative post, Tesla and SpaceX CEO Elon Musk has once again stirred the financial world by declaring, “Fiat currency” a scam. Musk, responding to a post asking other X users what they think is a scam so normalized that people don’t even realize it is a scam, did not provide further context in the post.
“Fiat currency refers to traditional government-issued money, such as the US dollar, euro, or yen, that is not backed by a physical commodity like gold but relies on the trust and authority of the issuing government. Musk’s comment adds fuel to the ongoing debate about the role of cryptocurrencies like Bitcoin in challenging traditional financial systems.
“Bitcoin enthusiasts and advocates quickly rallied behind Musk’s tweet, interpreting it as an endorsement for the digital currency. They argue that Bitcoin offer an alternative to fiat currency, with advantages of being decentralized and resistant to inflation.”
BitcoinMagazine.com- US GOVERNMENT FRAMES BITCOIN PRIVACY AS “CRIMINAL”:
“In another unfortunate turn of events for anyone hoping their right to privacy to be protected as guaranteed by the US Constitution, the UN Declaration of Human Rights, or applicable state and federal law, the US government has argued that the disclosure of proprietary Chainalysis heuristics information in the case US vs. Sterlingov would “jeopardize numerous law enforcement investigations and impact the effectiveness of law enforcement tracing tools” by enabling the development of “criminal countermeasures to blockchain analysis.””
“The oath each and every US government employee pledges when first taking office reads: “I do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion, and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God.”
“Apparently, this oath is only applicable so long it serves the US government’s agenda. While attempting to retain a protective order to seal the disclosure of Chainalysis heuristic information, the US government has, in essence, argued that the right to privacy does not exist when transacting on the blockchain. In the newly released court documents, the US government defines software developed to protect individual financial privacy on the blockchain, such as coinjoins, as “adversarial”, contending that the disclosure of Chainalysis training methods and techniques bears the reasonable expectation to enable “circumvention of the law.””
Washington Examiner- House Republicans advance legislation to block central bank digital currency:
“House Republicans have advanced a bill that would stop the Federal Reserve from issuing digital currency, sending the legislation to the House for a vote.
“The House Financial Services Committee voted Wednesday to advance the legislation, which was sponsored by Rep. Tom Emmer (R-MN). The bill is dubbed the Central Bank Digital Currency Anti-Surveillance State Act. It won support from Republicans and drew opposition from some Democrats on the committee.”
“The legislation would block the Fed from issuing a CBDC directly to individuals, “ensuring the Fed cannot mobilize itself into a retail bank able to collect personal financial data on Americans,” according to the plan. It also blocks the Fed from indirectly issuing a CBDC to individuals through an intermediary.”
““The CBDC Anti-Surveillance State Act underscores that fact and protects Americans’ privacy and our financial system from the risks a CBDC would pose,” said committee Chairman Patrick McHenry (R-NC). “It builds on the principles that Republicans developed last Congress to guide our evaluation of a potential CBDC.”
““Unfortunately, this bill, which I will call the CBDC anti-innovation act … would commonly shut down important work the Fed is doing to research a potential U.S. CBDC,” said the committee’s Ranking Member Maxine Waters (D-CA). “Instead of taking steps to ensure the United States wins the digital currency space race against emerging powers like China, Republicans are making baseless attacks against the CBDC that does not even exist.”
“Rep. Brad Sherman (D-CA) took umbrage with the notion that many of the Republicans supporting the legislation are also supportive of the cryptocurrency space, which many on the Left feel needs more government regulation and oversight.”
