April 9, 2020 at 1:50 pm #27516
Another excellent article from CHS.
The financial fragilities and vulnerabilities that are now becoming apparent are not limited to hyperspecialization and globalized monoculture economies. The cost structure of most small enterprises was burdensome even in the best of times: rent, utilities, fees, taxes, regulatory compliance, insurance, labor overhead and so on are now crushingly costly, and once revenues decline by even modest amounts, the small businesses are no longer viable.
Costs such as rent, healthcare insurance, local fees and taxes are notoriously “sticky,” meaning the default setting is to ratchet ever higher. These costs don’t drop unless there is a full-blown crisis such as mass bankruptcies of commercial landlords and cities.
Thus we can anticipate a culling of all the marginal, struggling small businesses in the pandemic recession, and a weak or non-existent emergence of new businesses in the future to replace those lost, as revenues will remain weak while costs will only increase.
Few observers are pondering the psychological changes that the pandemic have unleashed. To take an obvious example, consumers will no longer be able to maintain confidence in their incomes or the market value of their labor and assets. This uncertainty will naturally encourage savings rather than frivolous spending and debt, and this change will depress consumption.
April 9, 2020 at 3:01 pm #27523
Only thing it does not account for is angry mob of people once their food and benifts don’t help and police don’t go to calls …. well you figure it out… once shooting start all bets are off about even a USA being left after smoke clears.
April 17, 2020 at 12:11 am #27838
angry mob of people once their food and benifts don’t help and police don’t go to calls
Guess that’s the scariest part of this all for me. When you have to keep calm to save your family members, and everyone start panicking and acting like wild animals. Hard to stay rational these days.
April 17, 2020 at 7:41 am #27867
I think that is why most preppers are more calm then others.
We sit around and think or plan for this kind of event.
In the past we have mentioned about the second and third order effects of some kind of crisis, but it is different to be actually seeing it unfold before us.
April 17, 2020 at 7:01 am #27848
That’s exactly why a basic tenet of prepping is weapons and ammo, weapon skills, and self defense. Some would add military skills and small unit tactics. Oh, and don’t forget medical skills and supplies, hopefully beyond first aid. Food, in all aspects. And books that you have actually read on all this. And if it gets really bad, plans and equipment to get by during a powder outage and failure of the water and sewer system. If I don’t stop now I’ll cover everything lol
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