Showing posts with label cost of living. Show all posts
Showing posts with label cost of living. Show all posts

Wednesday, May 6, 2015

The Pros and Cons of Phoenix... if you believe in stereotypes



I posted the following response to a YouTube video someone had put up about the "Pros and Cons of Phoenix."  I found it somewhat misleading and typical of the stereotypes you hear from people who really haven't spent much time here.  That the video was a glorified PowerPoint presentation with a voiceover didn't add to its credibility.

I'm the last person to defend the place and truth be told if finances allowed I'd rip up stakes in a heartbeat.  This state has been no friend to me but when I hear deliberate misinformation it annoys me to no end.  I've provided the video in question and my response to it.  If you really want to know what it's like to live in Phoenix, read the post that follows it.



My response:

"As someone who's lived in the Phoenix area since I was dragged here as a kid in 1971 I can say with authority that this video is somewhat lacking in content.

Let's start with all those great jobs she was talking about...I suppose if low wage jobs are your thing then jobs around Phoenix would seem plentiful.  I can tell you that for anything above flipping burgers the wages are absolute crap and so are the corporations that came here for just that reason.  Where do you think Michigan got it's ideas for union busting anyway?   

Cost of living may be lower than other places but so are the wages so it's not like everyone here can afford to just jump in the car and head to their luxurious cabin in Pinetop then take a jaunt over to the Canyon for some lunch.   The state's biggest employer is Wal-Mart so that should tell you something.  We used to have big companies here but most of them pulled out or scaled down in the 80's.  This state is only high tech if you think Best Buy is an indicator. 


 The majority of jobs are either retail or healthcare to take care of all those "snow birds."  Those wages are depressed compared to other places as well.  Want to be a teacher?  Try 35K a year to start and maybe you'll get to 45K if you stay for 10 years.   35K a year doesn't buy much of a house when median prices are 250K for anything but a shack in a bad neighborhood that's a bloody 2 hour commute with gas prices anywhere from $2.50 to $5.00 a gallon depending on who farted in Iraq today.  


Let's also not forget about our beloved Sheriff Joe whose corrupt administration has the feds and the ACLU setting up permanent offices just to keep an eye on him.  Socially and politically Arizona is the Mississippi of the Southwest.  We make Texas look progressive by comparison.  Nothing gets done around here unless there's a greased palm and plenty of photo ops for someone's coffee table book.  


But I digress...


The weather is what it is, it's a freaking desert you know.  You completely forgot to mention the monsoons which make it more humid but it does cool us off from July to September.  Late May through mid July are usually the hottest months.  What really irritates me though is that this city including all the other satellite cities that surround it has done absolutely nothing to combat sprawl.  The people with money here are the developers and they'll put up a 15 story office building just for the hell of it.  Then we got all of the refuges from California in the 90's and doubled the population.  


Now we have freeways that look like the 405 6 hours a day and even more competition for the few good paying jobs available. 

Traffic is bloody awful and the combination of Midwest and California drivers makes any trip an adventure.  Either they're going too fast, too slow or both while they babble on endlessly on their cellphones.  Traffic is bad everywhere but it's doubly so here because you never know what to expect depending on what part of the valley you're in.  It can take over an hour to get from Mesa to NW Phoenix on a Saturday evening.  

A trip of less than 50 miles on freeways with a 65MPH speed limit on a weekend day because of the equivalent of an early morning weekday rush hour at 5PM on a Saturday!  Let's not even talk about the elephant in the room.  The fact that 4 million people depend on a water source fought over by 4 states and the western half of the country is in a severe drought!  Are you people freaking nuts?  It's only a matter of time before the chamber of commerce has to admit that there's not enough water to sustain this many people. 


As for the people, yeah Scottsdale and the Biltmore area have their noses in the air like any wealthy zip code but there's far more zip codes that average less than 25K a year in wages meaning there's lots of places you don't walk to dog at night.  Most people are friendly enough on a superficial level but don't expect  much more than that.  People are usually very transient only sticking around a few years before bouncing off to the next new subdivision.  Everyone works very hard to keep up appearances even if they can't afford it.  That's what Phoenix is.  I don't know where this lady was living."


Saturday, June 15, 2013

The real cost of living

I've been thinking about the price of things and the money it takes to buy them and I've made an obvious but as far as I can tell unrecognized connection.

It's said that the value of the U.S. dollar has been declining for years.  Go over to the Dollar Times inflation calculator (I have it bookmarked) and see for yourself.

As I've played around with it I've happened upon an interesting anomaly.  It appears that sometime around 1942 the value of the U.S. Dollar started declining steadily. This was almost a decade after FDR decided that gold was only useful for jewelry.  1942 was the first full year of the U.S. involvement in World War 2 so considering the economy was on a wartime footing it makes sense that the consumer economy was going to take a hit.  That's what happens when you actually try to pay for the wars you engage in.

What's strange is that it's a trend that's never stopped.  It leveled off for awhile during the "Great Recession of 2008" but continued its decline shortly after.  Most economists will tell you the only reason it didn't plunge further was due to government intervention and a lack of economic activity in general.

Look, economic babble aside, the  truth is that your buying power is continuously eroded over time and there's nothing you can do about it.

Regardless of your political affiliation or whether you care that the money in your pocket has been based on little more than good intentions (Fiat currency) for the past 4 decades the problem is self evident.   With apologies to Thomas Jefferson, the "rights " held self-evident have been little more than political marketing for the past century.

After all, even if it's worth less, it just feels good to have a million of something even if it only has the buying power of your kid's lunch money in a few years.

So if our money is worthless, why do we accept the excuse for higher prices being higher costs of production? 

Does that sound like a stupid question?  Then you're probably a stupid person. 
Sorry, but you were probably already chewing on the arm of your chair by now anyway...

What's really stupid is that we accept the fact that our money is worth less which naturally makes things cost more but don't give a second thought to how badly we're getting ripped off.

Let's go back to our Inflation calculator and stick in some numbers.  Say $40,000 which was a decent salary in 1985.  In fact it was a great salary and in 2013 dollars you could buy $87,217 worth of stuff. 

In little more than a generation our money has lost more than half its buying power.  Yet our wages are still based on those same 1985 numbers.  Somewhere, somebody in HR or accounting thinks that $40,000 will still let you buy a house, feed your family and save a few bucks for a rainy day.

It's perfectly acceptable to raise prices to compensate for a currency with declining value. It's only fair to charge more if it takes more money to produce the same item.

So how is it that demanding fair compensation for slowly killing your soul in some cloth covered cubicle suddenly makes you unreasonable? 

If everyone is getting what they need then everyone should be happy, right?

Thing is, very few of us are and the only relief we get are sound bites and token gestures from politicians crafted to quell the uproar till the next news cycle. 

It's the reason why politicians don't like to run on their records anymore and instead choose to act like bullies in a schoolyard.

It's not about rich versus poor or conservative versus liberal economics.  It's about expecting blood from a stone.  It's simple, if your money is worth less you have to have more of it just to maintain your standard of living.  A cost of living raise isn't a luxury it's a fact of life when you live in an unpredictable economy. 

I don't buy the big business wailing over minimum wage increases either.  If you can't afford to pay for the resources you need to conduct business then you don't know how to run your business.  It's exploitation, nothing less.

In fact, because business has gotten away with economic indentured servitude for half a century they've actually hurt themselves.  It's not the rich who keep the GM's, Chrysler's and Maytags in business.  It's the average Joe sitting in the morning commute 5 days a week.  If he can't buy your goods you're out of business. 

Talk about shooting yourself in the foot. 

Why do we accept this? If the value of our money is based on good faith and that faith has been violated then why do we continue to accept the whole premise to start with?

I've often said that the oil companies can charge whatever they want for a gallon of gas just so long as everyone's wages are adjusted to compensate.  Charge $20 a gallon for all I care, just make sure the average income is in the six figure range. 

If it costs you that much to deliver the product then I should be able to meet that demand from the rewards of my labor.  Anything else is economic opportunism on the backs of labor.

In the end , most of us have ended up living one check away from financial ruin while the Suze Orman's of the world chide us for spending our meager resources too frivolously.  I know your heart's in the right place Suze but your understanding of economic theory borders on fantasy. 

Until the slow slide from employment to indentured servitude stops in the developed world we need to stop blaming ourselves for all the economic ills and personal financial woes. 

We need to demand that wages reflect the world we live in now, not the one our grandparents knew.  It's not unreasonable unless you sit in the executive suites counting the millions you steal from your employees every day you don't pay a wage based on what used to be called "the cost of living"

Friends it's simple.  the rich are getting richer not because they're smarter or luckier than us.  They're getting richer because they're benefitting from the fact that you're not getting paid what you're worth.

If you think I'm wrong, well, I can guarantee you're not worried about feeding your kids next month.

Think about it.