California Dreaming - Minimum Wage Edition

Washington continues to report rosy economic data, and the general public continues to not believe it. Why is the average American so down on the economy when the official data suggests they should be happy? Is it inflation? Is it societal divisiveness? What is the real story?     In this week’s Trading Perspectives, Sam and John discuss the disconnect between the public’s perception of the economy and what the government is saying is the reality. Who is right?

The recent turmoil, protests and an apparent lack of accountability at many prestigious American institutions of higher learning have begged a question: is an Ivy League education still worth the cost? Does the rarefied air of these schools for the elite still impress the American public the way it once did, not so long ago? If not, why and when did it happen? What’s more, will it ever again.   In this episode of Trading Perspectives, Sam and John discuss the ongoing protests at numerous Northeastern colleges and universities and wonder whether these schools will return to position of prominence with the common man. The answer isn’t as simple as yes.

With all the turmoil around the world, and the subsequent drawdown on US stockpiles, just how prepared would the US be if the planet erupted in a hot war? Would the United States have enough ammunition, missiles, ships and planes to fight several different types of wars on several different continents? What’s more, is the American public ready for such a thing?   In this week’s Trading Perspectives, Sam and John discuss about American military preparedness in what is increasingly a dangerous time.

Last week, the minimum wage for fast food workers in California went to $20. This will become the de facto minimum wage for unskilled labor across the state. While it might seem like a win for workers, what will be the likely end result? After all, someone will have to absorb this mandated cost increase, and it isn’t just going to be employers. Don’t tell anyone in Sacramento that, though. In this week’s Trading Perspectives, Sam and John discuss the concept of the minimum wage and what its real impact is. If you took an Econ 101 class, you already know the answer.

Last week, a wayward container ship struck the Key Bridge causing it to collapse. This effectively closed the Port of Baltimore until the powers that be can clear the wreckage from the shipping channel. Will these delay derail the US economy? Will it cause supply chain issues up and down the East Coast? Will we have to wait months for our cars, our coal and our sugar? In this week’s Trading Perspectives, Sam and John discuss the recent collapse of the Key Bridge and what the indefinite closure of the Port of Baltimore could mean to the US economy.

The recent turmoil in Haiti begs the question just what is the United States’ role in that fractured country? However, what should our role be in the Democratic Republic of Congo? Somalia? Myanmar? Gaza? Ukraine? The jungles of Colombia? Central America? And any other place which is suffering with internal strife, famine, civil war and worse, if that is possible? Should Washington spend taxpayer money and risk American lives meddling in other countries’ affairs? Are there any generational differences?   In this week’s Trading Perspectives, Sam and John talk what role the United States should play as police force to the world? Is that something Americans want us to be any longer? Will our younger generations even take up arms to do so?

This week the Administration restated tailpipe emission standards which will effectively end the American auto industry as we currently know it. The goal is simple: to have more Americans drive more electric vehicles in order to drive down harmful carbon emissions. However, as the old saying goes, for every action there is a reaction. Did the Administration really think through all of the probable consequences of its emissions mandate? At first blush, it wouldn’t appear so. On this week’s Trading Perspectives, Sam and John discuss the recently announced tailpipe emission standards and how the US economy simply isn’t ready, willing and able to abide by them.  

Everywhere you look, it seems people are doing better than you are. They drive nicer cars. Eat better food. Wear nicer clothes. Have cooler friends. Take fancier trips. You name it. However, the chances are someone is looking at you, and feeling the same way. This begs the question: can money really buy happiness in a society which consumes so much of it? At first blush, it would seem so. But can it really? In this week’s Trading Perspectives, Sam and John talk about whether money truly can buy happiness. Are there any generational differences? Or does it depend on everybody’s unique definition of what happiness means?

What if they threw an election and no one cared? After all, both Biden and Trump had pretty much locked up their party’s nomination long before this week. So, a lot of Americans didn’t even bother voting. How will the sense of resignation impact the consumer and markets over the long months to November? Is the recent rally in cryptocurrencies and precious metals due to this sour sentiment, this angst, or something else? How much longer can it last? On this week’s Trading Perspectives, Sam and John discuss the recent Not So Super Tuesday and what it could mean for the remainder of the year.

The government says the economy is growing rapidly and the U.S. consumer is alive and well. However, people don’t seem to believe this apparent good fortune, and complain about having to tighten their belts. So, just how strong is the U.S. consumer? And, what would you least be willing to cut out of your budget if worst came to worst? In this week’s Trading Perspectives, Sam and John talk about what they would chop and what they would keep in their budget if times really got tight. Are there any generational differences and Trading Perspectives?