after the pandemic???

[phaster]

after skimming the news this morning and reading about the rollout of the vaccine, found some real estate related news that caught my eye

[quote]
$130,000 for an 8-foot-by-8-foot shed? That’s what L.A. is paying in a bid to house the homeless

In other cities, 64-square-foot aluminum and composite sheds are being used as quick and inexpensive emergency shelter for homeless people.

Not in Los Angeles. Here, plans to employ the minimalist structures, known as “tiny homes,” have blossomed into expensive development projects with access roads, underground utilities and concrete foundations — and commensurate planning delays.

At the city’s first tiny home village, scheduled to open in January, each of the 39 closet-sized homes is costing $130,000, about 10 times what some other cities are spending. Five more villages are planned to open later.

Mayor Eric Garcetti announced the program in March, signaling that the concept of sheltering people in tiny homes, long neglected in Los Angeles, had emerged as a leading strategy in the city’s response to a federal lawsuit alleging it has done too little to get homeless people off the streets.

https://www.latimes.com/california/story/2020-12-12/los-angeles-tiny-homes-homeless
[/quote]

though I bring this up because its a reminder that even after the pandemic is over, there are still lots of big problems that remain

here in SD for example we too have a homeless problem, which as I read the tea leaves is only going to grow after the pandemic because of economic pressure

[quote]
San Diego Region Projected To Lose $12.4 Billion In 2020 Due To The Pandemic

…According to the SANDAG report, which looks at the first six months following stay-at-home orders, $4.8 billion in wages were lost and more than 176,000 people in San Diego County lost their jobs. The report also found that a disproportionate impact of job losses landed on women, minorities, lower-income earners and younger employees.

Compared to March, the report found in July there were 23% fewer lower-income employees — those making less than $27,000 a year. A total of 80% of jobs lost came in the tourism, retail and education sectors.

Middle-income jobs — those earning between $27,000 and $60,000 — are down 8.5%, while high-income jobs — those earning more than $60,000 — are down just .8%. The report found that the immediate impact for low-income jobs was greater and it will likely take longer for those jobs to recover.

https://www.kpbs.org/news/2020/oct/15/san-diego-region-projected-lose-124-billion-2020-d/
[/quote]

AND the economic pressure is only going to grow exponentially pretty much everywhere because politicians (and the bureaucracy) are essentially allowed to spend other people’s money w/ little or no adverse consequences,… AND simple truth is the majority of people did not have any money to spare even before the pandemic

[quote]
A $1,000 emergency would push many Americans into debt

Hundreds of thousands of people are living without a paycheck amid the longest government shutdown in history.

As a result, federal employees and contractors are digging into their retirement savings, filing for unemployment, picking up other jobs and unable to meet their rent or mortgage payments.

Most people would be in the same bind if they missed even one pay period.

Just 40 percent of Americans are able to cover an unexpected $1,000 expense, such as an emergency room visit or car repair, with their savings, according to a survey from personal finance website Bankrate.

Instead, many would put the expense on their credit card or take a personal loan. (More than 1,000 people were interviewed in early January).

https://www.cnbc.com/2019/01/23/most-americans-dont-have-the-savings-to-cover-a-1000-emergency.html
[/quote]

those of us who own rentals and have managed to build up a stock portfolio on average have not suffered (economically) all that greatly,… I just have to wonder with all the debt in the system, how much longer this can continue

[spdrun]

Isn’t money just 0’s and 1’s in a computer? Cancelling debts like student loans just takes a few keystrokes. Renting the homeless a decent apartment at $1000/mo, offering them psych treatment/job training as needed, and paying for their food would be a lot cheaper than having them rotate in and out of jails.

[phaster]

“money” whether 0’s and 1′ in a computer, some shiny metal or even some random item like sea shells only works when everyone believes the same thing

specifically WRT a smooth running economy, people have to agree upon three characteristics (for money)

1) store of value
2) medium of exchange
3) unit of account

given this framework AND said another way, if people trust they will be paid (i.e. “unit of account”) BUT later on come to believe they were not given what they think they were promised OR they think they are being asked to pay a bill which they don’t think they deserve,… there will be social disorder in the economy

specifically brought up the LA Times article about the homeless because seems this is yet another example where politicians (and the bureaucracy) essentially have been allowed to spend other people’s money unwisely,… $130,000 for an 8-foot-by-8-foot shed? WTF?!

was never a TRUMP fan and don’t want to open up a political debate, but seems its programs like this that cause conservatives (especially those who have not been fortunate enough to build up a rainy day fund) to question why should politicians (and the bureaucracy) essentially be allowed to spend other people’s on an 8-foot-by-8-foot shed that costs 130k

when I said at the end of the OP just have to wonder with all the debt in the system, how much longer this can continue,… consider here in SD WRT the local homeless issue

[quote]
In total for November, San Diego taxpayers spent $5.7 million to temporarily house about 900 people — just over $190,000 a day

https://www.sandiegouniontribune.com/news/watchdog/story/2020-12-13/convention-center-shelter-costs-exceed-40m-in-nine-months-city-records-show
[/quote]

now looking at the bigger picture of unreported news,… consider that politicians (and the bureaucracy) in this city once again (for the holiday season) with unanimous approval voted to give themselves a 13th pension payment,… despite the portfolio underperforming the target benchmark and being billions in debt (this FYI is the same portfolio mismanagement that caused the city of detroit to declare they were bankrupt)

at the end of the day seems there isn’t lots of value being created, given the amounts being billed to taxpayers for various programs being controlled by politicians (and the bureaucracy)

nuff said?!

[phaster]

listened to an NPR podcast about “modern monetary theory” (MMT) on planet money

https://www.npr.org/2021/01/20/958854717/modern-monetary-theory-classic

anyone trying to understand the economic future AND the role of bidens trillion dollar stimulus plan should listen to the story on MMT because it points out money only benefits the system as a whole if those at the controls understand there is a “speed limit”

basically if too much money floods the system which can’t be absorbed, there will be inflation!!!

one thing not mentioned in the planet money story by any of the left leaning economists who mentioned detractors point out the weimar republic, greece Venezuela or Zimbabwe (which are systems that all experienced hyperinflation), is the concept of triffin’s dilemma

https://www.investopedia.com/financial-edge/1011/how-the-triffin-dilemma-affects-currencies.aspx

long story short about bidens trillion dollar stimulus is the USA can indeed create money out of thin air so to speak, simply because after WW II at bretton woods there was an agreement that all global contracts are denominated in dollars,…

https://www.investopedia.com/terms/b/brettonwoodsagreement.asp

the economic idea of triffin’s dilemma comes into play because it points out all global currencies eventually fall from grace,… at one time the roman denarius (ruled the world),… before the dollar became the global standard, the british pound was where it was at,… and some day the dollar will fall

point being if the dollar is displaced by the Chinese Yuan, then life in the USA will become much more difficult

the reason I point out this glum economic possibility is because there are news reports that don’t get much notice because the pandemic is dominating headlines

for those not looking at the numbers,…

[quote]
San Diego scrambling to close $154M deficit, sharply up from $86M estimate in November

…The spike is the result of a nearly $50 million increase in San Diego’s annual pension payment

https://www.sandiegouniontribune.com/news/politics/story/2021-01-21/san-diego-scrambling-to-close-projected-154m-deficit-sharply-up-from-86m-estimated-in-november
[/quote]

[quote]
San Diego Faces Budget Cliff Without More Federal Aid

As the COVID-19 pandemic continues to choke the region’s economy, San Diego city officials are preparing to cut funding for parks, libraries, arts organizations, public safety and infrastructure if the federal government does not provide additional aid.

Mayor Todd Gloria said earlier this month he is expecting a deficit in excess of $150 million. He has since directed department leaders to come up with cuts of between 2% and 8% as he prepares to present a balanced budget proposal by an April 15 deadline.

…President Joe Biden has proposed $350 billion in aid to state and local governments as part of a $1.9 trillion relief package. That would dwarf the $150 billion allocated to states and cities in the CARES Act.

https://www.kpbs.org/news/2021/jan/22/san-diego-faces-budget-cliff-federal-aid/
[/quote]

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