12.04.20 12:00 ET
This video from Chamath Palihapitiya has been making the rounds of the financial geek world since it was first broadcast on Thursday, April 9th via CNBC:
I highly recommend watching the entire interview if you failed to record it as his insights were spot on.
The loud proclamations of “it’s the virus’ fault, not my own” or “it’s China’s fault, it’s no one’s fault” are excuses, not reasons. Thus let’s dig further into the problems which are about to trigger a massive 15-20% unemployment rate, if not higher by the time this crisis is over.
The company I’m associated with is in trouble but we knew the dangers. We invested in a narrow specialized product line which if such an event as this occurred, we knew the risks we were undertaking. Should the economy finish the cycle into a total collapse and reset, we will go under and the owners will lose our investments and become unemployed like our employees.
That is real capitalism. The high risk, high reward aspects of our venture entails that absolute potential for a total loss or great profits. As for the employees, yes we did apply for the PPP (more aptly nicknamed Piss-Poor Program as to how it is being run) from the government because free money which helps retain our employees is nothing to be passed up. Unfortunately, the program is so poorly planned and run, it might end up being too little, if anything at all, too late.
But why does the bakery employee, nursing assistant, restaurant owner, or farmer deserve to become unemployed?
You, the individual, deserve the government you vote for.
And since 1928 the American voter has chosen the easy way out, abdicating personal responsibility for more oversight and “protections” from Big Brother Government.
The bakery employee wanted what was sold as better health care benefits so he or she voted for Democrats and Obama to provide what ended up becoming Obamacare. How did that work out for you economically the past seven years? And just what does this employee thinks happens to their costs after the pandemic passes? The health insurers and government will find a way to make the average person pay for their mistakes, that is all but guaranteed.
The nursing assistant did the same and ended up losing her job because when the pandemic hit, there was insufficient business for her specialization to continue operations at hospitals overloaded with COVID-19 cases. The assistant got what they wanted and now demands the very same government undo and reverse what they wanted. Not such a hot outcome now.
The restaurant owner wanted cheaper labor, cheaper food costs, and government oversight to ensure food safety thus to restrict competition. They got what they wanted. This owner may have voted for a Republican to boost business and let the good times go with open borders, cheap farm goods from third world countries, and just enough regulation to control the environment enough to limit competition. Now the food supply from these third world nations is under threat, cheap Chinese goods used to control input prices are cut off, and the labor be it legal or illegal is now sitting at home. So much for that plan.
Lastly the biggest welfare whores of them all next to banksters, the farmer. The farmers are guaranteed price fixing by the USDA and thus in many cases are allowed to over plant or under plant with the re-assurance that the taxpayer will always be there to bail them out via either insurance or subsidies no matter the poor fundamental business decisions they make. By voting for whichever party was the flavor of the day the farmers felt they would get the graft and protection necessary to operate unimpeded and very little risk. Now with the Communist Chinese market in doubt, the American public eating out less and at home more, Europe and Latin America becoming massive economic basket cases, and the government still promising bailouts, the American farmer is squealing the loudest once again.
The American public is driving less so guess what? The fuel corn farming community is demanding more bailouts (Ethanol lobby asks for a coronavirus bailout). The current coronavirus bailout for farmers is centered more on aiding the corporate agribusiness than the average family farm; is anyone really shocked? Thus those farms, especially corporate agribusiness and ethanol based farmers are now being bailed out regardless of how they managed their balance sheets. Add in the fact that these same farmers voted in favor of political elites who favored NAFTA which gave preferential treatment to Mexican farm goods over American grown for the sake of promoting lower retail prices and the chickens are proverbially coming home to roost. In my region of Florida for example, tomato growers were selling 25 lb. boxes of tomatoes for $5 each because northern customers were under contract to start accepting Mexican farm goods and could not buy the cheaper, safer, more plentiful product on the open market from Florida or Gerogia.
You voted for the idiots, thus you deserve their idiotic policies and the results.
My fellow Americans, a lot of this could have been avoided if we did not start selling our souls to the Communist Chinese government in the early 1990’s. Yet voting for Bill Clinton was the hip, cool thing to do because the media told the sheeple so. Then it was furthered, along with Clinton’s NAFTA policies by George W. Bush who also advocated open border policies above and beyond the original treaty along with even closer ties to China. Lastly Barrack Obama was so easy to sell on the idea of open borders, easy trade, and policies which hurt the American worker that outsourcing became an art form under his reign, prompting many industries, including crucial medical supply companies to locate overseas. Are the cheap products at ChinaMart really worth the price we’re paying now for almost 30 years of insanity?
Do not blame the capitalist, blame yourself. You wanted Big Brother and guaranteed freedoms but that reality will never happen as Big Brother decides what freedoms to ration to the people, with no guarantees.
If you wish to keep your jobs the next time a crisis comes along, I would suggest taking more time to vote for people who put America first and their personal profiteering second. There will be great pain in making this shift and an economic depression is almost all but guaranteed regardless of the actions the elites have taken or will engage in. It’s time to choose between sucking it up and accepting the pain as our nation re-aligns and puts our priorities first or continue on a path of globalist pain where the risks exposed by this pandemic continue to expand and control our economy.
Otherwise keep supporting the Lindsey Graham’s and Nancy Pelosi’s of the world and enjoy collecting your unemployment check along with your welfare allotment of food for years to come. The frauds at the local level exercising police state powers preventing companies at low risk from opening are no different than those hypocrites in Washington, D.C., just smaller in scale. As the prior President warned, “elections have consequences” and if you are just now realizing that, then my statement below holds true.
If you are unemployed, you probably deserve it.