3rd Quarter 2021

The digital age is here and local companies may have to alter their models to compete. New businesses are emerging due to pandemic fears, child care issues, and quality of work, life balance. The low barrier of entry to the internet and remote startups and jobs is paving way to this phenomenon. $15 an hour is the new bench mark for many to keep their heads above water with increasing home and rent prices along with gas and food prices for the average worker.

At the same time the Dow Jones is up and many consumers with more savings and policy stimulus to spend is helping the economy to rebound. The GDP barometer is projected to pick up where it left off before pre-pandemic levels. The supply shortages and employee shortages are leaving many bewildered. Recession is typical when there is too much housing, too much debt or too much inflation. But this is not the case because bankers are in good shape and poised to lend with a loss absorbing capital at 16.5% of risk weighted assets compared to 12.3% in 2006.

While some argue the unemployment checks are stunting full employment, others are actually hiring like Chick-fil-A, Amazon and Starbucks because of strategies to compete with sound hourly wages and insurance on day one. Those low wage service jobs are becoming unsustainable in supporting median household incomes. This is a real life case study we are experiencing because it’s historically unprecedented and the measures to pay attention here may be either contributing to continued economic improvements or an unforeseen imbalance.

Leave a Comment