1) First Walmart then Target and Dick’s Sporting Goods and now Best Buy have announced they will be closed on Thanksgiving, with more retailers expected to follow suit. The decision is in response to the coronavirus pandemic. Traditionally, Thanksgiving Day is the kick off of Black Friday sales, where retailers offer their lowest sales prices as the kickoff of the Christmas shopping season. But this also draws large crowds, something that goes against public health guidelines for social distancing. Instead, retailers will be offering their big sales online.
2) The spending habits of millennials had been credited with the decline of traditional consumer products, but now seem to be reversing for comebacks. Things like golf, starter homes and canned tuna are now on the rise, in part because of the covid-19 crisis. Some other products now on the rise is beer, mayo and cereal to name a few. More indications of how economic times in America are ever changing and becoming more unpredictable.
3) The pandemic crisis has sent the U.S. Postal Service into a fiscal tailspin, with President Trump saying he would not support a financial bailout until the Postoffice reformed its pricing of package deliveries for large on-line retailers like Amazon. But the federal government is preparing a $10 billion dollar loan to the Postoffice to continue services. This loan is part of the proposed $2 trillion dollar pandemic relief package passed in March, but the President said he wont spend the money until the USPS agrees to raise its prices. Much of the online retail business is dependent on the USPS to deliver their goods via mail delivery.
4) Stock market closings for – 29 JUL20:
Dow 26,539.57 up 160.29 Nasdaq 10,542.94 up 140.85 S&P 500 3,258.44 up 40.00
The ever shrinking economic opportunities for the millennials and generation-Z are leaving them with the worst deal ever.
James Lyman BSAE, BSEE, MSSM
Because of the continual displacement of jobs by technology, I’ve been saying that the youth of America is getting the worst deal ever, worst than the Indians selling Manhattan Island for just $24. Now Andrew Van Dam of the Washington Post has written an article with the numbers to substantiate that premise. Dated the 27th of May this year, his article “Millennials are the unluckiest generation in US history”, shows how the millennials have experienced slower economic growth upon entering the labor market, and the generation-Zs has even less to be expected.
As with so many analysis of economic opportunity for the millennials and generation-Z, there is no consideration for the obsolescence of people, the ever increasing displacement of people and their jobs by technologies. Their decline in economic well-being is due in large part because those good paying jobs of their parents are disappearing to machines. You now have 20 to 25% of new college graduates unemployed or under employed, simply because those jobs once open to these graduates have faded away . . . largely because of new technologies.
Mr. Van Dam’s article gives the facts as the Gross Domestic Product per person, a measure of the average personal wealth. In this case, the GDP after the first fifteen years from starting work, with the dollar amounts adjusted for inflation. Coming out of the Great Depression, the World War II era people, born between 1901 and 1924, had the highest with a GDP of $59,600, while their kids, the Baby Boomers were about half as much at $35,500. In turn, their kids were again about half of their GDP with $15,400. Each generation is reaching significantly less wealth in their early working years as seen in Mr. Van Dam’s table below:
Generation Group Birth Year GDP World War II, GI (1901-1924) $59,600
Baby Boomers (1946-1964) $35,500
Millennials (1981-1996) $15,400
The next generation, those born after about 2000, the generation-Z, for now are too young to have 15 years of working data to compare, since they are just starting to work. But there’s every indication they will do worst than their fathers. For the millennials, first 9/11 followed by the Great Recession and now the new recession, has continually set them back erasing their gains leaving them with little compared with their forefathers. While their fathers lost little in wages, which they were mostly able to recover, for the millennials there was limited recovery. The average millennial lost about 13% of earnings from 2005 to 2017 compared with 7% for the baby boomers. This lost continues with depressed life time earnings leaving the millennials with less wealth than previous generations, which translates into the homes they own, their savings for retirement, their long term debt. More importantly, for a hyper-consumerism economy, the millennials have a shrinking disposable income, which means fewer luxury things they can buy, an important part of consumerism. So this leaves the hyper-consumerism economy shrinking as evident by the decline of retailing with all the store closings across America. Estimates are that 25,000 stores will close by the end of the year, and 100,000 by 2025. But if hyper-consumerism collapses, what economic system will replace it?
More puzzling, even after years of economic growth, the millennials are below previous age groups. Why? This is the critical part so many are missing . . . the impact of automation and technology displacement. The millennials were born from 1981 to 1996, and started coming into the work force just when computers were an exploding technology finding their way into more and more of America business, and not just the large corporations, but down in the small business arena with just a few workers. For instances, look at the sophisticated accounting software that became available at that time. Less skilled people were needed to run a business, and less skill translates into lower pay. For the most part, technology didn’t directly replace millennial people with ‘robot machines’ rather technology chipped away at workers intellectual and skill levels requirements. This met that more people could do a job, and that in turn lowered the pay needed to get workers. This started the era of economic growth but with zero wage growth. To better understand, read “How to Make Obsolete People” at www.peopleobsolete.com, clicking on ‘Down Load Articles’ on the top menu, then the third article down.
The real problem for the future of millennials and generation-Z is their growing obsolescence which decreases their value and worth to the economic system. Mr. Van Dam’s article shows that the two generations has a ‘lesser future’ than previous generations, but in not considering the growing problem of technology displacement and its real impact on the employment environment, there isn’t any real understanding of why the millennials are the unluckiest generation in U.S. history.
The fact is, the millennials and generation-Z are getting the worst deal since the Indians sold Manhattan for just twenty-four dollars.
The thing to know is economic turmoil stimulates introduction of new technologies as businesses seek the means to survive, which then means more jobs lost to machines.
1) Another 2.1 million Americans are unemployed as the economy begins its reopening with restriction on economic activity easing in some parts of the country. One bright spot is the number of continued claims (people remaining on unemployment) dropped slightly from people returning to work. While the number of new claims continues to drop each week, it still remains at a record high, with the drop in new claims remaining higher than anticipated. The continued elevated number of claims isn’t a good sign, showing that we are not through the business shutdowns and possible closures yet, with some furloughs shifting over to permanent layoffs. The unemployment in America is now at 40.7 million workers.
2) Boeing aircraft manufacturer may be starting its recovery announcing the resumption of limited production of its 737 MAX after a five month halt. The 737 MAX has been grounded since March of 2018 because of software problems resulting in two airliners crashing. While the FAA has not cleared the airplane for return to passenger service, Boeing expects the 737 MAX to fly again in mid 2020.
3) The millennials and generation-Z are worst off economically than any previous generation, they are experiencing slower economic growth since entering the workforce than any other generation in U.S. history. It’s not just that it’s a bad recession, or that it’s hitting young people more, but rather that it’s hitting people who have already been hit by the Great Recession. Millennials have experienced slower economic growth since entering the workforce than any other generation in U.S. history, and they will bear these economic scars throughout their lives, with lower earnings, lower wealth and delayed milestones, such as home ownership. The old adage of ‘just work harder, sink or swim by your own effort’ no longer applies, because many millennials are now having to swim upstream against a much stronger current . . . from the forces of automation and technology displacement.
4) Stock market closings for – 28 MAY 20:
Dow 25,400.64 down 147.63 Nasdaq 9,368.99 down 43.37 S&P 500 3,029.73 down 6.40
1) Present Trump has renewed his threats to impose tariffs on imported cars from Europe, citing that the European Union is even more difficult to do business with than China. His comments signals he is turning his attention to renegotiating trade deals with the bloc. Automobiles have been at the center of trade tensions for the past couple of years.
2) The millennials own just 4% of American real estate by value, much less than the 32% which baby boomers owned. This comparison is with approximately the same media age of the two groups, meaning the millennials are far behind the baby boomers economically. While millennials may close that gap in the next four years, it’s unlikely they will reach 20% ownership, still far behind the baby boomers.
3) There is a rash of retail store closings after the holiday season, due to sales slump. Fashion retailer Express is closing 91 stores, Bed Bath & Beyond is closing 60 , Schurman Retail Group is closing its Papyrus and American Greeting stores for a total of 254 locations in the next four to six weeks. Express is the latest in a serious of fashion retailers to close, part of the struggle of malls to compete in the new retail arena. Last year, retailers Forever 21 filed for bankruptcy, with Charlotte Russe and Payless ShoeSource going out of business.
4) Stock market closings for – 22 JAN 20:
Dow 29,186.27 down 9.77 Nasdaq 9,383.77 up 12.96 S&P 500 3,321.75 up 0.96
#EFRPod we are back @ it once more, Sammy BE @ecofiretv, James Lyman @obsoletepeople & on the boards Magic Jon Don Sterling @thedramablock . We are the EFR Podcast show live and direct in your area.
This episode #EFRPod, we had the dubious pleasure to interview an an established entrepreneur business consultant, author, and motivational speaker, who happens to write for business/entrepreneur publication, INC. Magazine and he has lectured on the TED Talks lecture series; his name is Mr. Damon Brown @BrownDamon .
Damon came on to discuss entrepreneur development, generational entrepreneurial leadership, future business leadership models, what it takes to be a leader in business and in life, and his life successes and failures, and how he was able to evolve in his business mentorship role, and help others to achieve their goals and life long dreams.
1) The Dollar has hit its highest value for 2019, as measured by the Bloomberg Dollar Index. This is when President Trump wants the Dollar value lowered to position America better in international trade. The President claims that the Dollar is so strong now, that it is hurting other parts of the world. He is even suggesting that the U.S. should actually weaken the Dollar, although this could turn the trade conflict into a currency war. Presently, the U.S. economy is doing much better than global peers, so it is unlikely to deteriorate faster than other countries and therefore is unlikely for the Dollar to weaken on its own accord.
2) The millennials are turning away from the large elaborate houses of the baby boomers in the sun belt. Houses built before 2012 are being sold at a deep discount, sometimes as much as a half, so owners are not making a profit. Large homes are receiving 12% to 45% fewer views on the internet and are selling up to 73% slower.
3) America’s steel giant, U.S. Steel announced layoffs of hundreds of its workers in Michigan. The layoffs are expected to be temporary because of a halt in production at the Michigan facility, while also idling two blast furnaces. The reason for production cutbacks is lower steel prices and softening demand. The layoffs are anticipated to last about six months. U.S. Steel’s stock has dropped 73% since March of 2018.
4) Stock market closings for – 20 AUG 19:
Dow 25,962.44 down 173.35 Nasdaq 7,948.56 down 54.25 S&P 500 2,900.51 down 23.14
And Yes We’re Back Like Never Before. It’s the EFR Podcast Show featuring me (Sammy BE/Bizman Bassey) @EcoFireTV, James Lyman @ObsoletePeople & on the boards Jon Don Sterling @TheDramaBlock.
On this episode #33, the group interviewed social media manager Keith Dorsey @YoungGunsCEO. He happens to assist managing the careers of online mega stars such as RobbiiWorld, Hollywood Dollz & Woah Vicky.
came on the show to discuss social media presence, online platforms,
attaining a lucrative online following and base, as well as productive
advise for young entrepreneurs, trying to thrive in media… This is an
episode you got to listen to…..
1) Chinese economic growth has slowed to its lowest level in twenty-seven years, a result of the prolong trade war. Additionally, global growth has slowed, coupled with external uncertainties increasing. China is reporting a fall in both exports and imports for the first six months of this year. The Chinese are working on more stimulus measures to stabilize growth such as boosting infrastructure spending and interest rates cut, while also seeking loans from abroad.
2) Just like all youth, the millennials and generation-Z, have aspirations for their lives and the direction they want to go. Presently, these two groups comprise 40% of the American population, but like previous generations they disdain much about the older generation’s lives such as cars, big houses and material wealth. They want careers that make a difference even if not paying much, where they can provide some greater good to society. The fly in the ointment is their exploding student loan debt coupled with the growing obsolescence of American workers, in particular the younger ones.
3) Huawei, the Chinese telecommunications giant recently in the news so much, plans hundreds of layoffs in the near future. These layoffs are expected to be in Huawei’s U.S. development subsidiary Futurewei, a technology development center, which employs 850 people across several states. Blacklisted by the American government because of security risk issues, the company expects to lose $30 billion dollars in sales over the next two years.
4) Stock market closings for – 15 JUL 19: All three markets set new record highs.
Dow 27,359.16 up 27.13 Nasdaq 8,258.18 up 14.04 S&P 500 3,014.30 up 0.53
1) The Canadian book retailing chain Indigo is expanding into the United States with its new model for brick and mortar bookstores at a time when online book selling is squeezing out traditional American bookstores. Indigo’s success is credited by selling signature gift items along with their books, such as beach mats, bento lunch boxes, herb growing kits, scented candles and crystal pillars.
2) The drug giant CVS Health is closing 46 of its stores as they become more involved in health care services. Nevertheless, CVS remains a solidly profitable business, but like so many other retailers, is worried about Amazon’s entry into the prescription drug business. Amazon has acquired the online drug retailer PillPack, which could serve as a bases for Amazon’s launch into the drug retailing business.
3) The millennials and generation-Z are not the only Americans facing massive college student loans to pay off. Senior citizens are struggling to pay off their student loans. More than three million people, who are over sixty, are still paying for college loans, owing more than $86 billion dollars.
4) 2 MAY 19 Stock market closings:
Dow 26,307.79 down 122.35 Nasdaq 8,036.77 down 12.87 S&P 500 2,917.52 down 6.21