We’ve been dealing with this for years now, but why does it still persist?  Finding staff, sales associates, stock room, and warehouse employees has been a full-time job.  Here’s the back story, which you may have already guessed, but now you can know the facts and act accordingly.

  1. During the Pandemic, the federal government handed out $5 trillion.  Consequently, Americans had a lot of cash on hand with little opportunity to spend it.
  2. So there was excess demand and low supply when President Biden was elected.
  3. In an effort to put their economic policies into action, “The American Rescue Plan” was passed at the cost of $1.9 trillion.
  4. Both parties are good at spending money, so judging what was done prudently and what was not is not the objective of this Sales Facts, we just want you to know where we are and how we got there in broad terms.
  5. So, as to the constant need to be hiring, a recent study headed by University of Chicago economist, Casey Mulligan, “Paying Americans Not To Work,” found the following:
    • In 24 states, unemployment benefits combined with ACA subsidies for a family of four, with no one working, can equal over $100,000 per year between cash and benefits.
    • In 14 other states, the above number is $80,000, which is more than the average salary for a construction worker or an electrician.
    • That’s 38 out of 50 states!
  6. Here we are two years after the pandemic, and people are still being encouraged not to work, causing most of us staffing problems and higher salaries.

Hopefully, the Fed will cease raising interest rates, and we can avoid a full-blown recession, but we still need policies to get people back in the workforce for the economy to grow and our businesses to run more smoothly.

Onward & Upward!

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