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This is post number 2000.

The only real significance is it is 150 posts more than where Tommywonk stopped exactly one year and fifteen days ago…

If some future historian looks back, I can only guess they may kindly make some note of the quality of thought that underlies these efforts, but my guess, is no one will ever notice…

Irregardless, as long as the urge to put thoughts down for others continues, we will go on. As usual, with no goal, no direction, and no ulterior motive. Probably upon reflection, my biggest surprise, right here, right now … is that I still enjoy it so much, and can’t wait to jot my thoughts down, click the button, and send them off to where ever cyberspace and the vast internet ocean, lets them drift….

For each of you who have become regular over the years, … thank you friend…

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We are looking at this the wrong way..

Losing 8 percent of a pay cut is not the end of the world. For if my expenses simultaneously drop by 10%, then I’m actually better off than I was today..

We are assuming our bills will remain the same, as our income drops, and that we will feel the pinch of that margin. Today I realized that is a missed assumption…

Hat’s off to Frank Ingram who pointed the way.

As a representative of the Delaware Department of Education, he is in charge of booking events for school children across this state…

Recently he has had to pick up the phone for an upcoming event and say ” I’m sorry, we just can’t pay you what we did last year…

Now the convention center, has no one else filling its slots… it needs that revenue to pay utilities and payroll, so it comes to a deal…

The event goes on as normal… The cost is lower, the kids are not disappointed, and the hotel sighs a deep sense of relief that it will not have to go empty that week…

How is this done?

One, the food was costed out at 15% less.. How? By substituting a marvelous Vegetable Primivera thereby eliminating the need for either beef, pork, or chicken… and creating a much healthier meal to boot…

Two: the conference rooms some of which were rented out at $6000, were dropped to $2000. That is still $2000 more than sitting empty….

Three: some of the amenities were quietly dropped. $350 dollars for dropping the video screen… waived.. $150 dollars per use of microphone? waived…. (it didn’t work half the time, anyway.)

Bottom line, life went on… much as it did last year… The happiness factor remained the same… The state spent less money… “”) The kids had a blast….””) The hotel had some cash on hand… “”) At the end of the day, all three parties were happy with their results.

As someone who has turned economics upside down and looked at every angle recently, Frank Ingram’s success was a prophetic revelation. I too had premised my argument that costs would stay static… but the scrambling of the hotel management out of necessity, proved that that assumption was wrong…

We will do what we have to do in order to survive..

So with that in mind, as the state’s employees face their 8% paycheck downsizing. there will be downward pressure on all prices.. For those in the private sector, are not getting the bonuses they once had during the times of scalping customers for all they could get… They too have cut back..

The thing to remember is this:

If prices drop 10%… an 8% pay cut is a 2% raise….

Evidence is showing this in real time… anyone who has bought cereal lately knows that $2.99 used to be the cheapest sale available… Now, it’s .99 cents…

Powerade and Gatorade: now between .75 cents and .88 cents a bottle.. Before: It never went below $1.25…..

Hamburger has been seen on sale for .99 cents a pound, just as it was during the nineties…

Gasoline, today at $1.99 a gallon will not sell if the price goes higher this summer… eventually creating a surplus that will push down the price again…

So the signs are there already.. Prices are dropping because there is no support to keep them propped up high… By cutting the expenses of the state by over 8%, we are lowering the entire price structure across our economic model.. We are decreasing the dollars available for consumption, and prices are dropping because of it…

I was far happier during the nineties… and a lot of it was about money… The funny thing is, I made a whole lot less back then… But as I flip through family albums, I realize that I did a lot more back then with less money, than I can afford today…

That doesn’t really make much sense… So where did all my extra money go?

Frank Ingram has pointed out the answer…. And it makes these protesters look just plain stupid.