The Investment Thread (10 Viewers)

[brandon8283]

Translation = we want people to go back to working for minimum wage but they won't when unemployment is literally the same as minimum wage.

I say end the supplement but raise the minimum wage to $15 at the same time, or if Republicans won't bite, just don't end the supplement and force companies to pay a living wage to compete.

 

[DaveXA]

Translation = we want people to go back to working for minimum wage but they won't when unemployment is literally the same as minimum wage.

I say end the supplement but raise the minimum wage to $15 at the same time, or if Republicans won't bite, just don't end the supplement and force companies to pay a living wage to compete.

I tend to agree. Of course, businesses are either just going to wait it out or pay people more to get those positions filled. Waiting for something that will take years to implement isn't really going to happen, imo.

 

[DaveXA]

As always, I find the sort of discussions around ending employment benefits or not fascinating. I think it really highlights the danger we have now where people appear to be living in separate realities, and entrenchment in positions.

And I wouldn't ever argue against unemployment benefits. The real question is one of how much is a reasonable amount. Without the federal addition, state unemployment is really, really low, not to mention temporary. But, when you add the federal benefit on top of that, it could be argued that it's enough to cause people to decide not to work. I don't know what the right answer is, but I don't know if what's being done currently is sustainable for any extended length of time.

 

[Kegger]

That's a good question... should $300 a week be a permanent living wage for anyone unemployed?

 

[DaveXA]

That's a good question... should $300 a week be a permanent living wage for anyone unemployed?

At a minimum, yes. I mean, $1200/month really isn't enough to live on. My rent alone is more than double that.

 

[Mr. Blue Sky]

I agree that it’s a “problem” when people make more money on unemployment than they make while working... But the problem ISNT with unemployment insurance , or with the people collecting It- the problem is the system, and more specifically, employers who pay starvation wages... Can anyone here honestly blame someone for not jumping at “all the jobs available” when the majority of them pay in the $8-$12 an hour range?? I dont have a link to back up that amount, but anecdotally speaking, i think it’s a pretty reasonable guess.. if anyone has evidence that the majority of jobs available now pay a decent living wage, then please correct me.

 

[superchuck500]

Here's a story about the revolutionary way that some Pittsburgh businesses filled their labor shortage (spoiler alert - they raised their wages):

https://www.bizjournals.com/pittsburgh/news/2021/05/04/how-local-companies-are-filling-open-roles.html

 

[brandon8283]

But, when you add the federal benefit on top of that, it could be argued that it's enough to cause people to decide not to work.

Because why work for poverty wages when you can chill on the couch for poverty wages?

In Mississippi, the maximum state benefit is $235/week. Add that to the federal $300/week and you're at $535/week, which amounts to $13.38/hour. Other states that pay more go up from there.

So yea, there's really no reason to jump up and take a job that's paying $9/hour.

I agree that it’s a “problem” when people make more money on unemployment than they make while working... But the problem ISNT with unemployment insurance , or with the people collecting It- the problem is the system, and more specifically, employers who pay starvation wages... Can anyone here honestly blame someone for not jumping at “all the jobs available” when the majority of them pay in the $8-$12 an hour range?? I dont have a link to back up that amount, but anecdotally speaking, i think it’s a pretty reasonable guess.. if anyone has evidence that the majority of jobs available now pay a decent living wage, then please correct me.

Yep.

 

[superchuck500]

Over the last decade, private share offerings have been more accessible through various platforms. I have belonged to one of them, MicoVentures, for years but I have only ever bought one company. In 2017, I bought shares of The Honest Company through MicroVentures that had a fund with access to a round of Honest Company capital raising, at a share price of $17.50. In 2019, the company did a 2 for 1 split, reducing my basis to $8.75 (minus the 5% placement fee). I liked the company because I had just come through getting two babies through the toddler years and saw how much we valued low-chemical, sometimes organic products and this company seemed really well positioned in that space.

When you buy something like that, your hope is that the company either gets bought/acquired, or goes public. I've been monitoring the company and was never sure if either would happen. We learned two weeks ago that Honest was going public - HNST ticker symbol. Analysts put the IPO share pricing between $14 and $17. After the bell, it went live and shares shot up over $23. Right now it's hovering just below $20. I can't sell for at least 180 days (private share lockup period), but I'm happy with this. There was a time when I didn't think this investment would ever see a return.

 

[Saint_Ward]

That's a good question... should $300 a week be a permanent living wage for anyone unemployed?

Depends. First off, let's remember this is a short term assistance that was expanded due to the pandemic. I think the standard is 12 weeks, was expanded to 39 weeks, and it was pushed to 50 weeks later in Florida (and maybe all states?). There is also a 'maximum benefit', so if you hit that number before your weeks are done, then you're done. No more $$$. I think in Florida it was $3300 or close. Which is basically $275*12. They added programs to keep it going past that. And this doesn't include the Federal money, which doesn't add to your maximum. Florida pays a max of $275/week. And if you went over your max $$ amount, you then had to apply for the PUA program or something, and every step was a major pain here.

I think States that pay a higher unemployment rate (i.e. more than $275/week, may not need the federal money.) But States that purposefully keep it super low to entice business, is kinda crappy. Florida's is far too low. Texas is more like $500 ish, I believe (no time to look it up).

Most people who were laid off last April, are no longer getting unemployment, unless there is something new that re-extends anyone, that I'm not aware of.

At the end of the day, we want as many opportunities for work as possible. But it needs to be a just wage, an environment where employers will train people up, where they can, vs look for the exact replacement of the person going out the door, and child care and other flexibility needs to be a bigger priority.

 

[Kegger]

At a minimum, yes. I mean, $1200/month really isn't enough to live on. My rent alone is more than double that.

True, at least in most large cities. There are cities where you can rent a 1 bedroom for $600/month, leaving $20/day for food and still covering some other things like utilities and clothes. It's certainly not a glamorous life, but you can survive on it. There's a difference between surviving and living though, I suppose.

 

[B4YOU]

As always, I find the sort of discussions around ending employment benefits or not fascinating. I think it really highlights the danger we have now where people appear to be living in separate realities, and entrenchment in positions.

People are complaining about UI while not saying word one about forgivable PPP loans or direct stimulus.

I suggested earlier making fed UI matching based on state UI. This would take into account COLA. If it was a 50% match then LA paying $250 gets $125 while a $600 state gets $300. This also encourages states to stop paying UI rates that result in homelessness. Plus it would have reduced federal spending.

People will blame inflation on UI and direct stimulus. Some of that will be true. However, sole proprietors getting 20k with zero loss of revenue while W-2 people in HCOL didn’t get checks or less than 2k is a problem.

Every CEO is talking inflation. We are already above the 2% fed goals at 2.4%.

Let’s take pent up demand, add lower supplies, dump huge sums of money on businesses and individuals in no way proportional to their need, and figure out how to pay for it after an election.

 

[Saint_Ward]

True, at least in most large cities. There are cities where you can rent a 1 bedroom for $600/month, leaving $20/day for food and still covering some other things like utilities and clothes. It's certainly not a glamorous life, but you can survive on it. There's a difference between surviving and living though, I suppose.

So, if someone has kids, and they get laid off, they should attempt to move into a cheap 1 bedroom apartment to survive? Will $20/day in food feed 2-3 people?

I mean, you're talking $1200... so $600 rent, $600 food ($20/day times 30 days is $600). I guess Utilities and gasoline are free? Let's say your utilities are $300. That leaves you $10/day for food. This assumes just minimal car insurance, no car payment. or if you're unemployed for 12-30 weeks, you sell your car too?

 

[DaveXA]

So, if someone has kids, and they get laid off, they should attempt to move into a cheap 1 bedroom apartment to survive? Will $20/day in food feed 2-3 people?

I mean, you're talking $1200... so $600 rent, $600 food ($20/day times 30 days is $600). I guess Utilities and gasoline are free? Let's say your utilities are $300. That leaves you $10/day for food. This assumes just minimal car insurance, no car payment. or if you're unemployed for 12-30 weeks, you sell your car too?

Yeah, if you have a family, you'll run out of money in a hurry.

 

[B4YOU]

So, if someone has kids, and they get laid off, they should attempt to move into a cheap 1 bedroom apartment to survive? Will $20/day in food feed 2-3 people?

I mean, you're talking $1200... so $600 rent, $600 food ($20/day times 30 days is $600). I guess Utilities and gasoline are free? Let's say your utilities are $300. That leaves you $10/day for food. This assumes just minimal car insurance, no car payment. or if you're unemployed for 12-30 weeks, you sell your car too?

The only states that pay 300 or less with no dependency allowance are LA, MS, AL, FL, and AZ.

If you are a single mom living in one of those states with no savings, then your best plan is having extended family or friends with whom you can live.