Sunday, October 01, 2017

More thoughts on inflation and labor markets

I went to the dentist on a couple of weeks back, what I can't help but to think of as "spa day," because I get to recline in a comfortable chair while women minister to me. My dentist even gives me a mouth and jaw massage at the end of the exam while checking for cancer! Awesome.

 There was a new hygienist, as there often is. That is not reflective on the quality of the dentist I go to (she is the best), but rather the state of the labor market for hygienists. There just aren't enough. So they can go where they want to and can always get more money.

This one used to work at the UNC dental school, where she liked participating in the mission of preparing new generations, but her advisory case load and hours were excessive, made it hard to get home to see kids. Basically, the university treated her as captive. So she left.

Her husband has been driving for UPS for a long time. They want to kick him upstairs too, but he likes the fixed schedule and is fine with the money and doesn't want the additional burden associated with managing other people.

Recently moved from Hillsborough to Chatham County so they could get a bigger piece of land. They are perfectly happy with their lifestyle.

This may be a little known piece of the inflation puzzle -- a lack of productivity growth leeds larger employers to expect higher hours at more responsible position as employees mature -- but people push back against it by not progressing. After all, the research on the "hedonic treadmill," which states that peoples' sense of overall happiness and wellbeing plateaus at incomes above $75k -- has been pretty broadly disseminated. People just have to resist the blandishments of consumer society.

I think that the fact is that, in geographic regions where there is affluence, it is perfectly easy for people to earn a living, so long as people (and their employers) are willing to abide by basic social norms -- employees accept roles within teams, get to work on time, be courteous, etc. This is easy enough to do for people with decent educations and decent role models in their households and communities.

Unfortunately, we aren't doing that well at facilitating these things for a lot of our population. Government owns some of it, individuals own some of it.

We had a chair delivered from a home design chain recently. It was delivered by a couple of guys, one of them straight up African-American, the other might have been Hispanic/African-American (he stayed in the house very briefly, which is why I can't remember). In any case, they drove up from a warehouse near Charlotte. The black guy said that he was from Maryland and that when he lived there he "mostly never worked," but since he had come down here he had been working steadily for 7 years. He was proud of it.

I think the idea that African-American males don't want to work is purest bullshit. Sure, some don't. I think many are just frustrated and stymied, and are hamstrung by nonsense misdemeanors on their records for shit that would never have stuck to a middle class white kid. Where the cops might have driven a kid home and talked to his parents, have made an effort to keep their record clean so as not to "mess up their lives." I have been getting to know a guy from Durham for whom this is absolutely true.

But now I am rambling.

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