Recently, I received an update I haven't seen in a while. Low or insufficient funds in your account. Generally speaking, I have my shit together but one common trait the Urtels do is squirrel money in different bank accounts. I suppose it's a sadistic joke my family plays when one of us dies and our money has to be rounded up for the estate. If you know me, I've become very fiscally savvy where in I utilize 0% for projects, balance transfers, and the like. Very not Dave Ramsey-like. Well, one day my one credit card that I used for a balance transfer overdrew an account I really don't use that often. I was able to transfer funds from other banks to cover the balance, but the whole thing got me thinking about a news piece that I recently saw. It discussed how Americans are switching to economy beers, which are your Pabst Blue Ribbons and Miller Lites of the world.
It goes without saying that the economy has been a roller coaster for the past 3 years for a specific reason. For a while, the common person didn't know if things were coming or going. If you received stimulus checks, the money either went to food and housing or it went to paying down debt. I had a steady job and so did my partner, so I was able to pay off credit cards. Others were not in that position and fell further into despair. This K-shaped recovery is ongoing. Some people turned to alcohol and drug use to cope with the stress of losing their jobs and way of life. In my 20s and early 30s, my personal economy was boom and bust. When times were good and I was employed, I was drinking the dankest IPAs in the USA -- as was the tradition. When times were tough and I was scrounging couches for coins, it'd be a 6er of Labatt Blue or PBR to wash down my daily 7-eleven hot dog rations. Anyone paying attention to the 2022 Q2 and Q3 earnings (as if that's any indication) and rising prices for consumer goods show that people in the economic middle and lower classes now have to mind their pints and quarts. Also, where can you buy a quart of beer?
Conversely, Diageo -- makers of Don Julio, Johnnie Walker, Casamigos, Guinness, and Smirnoff; have shown a 20% increase in "super-premium" spirits. How can this be?! Aren't we in a recession?! Well, if you look back to my last paragraph and the K-shaped recovery, there are people who aren't in dire straits. Hell, if you look at Congress's record in the stock market, they're outperforming traditional professionals. COVID has shown the greatest upward movement of wealth this country has ever seen.
As the great Tyler Durden said in Fight Club, "on a long enough timeline, the survival rate for everyone drops to zero." Fortunate for me, I was able to pool my resources together and took care of my credit card bill. I vowed to stick to the minimalist principles that helped me when times were tough. Previously, it was mandatory minimalism wherein I didn't have the capital to spend even if I wanted to! Keeping Tyler's quote in mind, it's important to know that the wheels will come off sooner than later. The ugly truths of economic theory will rear their head. Not for the pigs who call the shots but for John Q. Sixpack. Taxes will be raised because too much money has been printed and the poor and middle class will have to pick up the tab for bureaucrats whose only aim is to appease the masses to keep the jobs where they can inside trade. I have reduced my spending and trying to limit expensive outings to the bar. I love my friends and local businesses, but I can't be spending $250 per week on 'entertainment.' If you're a long-time fan of my work, it's been an enduring process. Having the knowledge of the what and why I do things, but having the follow through to actually do it. I believe that's called the power of action.
Good luck out there my friends and may the odds be in your favor.
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