Rent strike…

I read an article this morning calling for a 90-day or longer “rent strike,” which seems to be a classed-up way of saying even if someone can afford to pay their rent, they’re not going to do it. The assumption of this movement is that property owners across the country should just absorb the cost of housing for people who can’t or won’t pay.

Until a few months ago I was the smallest of small time landlords – having one condo unit that I rented out. Over the years of owning the place I squirreled away enough operating funds that I was able to make repairs and hold two or three months cash reserve to tide over those months between the departure of one tenant and the arrival of the next. In my very best year, I cleared $1495. Most other years I was lucky to break even or be a few hundred dollars in the black when we did the final accounting. There were more than a few years when I had to augment the rental income with cash infusions from my “day job” to make sure all the bills got paid.

That’s all a long way of saying that expecting landlords across the country to carry the freight of a rent strike indefinitely is absurd. Even assuming the property owner has a “day job” what they’re suggesting would have driven me into the loving embrace of the bankruptcy court at about the ninety day mark. 

The big bad landlord these people want to screw over isn’t only the 10,000-unit holding company or Bank of America, it’s also the retiree who lives down the street or the working man across town who took a step on the property ladder by buying a trashed property and fixing it up. I’m well aware that blood from a stone isn’t a possibility, but the fact that social media is running amok with people who want to portray withholding all rent, especially by those who have the means to keep their obligations, as a heroic act of rebellion is just infuriating. 

Maryland, my Maryland…

On March 25th, 1634, along the shores of the Potomac at St. Clement’s Island, subjects of the English crown first set foot in the Provence of Maryland.

No one loves to rant and rave about the government in Annapolis more than I do. Despite their never meeting a tax they didn’t want to levy and general disregard for the rights of citizens, I’ve always found myself drawn back to Maryland – to it’s shore, and its marshes, and its mountains. I never manage to stay away long. For all its political foibles, I simply do better when my feet are firmly connected to the good soil of my native country.

There’s more than enough going on in this old world of ours to keep me blogging every day for months. It would be incredibly easy to fall down that particular rabbit hole. It’s important during these times to remember that we’ve been doing what is hard here in this corner of the world for 386 years now. I don’t even want to guess how many “ends of the world” we Marylanders have endured in that time.

I’m a native son of Maryland and today I’m taking a break from the pandemic to celebrate it.

Taking it on the chin…

A few months ago I, somewhat tongue in cheek, told a coworker the best thing that could happen for my hopes of eventual retirement would be a few years of a bear market to suppress prices and let me “back up the truck” to buy shares at deep discount prices. As long as I can keep working and manage not to drop dead of the Andromeda Strain or whatever the appropriate name for this bug is, I suppose I’m technically not wrong… but boy is it a great big case of be careful what you fucking ask for.

The US economy is currently suffering through a system-level shock the likes of which almost no one alive has personally experienced. For those of us above a certain age, the closest we’ve come is listening to grandparents or family elders tell their stories – and wonder uncomprehending about why all those years later they still saved their soap slivers in a mason jar or insisted on getting three cups of tea out of each bag.

I like to think this isn’t the start of Great Depression 2.0. The fact that the economy was roaring along at breakneck speeds just a couple of weeks ago gives me enormous faith that it can be resuscitated… eventually. Once they’ve exhausted all other options, Congress will push through bailout plans to pour trillions of dollars through the front door of the Treasury. The Federal Reserve has committed to buying government debt with reckless abandon.

Even with herculean efforts, a host of businesses will fail. No economic recover package ever passed through government can prevent that. Cash flow is the life’s blood of business and with that flow stopped, even temporarily, many won’t have the deep reserves it will take to emerge once we’ve arrived at the new normal. The best we can manage in the moment is likely following a “harm reduction” strategy – of propping up what we can and finding as soft a landing as possible for those in the workforce who are displaced.

It seems that President Trump is determined to take a short cut through the amount of time science says we need to keep the clamps on the economy. That’s a foolish and stupid take, but in some ways, I can understand the instinct. Even those who get through the pandemic with little or no ill effects will feel the unnatural consequences of an economy gone to hell in a handbag.

There’s a point where declaring business as usual will make sense. I don’t think that’s this week. I don’t think it will be next week. If you believe science, and you should, it’s not even likely to be in the next month.

As you know, I despise the media obsession with calling this the “war against COVID-19.” Even so, I take a degree of comfort in knowing that historically, the United States almost always loses the first battle of every war we’ve ever been in. We take a punch right to the chin, get knocked down, and then get up off the ground angry and looking for payback.

Today we’re still on the ground, but we’re going to get up, and when we do, we’re going to be collectively pissed the hell off and ready to do what needs to be done.

A war footing…

I hear a lot of calls to “put the nation on a war footing” to battle COVID-19. There’s a lot to unpack in a statement like that. Going on a “war footing” has implications beyond what people seem to think it means.

A few nights ago I heard one of the endless number of network talking heads claim that during World War II, Ford Motor Company was making a new 4-engine bomber every 63 minutes. That statement is absolutely true… but only if you’re looking at a range of dates from 1944 or ’45.

The B-24 Liberators built by Ford would darken the skies over Europe and the Pacific by the end of the war… but when America entered the war in 1941, exactly none of those planes had been built. Ford didn’t start building the plant (Willow Run) to build those bombers until about 1940. The plant wasn’t finished until 1942. In ’42 and ’43 production suffered from a combination of issues ranging from supply shortages, product quality, labor/management disputes, and the sheer learning curve of translating automobile production into building aircraft. What worked for building cars didn’t always translate directly into building airplanes.

Because of these challenges, Ford didn’t meet their legendary “bomber an hour” goal until 1944 – three years after America went to war and four years after they began construction on Willow Run, and only a year before the war ended.

All I’m saying is try to bear reality in mind when you hear someone say “just tell a company to ‘start making’ Product X,” whatever the product happens to be. It took Ford two years to get there even when they had the plant and equipment in place. There’s a lead time from demand signal to production. Companies that build respirators likely aren’t sitting on a lot of spare plant capacity “just in case” a once-in-a-century pandemic breaks out. New plant and new producers can be brought online, but it takes time and a massive infusion of capital… and the faster you want it, the more it’s going to cost. There’s no way around it.

If you’re saying you want the US economy to focus on kitting out the supplies and equipment needed to respond to COVID-19 to the exclusion of almost all other consumer goods, we can do that. We’ve done it before… but putting us collectively on a “war footing” has long lasting consequences and second or third order effects that absolutely no one has even started to consider.

Morality and ethics aside…

I’d be lying if I said I don’t have deep misgivings about what appears to be the exercise of increasingly unchecked power by both the federal and state governments. That’s especially true when the discussion turns to the he power of the state to “lock down” people within entire geographic areas or perhaps the entire country. Where it makes perfect sense from a medical or harm reduction standpoint, it creates ponderous questions about due process rights, false imprisonment, and the Constitutional protections Americans enjoy against arbitrary government action. Where government reasonably can require a contagious person into quarantine, does that power also extend to people who aren’t sick? Should it?

I guess you can go ahead and add constitutional scholar and medical ethicist to the long list of things that I’m not.

The morality and ethics aside, I’m wondering at what point people begin to reject medical advice in favor of “living their best life” and rolling the dice. Having spent a lifetime watching people, and Americans in particular, I hope you’ll forgive me if I doubt the average person will be perfectly willing to live under a regime of social distancing, isolation, closures, and economic armageddon for as long as the 18 months or more that Imperial College is speculating it may take for COVID-19 to run its course

Long Range or: The Return to Normalcy…

In tense and uncertain times there’s a tendency for all of us to look towards our own personal bubble of responsibility. That’s not a bad thing. Taking care of kith and kin first feels like it could be our oldest instinct.

There’s no point in denying that some people are going to die as a direct result of this virus. Not acknowledging that would be foolish and wrong. For most of us – the vast majority – coronavirus could well end up being not much more than a monumental inconvenience – a way point in life we’ll use to measure other moments against. Twenty years from now we’ll ask whether something happened before or after COVID-19 the same way we do now with September 11th.

That’s all a prelude to saying sooner or later we’ll all get back to living “normal” lives, with the rhythm of nights out, family gatherings, and well stocked supermarket shelves restored. If you accept that there will be a return to normalcy, you owe it to your future self to spend some time thinking about what you want that future world to look like.

In that spirit, I went online last night and placed a few orders for books that have been lingering on my “to read” list. It was nothing crazy – Just four orders each costing less than $15. Each one of those sales went to small, independent book shops. It’s a niche market to be sure, but one I have a vested interest in preserving through the current economic uncertainty. For these small businesses, every dollar coming in will matter as they fight to make good on their rent or finding a way to keep paying their staff. Keeping these businesses alive is important.

Those who have the ability to do so have an obligation to make sure the smalls, locals, and independents are still alive and kicking when we return to normalcy. You’ll regret it if we don’t.

What I learned this week?

I’m not usually one for buying into the wisdom of movies, but I’m a life-long watcher of people.

Back in 1997, Tommy Lee Jones played a no nonsense agent keeping the world safe from the aliens among us. He said “A person is smart. People are dumb, panicky dangerous animals and you know it.”

Watching my fellow Americans “planning” and “preparing” for COVID-19, the zombie apocalypse, or TEOTWAWKI, basically confirms that his lines ring out across the ages as the most truthful words ever committed to film.