It’s Presidents Day…

…and your bankers are not picking up their phones.

Some little known facts about the Presidents of the United States

• Not only was William Taft the 27th President of the United States, he was also Chief Justice of the Supreme Court and was the first President to be buried at Arlington National Cemetery.

• William Henry Harrison was the 9th President of the United States and the first to die in office; he had been President for only 31 days.

• 1776 is when the Declaration of Independence was signed, but it was the Constitutional Convention in 1789, 13 years later, that established the means to elect a President of this brand new country. That is why George Washington is considered the Father of the Nation for his contributions to getting this Republic idea going. 

It is so easy to go down the Wikipedia rabbit-hole with that stuff.  Back to business.

What is the Produce Price Index?

• The producer price index is a price index – duh - that measures the average changes in prices received by domestic producers for their output.

  • In other words, it’s the wholesale price. The consumer price index is the retail price.

• The PPI had a 12 month increase of 9.7%. Basically, it cost manufactures 10% more to make their products today than it did a year ago.

• So, one of two things, or a combination thereof, happens.

  • They do nothing, not raising their wholesale prices – not likely.

  • They pass the entire increase to their customers – the retailers - the folks the everyday person buys from; perhaps.

  • They do a combination of the two – definitely.

• And that’s why the Consumer Price Index (CPI) has increased 7.5% over the previous 12 months. That’s the price you pay at the store.

  • BTW, that CPI number is also known by it’s more sinister pseudonym: inflation. And yes, inflation is at 7.5%. 

Retail Spending

• Now this is odd. In spite of the rapid increase in the CPI, consumer spending in January was up 3.8% over December.

• This is a strong gain and is attributable to:

  • Record hiring in January

  • Unemployment below 4%

  • Low layoffs

• I also think it was due to spending in November prior to Christmas, Omicron Prime arriving in December slowing spending, and in January, there is all this pent up spending energy.

• This is good news, folks. It’s a bizarre economy but somehow it keeps steaming along. Now if only Russia could keep its nose out of Ukraine. 

From the California section of the LA Times: 

• “Voters want to get tougher on crime, poll says”

  • That’s news??!! I guess they have to take a poll because they are too buried in their phones to talk to their neighbors.

• “Projected cost of bullet train up by $5 billion”

  • Is that $5 billion, up from, oh, $30 billion? Nope, it’s $5 billion, up from $105 billion, which is up from the original cost of $33 billion.

  • I’m no math major, but that is three times the original projection.

  • I guess California is business-friendly, as long as you are working on the bullet train.

• I have said this before, I’ll say it again, call your local representatives. Click here to learn more. 

A few more comments on the Olympics. 

• You can prepare thoroughly, but sometimes luck, good or bad, intercedes and determines the result. Mikaela Schiffrin had her share.

  • It was stunning as well as illustrative to see where the media mindset is, that there was actually a discussion of whether Schiffrin would finish the competition.

  • For the people that lead their sport, winning is everything; that’s why they perform, compete or play. If they don’t win the first time, they try again.

  • The fact that the media would plant the seed that Schiffrin would not complete her Olympic events is embarrassing.

• From “Miracle on Ice” (and the American hockey team this year represented us well), a defining line for me was “Thank you for giving me your very best”. Win or lose, that is what separates an Olympian from every other athlete; the ability to do their very best every day leading up to the event.

  • I think our team of 20 somethings gave us their very best; that’s what made it so fun to watch. I think I’d rather not have the NHL involved.

• Which leads me to ask, are you leading your employees to help them give “their very best”, day in and day out? 

Until Paris 2024, give your best every day and then see where you are in two years.  You will be amazed.