I’m coming out my cage and I’m doing just fine, you know I’ve got to be down because I want it all. I realize that my blogs have been a drag as I’ve point out the structural weaknesses of the economy underlying this melt-up phase of the market.
That’s the life of a financial planner. I’ve got to be scared when the world is elated and greedy when there’s blood in the streets. But it’s just the price I pay, destiny is calling me. So, for this blog I’m going to open up my eager eyes because I’m Mr. Brightside.
Here’s two things that make me happy about our current economic condition:
-Chevron Deference frees small businesses.
Every time Congress passes a law, that law has to be put into action in everyday life. Government agencies are in charge of taking these laws and creating 33 regulations to make them happen. In fact, due to the obscene amount of agency regulations you are probably breaking a law just reading this blog right now. I don’t know, I’m not a lawyer.
When one of these regulations gets challenged in court, the burden of proof rests with the smallfolk, not the unelected administrative kraken of the agency. This deference to the Stephen Hawking geniuses is called the Chevron Deference. The Jackson Lewis website explains it well: “Chevron deference has been a foundational precedent for more than 40 years. In that time, courts have issued thousands of decisions deferring to a broad swath of regulations issued by federal agencies. This deference has allowed agencies to shape the contours of employment laws with minimal judicial review.”
The reason this makes me happy is because I’m a small business owner. Small businesses are the economic engine that runs our economy. That’s right, basically, I’m a hero. When small businesses are bogged down filling out quarterly TPS reports for the DMV by midnight, they aren’t making widgets. If they miss their TPS report they are fined or imprisoned. When they challenge this death by red tape, they lose because the courts simply say, “Gubment knows best!” Well those days are over thanks to the Supreme Court ruling. Animal spirits are back.
-Technology makes life awesome.
I bought some medicine off the internet yesterday. The doctor gave me the prescription online. I filled it online and two days later I put down my donut and waddled off the couch to get the weight loss medication off my front porch. Then I sauntered back into my office for a Zoom meeting with a retiree client vacationing on the other side of the globe. Technological advancements in healthcare, communications, travel and leisure mean we are living at a time of unimaginable opportunity.
With all the systemic monetary issues facing investors and our economy, I believe Warren Buffet was right when he said, “Never bet against America.” Miracles are happening every day while we are distracted by the rising cost of bread and circus. This isn’t some chest-thumping, flag-waving pew pew pew bandwagon jumping. Americans have tasted economic progress and the joys of personal property. It’s addictive and it's motivating. All economics is simply a measurement of value and motivation.
That’s all for now, I don’t want you getting too excited. If you’d like more good news, schedule an appointment here.