Things are starting to look a little too much like Ayn Rand’s novel from 1957.  To be sure, there are major differences, and I think the book did not reflect reality in many ways.  But at the same time, we seem to be witnessing a slow collapse of civilization.

We haven’t seen the lights go out permanently in New York City, but it is interesting that New York City has seen one of the biggest declines over the last couple of years in the United States.  Between lockdowns and rising crime (which aren’t unrelated), New York City is no longer a highly desirable place to be, even for many who previously loved the place.

Even across the country, there are signs of decline.  It is strange to say because in some ways, our lives are better than ever.  It is a tale of two cities.  It is the best of times and the worst of times.  This is evident when you see a poor person in line at a food bank while talking on a cell phone.

I wrote recently about shortages and inflation.  This story continues.  People are quick to blame it on COVID and supply disruptions.  But it was the reaction to COVID, particularly lockdowns, that may be responsible for supply disruptions. However, it also goes way beyond this.

There is the reaction of the government to spend trillions of more dollars when it was already running massive deficits.  There is the reaction of the Federal Reserve to monetize the debt and create trillions of dollars out of thin air.  And when you include the fact that the government is bailing out cities and states for locking down, and also bailing out the people who were pushed into unemployment, it is a recipe for disaster.

We have heard about people making more from unemployment benefits than from what they were previously making at their job.  Even if someone is getting paid slightly less in unemployment, they may not return to work.  If you are getting, say, $2,500 per month in unemployment, and you can get a job for $2,800 per month, what is the motivation to work 40 hours per week for an extra $300?

In Atlas Shrugged, it was mostly the creators and entrepreneurs who went on strike.  In today’s world, it is the lower skilled people who are on strike, except that they are really just being paid to be on strike.  And while they are lower skilled, employers do need employees for simple tasks that cannot necessarily be done by robots.

I think one area of Atlas Shrugged that wasn’t realistic was that many businessmen were seen as good and noble.  That certainly doesn’t represent the world we live in today, especially when it comes to big business.  Unfortunately, there are probably more people in today’s world like James Taggart than Dagny Taggart or Francisco d’Anconia.

While entrepreneurs are still going strong in America, there is a major decline when it comes to big corporations.  The CEOs and corporate boards are more worried about being “woke” and diverse than they are about serving their customers.  They are also rightly worried about pleasing government officials and making sure that they get the right benefits, whether it is through direct subsidies or favorable regulations.

I feel like some businesses are more worried about whether I’m wearing a mask and if I’m vaccinated than actually making sure I get the products that I am looking for.

Due to a massive expansion of the Fed’s balance sheet, coupled with free money handed out to people, prices are going up at a fast pace.  There are shortages being reported of many materials and products, but widespread shortages do not typically occur unless there is government intervention.  In this case, the resolution to the shortages may just come in the form of even higher prices.

For companies looking to hire people, they will likely have to raise the wages being offered.  But this will only be done if it is feasible and profitable.  McDonald’s could get workers by paying $30 per hour, but then they would have to raise the price of their food in order to be profitable.  And that will only work if people are willing to pay the higher prices.

My Experiences

My wife has been trying to get through to Delta Airlines because one of her flights booked for this summer was changed.  It went from one layover to two layovers, and one of the layovers is only 30 minutes long, which makes it likely that she would miss her next flight.

The other day, she called Delta customer service, which is anything but.  The wait time was several hours.  She left her phone number for a call back.  This was at about 9:00 in the morning.  They said the call-back wait time was about 7 hours.  She ended up getting a call back at 3:00 in the morning.  I’m not sure which is worse – the fact that they called her at 3:00 in the morning, or that it took about 18 hours for someone to call her back.

Delta obviously has a major staffing problem right now.  I can’t imagine what someone would do who has a more urgent situation.  They are canceling flights, and their customer service is almost impossible to reach.  If it weren’t for the internet, the airline would basically have to shut down at this point.

I am hearing stories frequently about people not being able to find regular products.  I ordered a new oven for my kitchen back in April.  The wait time for delivery was over two weeks.  I have heard of other people ordering appliances and it taking even longer.  What happened to the old days when you could walk into a store and order an appliance for next-day delivery?

It is all of these little things happening around me.  There are signs of a major decline in civilization.  I am just thankful now when I go to the grocery store and they have everything I am looking for.

I am afraid that massive price inflation is coming.  Economically, the only thing worse than that is if the government tries to prevent massive price inflation by instituting price controls beyond the so-called price gouging laws already in existence.  If that happens, the current shortages will seem like nothing compared to what will happen.

I don’t think many creators and entrepreneurs are purposely going on strike.  But some of them were shut down in 2020, and they don’t want to go down that road again.  And the government, with its unreliable fiat currency, is making it difficult for the good and honest entrepreneurs to prosper.

We are starting to experience a decline like what was initially seen in Atlas Shrugged.  The problem is that Atlas hasn’t even shrugged yet.  The weight of the world isn’t just on the shoulders of entrepreneurs and businessmen.  It is on middle class America.  It may be middle class America that is about to shrug in order to deprive the power elite.