Cash is king in an economic crisis, we all know that. What’s the corollary? Everything starts to go underground. Unrecorded cash is untaxed cash, baby! Here’s some anecdotal proof.
Jim Rawles once mused that Orofino, the little hamlet that hosts Boomershoot, would have a fairly resilient economy during an extended financial crisis, because of the high percentage of residents receiving Federal paychecks. Unless the FedGov goes away, there’d be a continuous stream of money flowing into town keeping businesses alive.
Well, California’s impoverished Central Valley —Victor Davis Hanson country — is just like that, but worse because the money doesn’t come from jobs but from benefit payments. It’s definitely in Depression territory, (20-40% unemployment) but it’s still awash with cash from all the unemployment and welfare and disability checks. Over the holidays, I saw lots of evidence of this as we made our annual visit. There were new restaurants thriving — low-priced pizza joints, etc., but they were new, which means someone projected a good P&L.
(Why’s Dr. Hanson seeing increased crime? Because of all the folks who are unemployed but are not scrambling for a job, any job — and who therefore have nothing to do. Idle hands make the Devil’s work….)
Restaurants are also great places to launder cash that you don’t want taxed.
What brought that to mind is that I had a chance to catch up with the California Disability King, and if you don’t remember him you really want to go ahead and click that link. I’ll wait.
You’re back. Blood pressure through the roof? Teeth being gnashed? Good. There’s more.
So he spent his lump-sum amount already, as Rivrdog had foreseen in the comments to that earlier post. Bought brand new cars for his immediate family, and loaned some money to relatives. He is a genuinely kind fellow, and he was very generous with his new-found largesse. And now that’s all gone, he’s still getting his nearly $3k in monthly payments for doing nothing. Life’s good, right?
Well, as you might expect from someone the State of California considers permanently disabled due to chronic meth use, he was going-stir-crazy just sitting around the house. As he explained to me, he wanted to be “productive.” Boy is he.
See, he became a suburban farmer.














