Who here is worried about deflation?

[propita]

Well, I figure there are some jobs that remain okay. Hubby's a pharmacist. One way or another, people need their meds--or they get sick and/or die.

When people can't afford to buy medications (i.e. unemployment soars) that's exactly what happens. People get sick AND die. No one way or another, they just stop taking their drugs. Most people will pay the rent and utilities before they pay for drugs.

How many fewer customers would it take before your hubby was looking for a job somewhere else?

Well, he gets calls and mailings weekly to do per diem work. They're still giving bonuses to snag a pharmacist here. CA law requires that pharmacists dispense the meds--so if workload went down drastically, the techs would be cut first (cause a low workload doesn't require the help of a tech, but the pharmacist is still needed on site by state law).

I know laws can be changed, but while there are some excellent pharmacy techs out there, most of them don't have the background to truly do the pharmacist's job on counseling--and being legally liable.

While older pharmacists were grandfathered in with BS's, now a Doctor of Pharmacy degree is required. So there's just not enough.

Me? I'm finishing law school--hoping to be a research attorney. I'm told bad economic times can be good for attorneys. People still file suits and get arrested--and all that needs to be researched to "win."

 

[Mallory]

Wow! California law is pretty strict. Here you only have to have a degree or certificate from an ACPE accredited institution and pass the NAPLEX and MPJE exams. There's nothing in Oregon law that I could find that requires a doctorate in pharmacology, although I suppose that would help immensely.

 

[Mr Awe]

I'm not worried about deflation. I'm more worried about the combination of inflation, high unemployment and soaring interest rates and/or tight credit.

Stagflation.

Sometimes a more simple explanation works best JP.

Particularly when "stagflation" is not the proper term. Stagflation refers specifically to a combination of a stagnant economy and inflation. Usually a stagnant economy produces deflation. So, a cutesy term was created back in the 70s when, surprise, you got inflation along with a stagnant economy, due to high energy prices.

Today, we're not worried about inflation at all. So, it's inappropriate to talk about "stagflation." Deflation is a possibility. Deflation is really a sideffect of a shrinking economy which is the real problem. So, be afraid of the shrinking economy.

People spend less out of fear so retailers cut prices and manufacturers cut production. This means less sales, less production. This in turn causes more layoffs. More unemployed means more mortgage/loan defaults, fewer people with money, and the rest are more afraid to spend. This produces less spending overall which starts the cycle over again with price cuts!

Mr Awe

 

[propita]

Well, I figure there are some jobs that remain okay. Hubby's a pharmacist. One way or another, people need their meds--or they get sick and/or die.

When people can't afford to buy medications (i.e. unemployment soars) that's exactly what happens. People get sick AND die. No one way or another, they just stop taking their drugs. Most people will pay the rent and utilities before they pay for drugs.

How many fewer customers would it take before your hubby was looking for a job somewhere else?

Well, I asked him that. They're are 3 stores of this chain in town. That's it for at least a 50 mile radius. I said that, if people have no money, they won't need to have 3 open--and 1 or 2 might close. He said that as his is the most productive and most centrally located, it would likely stay open--and they aren't likely to let go of pharmacists.

But I asked him what if half of all stores in the Fresno area that have pharmacies close (or at least the pharmacies in them close)--wouldn't that make a lot more available and then would there still be a lack of pharmacists? He counted it up and said that it might actually be at just the right number to eliminate overtime hours.

At worst, he wouldn't get a bonus at the end of the year. He gives a chunk of that to his parttime pharmacists, techs, and clerks for the holidays anyway. He's not required to, as it's his money not a block of money for all to share, he just thinks it's the right thing to do.

So I figure we're okay. We're not spendthrifts or anything. We have savings--and it sitting with little/no interest is at least not losing money, unlike our 401k's.

 

[Mr Awe]

^^^ Don't worry too much. Yeah, a lot of people will lose their jobs but most people won't lose their jobs. It can be stressful but the economy will improve. It's all the more incentive for him to keep working hard and staying productive.

Mr Awe

 

[RevDMV]

Fresno's not terribly expensive as far a CA towns go either.

Here in the automotive industry people and freaking out...even Toyota is really getting hit hard. I hope folks start feeling happy after Jan 20th.