Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts

Monday, June 23, 2014

Storage Wars: The Evolution of Excess

When A&E premiered the first airing of Storage Wars in December 2010, I'll bet the producers thought they would have a smash hit. And they do. The show is now in its fifth season with plans for a sixth, hosting some of the old faces and a few new ones. Do you like the show and, if so, who is your favorite buyer?

Cast of Real Characters

The oldest member of the show, and my favorite, is Barry Weiss, known as "The Collector". He is portrayed as perhaps having the least amount of money to work with, but he's willing to take chances. He searches for that one oddity that will at least break him even. Brandi and Jarrod bring their unusual relationship to the show as "The Young Guns". They always seem like they're on the verge of ending their partnership with continuous disagreements and Jarrod's signature cross-armed stance.

The characters who have made a real impact on the show are Darrell Sheets and Dave Hester. Darrell, "The Gambler", recently brought his son Brandon into the picture and their family is now notorious for two things. Darrel is responsible for the biggest payoff in the show's history. A locker that he purchased for $3,600 ended up containing several Peter Gutierrez paintings Darrell sold for $300,000. Also, inside another purchased locker, the body of a woman was found wrapped in plastic. The previous male owner had killed his wife and subsequently disposed of her body. Wow....



Dave Hester, "The Mogul", made himself into the man you love to hate. With his annoying "Yuuup" and his big white trucks splayed with his name in big letters, he always made a scene. And if all of that flash of ego didn't rub you raw, then his crew of 3 or 4 guys spilling out of the trucks like worker ants should have finished you off. His story, though, ends in the courtroom. Dave has accused the show's production company, Original, of staging fake lockers and providing money for bidders. He was fired from the show and his court battle rages on today.

The crew of Storage Wars represents what can happen in a world of excess. The evolution of consumerism has driven our society to be filled with metal buildings housing a bunch of valuables that have lost their value to its owner. True, there is money to be made through these auctions, since another person's trash is another's treasure. However, I believe that many Americans who own these units have lost sight of some of the core values of life. Not intentionally, though. They just need to be reminded of an old aphorism that dates back nearly 100 years and introduced to the evolution of a new way of thinking.

Stepping Back in Time

The odds that someone reading this article will remember the Great Depression is rather slim, although I am hopeful that the babies from the 20's and 30's are still able to share their stories. With this in mind, there is a lot of information out there about this tough era and what it took to survive. Judy Busk has written an essay for a website called New Deal Network where she recalls the impact the Depression had on her family.
       
          "Gifts were carefully opened, hands delicately loosening the tape so the wrap could be neatly removed and folded to be used again. A ball of string graced our kitchen cupboard; it was made up of hundreds of shorter pieces tied together...Cotton and wool socks were stretched over a worn out light bulb and darned to prolong their use....Printed chicken feed sacks became skirts, flour sacks became underwear."

It was during this era that the phrase, "Use it up, wear it out, make it do or do without", became a household mantra. Although this saying was popularized during World War II, it does have its origins dating back to 1933. Commodities were extremely scarce and so anything at all that was owned by a family had to be stretched to its fullest use and beyond. Judy recounts the story of her mother getting an orange in her Christmas stocking and feeling that it was a deeply treasured gift. In fact, many Christmases didn't have gifts at all. A white-frosted cake would have been the only celebratory piece. It is so neat to read and realize that people appreciated everything, even the smallest of things, that these days we can take for granted. Over time we have lost sight of the lessons of this era and have become slowly blinded into becoming the consumers we are today.

The Rise of Consumerism


After the resolution of World War II, the American economy began its gradual turn around into the wealthy society that it is today. During the 1950's and 60's the concept of "keeping up with the Joneses" became the new trend of American life. It has served as a foundation for the surge of consumerism in this country. Americans are no longer considered to be citizens, but rather, consumers. Purchasing power is what drives our overall economy, however, in the never-ending pursuit of material things, our lives have become cluttered. We buy bigger houses so we can put more stuff in them. Many garages, which were created to house vehicles, now serve as storage units attached to homes. In some surprising ways we too have become the hoarders you can see on popular television. Except in our case, what we are doing is perfectly acceptable by the status quo because the more you own, the wealthier you are. Many times this "wealth" has to be stored somewhere else. There just isn't any more room. It is from this demand that the evolution of the storage units has risen and now permeates our landscape.

The Storage Solution

The history of self storage units has a rather interesting past. According to Ezine articles, the founder of the Self Storage Association, Buz Victor, discovered on a trip to China "that people had been keeping their personal belongings in clay pots for over 6,000 years". The concept took hold much later in Britain, but it really was Buz's entrepreneurial idea that snowballed the idea back in the states. The first facility was established in Odessa, Texas in the 1960's by Russ Williams. He was an avid fisherman and needed somewhere to keep his boats and equipment. He went and purchased several apartments and garages to suit his purpose and because he felt other folks could make use of this type of storage. The units basically sold themselves.

The idea of storage units is a good one with good intentions. It is practically impossible for some people to keep large boats, trailers, RVs, and so forth on their own properties. Our soldiers in the military, too, need somewhere to keep their belongings while off serving our country. In a culture of excess, however, this idea has blossomed into a near epidemic. Rather than get rid of our stuff, we choose to store them out of sight, which eventually means out of mind. Folks are either forgetting to pay the rental bill or realize they simply cannot afford the fees. And this is how the Storage Wars concept has turned into a multi-million dollar industry.

Some Facts in a Nutshell



  • There are more than 48,500 storage units nationwide.
  • The self storage industry in the United States generated more than $24 billion in annual revenues (2013 - estimate). The industry has been the fastest growing segment of the commercial real estate over the last 40 years and has been considered by Wall Street analysts to be "recession resistant" based on its performance since the economic recession of September, 2008.
  • The industry pays more than $3.2 billion each year in local and state property taxes.
  • There is 78 square miles of available storage space nationwide, which would provide every  household in this nation access to 21 square feet. 
  • Storage units have become so popular that many are managed by third-party companies. 

So What Can We Learn?

I think fifteen years into the 21st century most Americans understand that we are a nation of excess. The Internet has given all of us the opportunity to view websites, blogs, and publications that in many ways have exhausted this subject and the many concepts tied into personal finance. At this point you have either decided to change or keep things going they way they always have existed. The real wealth of family and basic necessities is becoming more apparent as we develop into a tightly-knit global community. I see an environment of giving freely to others on Twitter as a way of developing relationships. It is refreshing to be a part of a community that seems to be, for the most part, interested in my well-being and providing help and guidance with minimal strings. These things represent the real value of life, not junk piled up in a storage unit.

Ultimately, the idea of living intentionally is perhaps the best way of breaking free from the bonds of consumerism. This concept was first introduced to me by my wife, and at first I was a little resistant to the idea. Tsh Oxenreider has published two books on simplifying your life and living intentionally. In her first book she really hits the nail on the head with her ideas that purging your house of "stuff" is actually a very liberating experience. I, like many folks, have issues with letting go of things. However, as our family has let go of many things we thought we wanted, we realize that those things were just taking up space unnecessarily. We were spending too much valuable time cleaning up all of the "stuff" that we truly have been able to do without. Let it go already.

Bringing back the Great Depression and World War II aphorism of "Use it up, wear it out, make it do or do without" is a cycle we most certainly need to repeat in America today. In doing so we are able to return back to the roots of filling that inner void - peace with ourselves, our community, and God.

Works Cited

http://www.hollywoodreporter.com/thr-esq/a-e-wins-first-round-428079

http:// ezinearticles.com/?The-History-of-Self-Storage&id=1590718

http://newdeal.feri.org/sevier/essays/frugality.htm

http://www.selfstorage.org/ssa/Content/NavigationMenu/AboutSSA/Factsheet/default.htm

http://www.slate.com/articles/arts/culturebox/2005/07/selfstorage_nation.html

Saturday, April 12, 2014

American Evolution: Technology Replacing Humans

I recently read an article by a local newspaper columnist who brought to my attention a very obvious issue I really hadn't given any thought. He made me think of how realistic it could be, in the immediate future, that many of us workers will be replaced by technology. Although technology is a wonderful thing (when it works, of course), it does have its down sides. As an example, our kids today are usually completely absorbed into either social media or the wonderfully realistic computer games. Their generation will be the guinea pigs, unfortunately, for what the long term effects of technology has on the brain and in social development. I think that we are already beginning to see those effects with the hyper increase of ADHD and employees being able to do their jobs effectively, but not being able to maintain their jobs because they cannot get along with co-workers. But that's another story....

The columnist had recently been given a story from Bloomberg News that stated "technology will eliminate approximately 40 percent of our jobs". That is quite a staggering number and so I decided to do a little research to see what I could find out and make some observations.

Job Loss Qualifications

It would seem that any job which can be defined as routine is eligible to be replaced by robots, computers or some sort of software that can do a better job and be far more cheaper than human labor. What jobs qualify as routine? Here is a very brief list and the estimated number of people working in each field:
     
       Bank workers (we already have online banking and check scanning)               1,000,000
       Secretaries                                                                                                        1,100,000
       Real Estate Agents/Brokers                                                                                 600,000
       Truck Drivers                                                                                                    5,700,000
       Travel Agents                                                                                                        82,000
       Cashiers                                                                                                           3,300,000
       Librarians (note: you must have entry level master's degree)*                            148,400
       Meter readers                                                                                                        40,000
       Taxi Drivers/Chauffeurs                                                                                         36,200
                                                                                                                              12,006,600 

       *"North Carolina State University this month introduced a high-tech library where robots - 'bookBots - retrieve books when students request them, instead of humans. The library's 1.5 million books are no longer displayed on shelves; they're kept in 18,000 metal bins that require one-ninth the space."

As you can see over 12 million people could be without a job in the next decade or two, and this list does not come anywhere near showing the total jobs affected. "The AP found that almost all the jobs disappearing are in industries that pay middle-class wages, ranging from $38,000 to $68,000. [These are] [j]obs that form the backbone of the middle class in countries in Europe, North America and Asia."

"In the United States, half of the 7.5 million jobs lost during the Great Recession [were] paid middle-class wages..." This is an interesting statistic when we consider that it was the unethical business practices of the wealthier factions in this country who were responsible for our plunge into a recession. I would also assert that the recession felt by the middle class became a depression for the lower classes. Food pantries and shelters began seeing more and more new faces as families were losing their ability to sustain themselves. Many folks began implementing ideas that were used during the 1930's - such as using something until it is absolutely worn out. Thrift shops and supermarket stores like Aldi's as well have seen record numbers of shoppers over the past several years.

Fortunately for the poorer class, there really is no worry about being replaced by technology since their jobs are low-paying by nature and it would most likely cost more money to implement robots to function as janitors, housemaids or food service workers. Or perhaps, in time, they too might be replaced as robots become more affordable. Who knows?

Benefits of Technology

Now I don't want to just portray the gloom and doom scenario as the only outcome of technological advancement. It is certainly not this way. There are many wonderful aspects of having a wireless world.
Information exchanged is now at unprecedented levels. Literally any piece of knowledge can be retrieved or sent to anywhere in the world. Those of us who write blogs can share our minds and experiences with people in Malaysia, France, Russia, Gibraltar...the list goes on and on.
The medical field is making huge advances with information gathering done with scanners which look very similar to those used in department stores. If you close your eyes and hear the beep, you might be able to envision yourself as a domestic product being purchased. :) By doing away with the bed charts, a medical professional can access the most current patient information anywhere in the world. In the operating room there is new robotic equipment like the Da Vinci which can help a doctor perform a very low-invasive hysterectomy with great precision and with better eyes than humans possess. Even Hans Wiemann has upgraded to using robots for hair implementation for individuals suffering from hair loss.

In the realm of education, this country needs every possible means of improving the quality of our programs. We have been falling behind other countries very quickly and for quite some time. Technology is now being brought into the preschool classroom in an attempt to better educate and prepare our children for our very competitive world. Smart boards have been implemented in the middle schools and I was a bit shocked when my 10-year-old daughter told me that she not only knows how to put together a Power Point presentation, but she is very comfortable in making them because it is now common curriculum.

Growth Creates Obstacles

As amazing as technology can be there are always subversive members of our society or perhaps in the world who make themselves into bad apples. On Tuesday this week The New York Times published an article written by Nicole Perlroth which reveals a sort of "New Age" of hacking through third party systems.
   
     "Unable to breach the computer network at a big oil company, hackers infected with malware the online menu of a Chinese restaurant that was popular with employees. When the workers browsed the menu, they inadvertently downloaded the code that gave the attackers a foothold in the business's vast computer network."

Locally, "[h]ackers in the recent Target payment card breach gained access to the retailer's records through its heating and cooling system." How crazy it is that attackers can access vital computer systems through very simple channels without anyone even noticing? A hacker's Gold Rush, I'm sure.

After reading this article I began to think about how dependent Americans have become on their technology. Most information used or exchanged is not saved in hard copy form. Banking and financial information is quickly becoming totally digital as we attempt to streamline our lives and eliminate cluttering paperwork. Book stores are going out of business at an alarming rate because of Kindles and other media sources. Even books themselves are being eradicated and converted into a digital framework that can be "shelved" on a much smaller scale.

Just a Thought...


Thinking back on a terrible moment in our history, we can reflect on the events of 9/11 and the impact that it had on America and the world. Vulnerability is a very sensitive issue and the attack on the World Trade Towers left us in this state of being. I am concerned that our new dependence on technology could leave us being even more vulnerable than on that September day. If terrorists could implement some sort of third party system and breach our main computer systems, they could essentially shut this country down. Could it be as simple as a restaurant menu, a purchase on Amazon, or a communication on Twitter? We experienced a large financial disruption with the attack 13 years ago, so just think about how much damage could be done if an extremist group was able to gain access to all of our banking systems, corporate networks, and other crucial frameworks that have become the backbone for daily function in America. Remember, our soldiers found several computers linked to a network in the cave where Bin Laden was found. Those who wish to do us harm are very privy to our technological dependencies. In a world where robots and software are replacing humans for the causes of efficiency and cost savings, so too exists the possibility that we can be crushed far worse than the attacks in 2001. Americans have always endured though, so we can figure it out.

Works Cited

http://www.nydailynews.com/news/national/smart-machines-job-article-1.1246522

McClellan, Bill. "Economy on Autopilot Raises Scary Questions." St, Louis Post-Dispatch. Wednesday      March 26, 2014. Page A13.

Perlroth, Nicole. "Hackers Luring in Vents and Soda Machines." The New York Times. Tuesday, April 8,     2014. Front page.