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PERRIN LOVETT

~ Deo Vindice

PERRIN LOVETT

Tag Archives: economics

The Austrian Economics Approach to Bettering American Healthcare

28 Wednesday Jun 2017

Posted by perrinlovett in Legal/Political Columns, News and Notes

≈ 1 Comment

Tags

America, Austrian Economics, economics, freedom, health, ObamaCare

Yesterday, while watching the whole-lot-o-nothing of the GOP attempt to … do whatever with healthcare, several things occurred to me. First, these people are pathetic idiots. Second, they, largely, have no concept of good health or medical needs. Then I concluded, again, that their slow, torturous legal wrangling isn’t concerned with keeping anyone healthy at all; it’s a bail out or subsidy program for the insurance cartel industry and the corporate medical cabal professions.

Hans-Hermann Hoppe must have had similar thoughts lately. He posted a proposed solution to the dread problems of healthcare in America for Mises (here, via LRC); it’s an essay of sorts from 1993 and The Free Market. Yes, it’s all free market based – real freedom in the really free markets.

It’s true that the US health-care system is a mess, but this demonstrates not market but government failure. To cure the problem requires not different or more government regulations and bureaucracies, as self-serving politicians want us to believe, but the elimination of all existing government controls.

It’s time to get serious about health-care reform. Tax credits, vouchers, and privatization will go a long way toward decentralizing the system and removing unnecessary burdens from business. But four additional steps must also be taken:

Only these four steps, although drastic, will restore a fully free market in medical provision. Until they are adopted, the industry will have serious problems, and so will we, its consumers.

Here’s a summary of his four points:

1. Kill the licensing racket. It does nothing except add layers of complexity and expense.

2. Free the market for procedures, drugs, and devices. No more FDA.

3. Completely deregulate the health-insurance business. Allow the invisible hand to operate efficiently.

4. Eliminate Medicare and Medicaid. You subsidize what you want more of; pay for more sickness, get more sickness. And more, waste, expense, fraud, etc.

These are pure Austrian principles. They are not that radical. The implementation would represent a return to the traditional American way of healthcare, departed not so very long ago – the days when a hospital stay cost hundreds, not tens of thousands of dollars. It would mean addressing the root problems rather than a band-aid for the superficial surface. It means common sense.

medical-logo

Ferre Bee Keeper.

Those are the reasons it would work – just as it did for most of American history (150-ish years) and almost all of human history (10,000 years, maybe). These are also the same reasons why the Congress and the industry will not go along. They don’t want to fix problems, especially problems of their own making. That would rather point out their useless, evil existence.

So, it’s not going to happen – any time soon or in the remains of the USA. Just know that the solutions are available.

A new poll indicates Americans, of all political stripes have very low levels of trust in the medical industry, government, and most major institutions. I’m planning to cover that, in-depth, a little later today.

*Perrin Lovett coming soon to Patreon. Please stand by to support!

Janet Yellen Channels Her Inner Pinocchio

27 Tuesday Jun 2017

Posted by perrinlovett in News and Notes

≈ Comments Off on Janet Yellen Channels Her Inner Pinocchio

Tags

banks, economics, economy, Federal Reserve, Janet Yellen, lies, recession

This stuff writes itself.

Fed Chair Janet Yellen said Tuesday that banks are “very much stronger” and another financial crisis is unlikely anytime soon.

Speaking during an exchange in London with British Academy President Lord Nicholas Stern, the central bank chief said the Fed has learned lessons from the financial crisis and has brought stability to the banking system.

…

She also made a bold prediction: that another financial crisis the likes of the one that exploded in 2008 was not likely “in our lifetime.” The crisis, which erupted in September 2008 with the implosion of Lehman Brothers but had been stewing for years, would have been “worse than the Great Depression” without the Fed’s intervention, Yellen said.

 

 

I think I know what “no crisis like 2008 in our lifetime” means. The poor woman must be terminally ill. That or maybe she/they know the next one will be worse than 2008.

20140129Jay_image002

Kitco.

“Had been stewing for years….” Maybe that’s why, as the article later pointed out, it caught the Fed completely off guard.

I do like her giving the Fed credit for preventing the Greater Depression. Rich.

The Fed, if you recall actual history, prolonged a downturn, a recession, into the Great Depression of the 1930’s. They have experience wrecking the economy. And it’s really too soon to tell about the Greater Depression, although I’ve seen stats from two economists that show the 2008 crisis was every bit as bad as that of the 30’s and that we have yet to recover from it.

Wait! Now I know what she means. She knows the 2008 crisis never really ended. Therefore its continuation this year or next coupled with a new worsening crash technically won’t be another crisis – it’ll be the same one.

That or she’s sick.

Thoughts and prayers.

 

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The Rats Begin to Rhetorically Abandon the Ship

27 Tuesday Jun 2017

Posted by perrinlovett in News and Notes

≈ 1 Comment

Tags

banksters, depression, Economic collapse, economics, economy, recession, society

It always starts with a change of tone. Somewhere a guilty admission creeps in as the creeps creep out.

Then: “Things are great! Never better.”

Next: “Recovery in full swing. Economy strong. Never stronger.”

And: “Strong enough to weather another recession.”

Finally: “Global recession coming with a vengeance.”

A new financial crisis is brewing in the emerging economies and it could hit “with a vengeance”, an influential group of central bankers has warned.

Emerging markets such as China are showing the same signs that their economies are overheating as the US and the UK demonstrated before the financial crisis of 2007-08, according to the annual report of the Bank for International Settlements (BIS).

Claudio Borio, the head of the BIS monetary and economic department, said a new recession could come “with a vengeance” and “the end may come to resemble more closely a financial boom gone wrong”.

China sees surprise boost to exports but concerns remain over economy
The BIS, which is sometimes known as the central bank for central banks and counts Bank of England Governor Mark Carney among its members, warned of trouble ahead for the world economy.

It predicted that central banks would be forced to raise interest rates after years of record lows in order to combat inflation which will “smother” growth.

If things are so great, better, and strong, why the vengeance? And, no, it won’t be limited to China and developing nations; the “global” part means everyone.

People from CNBC to the layman on the street conflate the stock market with the economy. It’s a part but not the whole – more of a barometer. Sensing the storm, Charles Hugh Smith proposes a crash scenario (with possible profit opportunities):

After 8+ years of phenomenal gains, it’s pretty obvious the global stock market rally is overdue for a credit-cycle downturn, and many research services of Wall Street heavyweights are sounding the alarm about the auto industry’s slump, the slowing of new credit and other fundamental indicators that a recession is becoming more likely.

Few have taken the risk of projecting a date for the crash, this gent being a gutsy outlier: Hedge Fund CIO Sets The Day When The Next Crash Begins.

Next February is a good guess, as recessions and market downturns tend to lag the credit market by about 9 months.

My own scenario is based not on cycles or technicals or fundamentals, but on the psychology of the topping process, which tends to follow this basic script:

…

All economies move in cycles. They always have and always will. Any period of growth or stability, real or imagined, is always followed by a period of correction, sometimes painful. We’re now due, statistically. Maybe overdue.

This time around may be different, of a rarer breed. Like economies, societies move in cycles. See Plato’s essays. America and most of the West have undergone a sea change the past generation. They’re far less Western than they were. And that is brewing some major systemic problems, problems that are likely to be displayed prominently during the coming downturn.

Today Pat Buchanan offers a preview of what we may all look forward to: the examples of Puerto Rico and Illinois.

Across the West, social welfare states are threatened by falling revenues, taxpayer flight, rising debt as a share of GDP, sinking bond ratings and proliferating defaults.

Record high social welfare spending is among the reasons that Western nations skimp on defense. Even the Americans, who spent 9 percent of GDP on defense under President Kennedy and 6 percent under President Reagan, are now well below that, though U.S. security commitments are as great as they were in the Cold War.

Among NATO nations, the U.S. is among the least socialist, with less than 40 percent of GDP consumed by government at all levels. France, with 57 percent of GDP siphoned off, is at the opposite pole.

Yet even here in America we no longer grow at 4 percent a year, or even 3 percent. We seem to be nearing a point of government consumption beyond the capacity of the private sector to provide the necessary funds.

Some Democrats are discovering there are limits to how much the government can consume of the nation’s wealth without adversely affecting their own fortunes. And in the Obamacare debate this week, Republicans are running head-on into the reality that clawing back social welfare benefits already voted may be political suicide.

Patrick BuchananHas democratic socialism passed its apogee?

Native-born populations in the West are aging, shrinking and dying, not reproducing themselves. The cost of pensions and health care for the elderly is inexorably going up. Immigration into the West, almost entirely from the Third World, is bringing in peoples who, on balance, take more in social welfare than they pay in taxes.

Deficits and national debts as a share of GDP are rising. Almost nowhere does one see the old robust growth rates returning. And the infrastructure of the West – roads, bridges, tunnels, ports, airports, subways, train tracks – continues to crumble for lack of investment.

The days of interstate highway systems and moon shots seem to be behind us. Are Puerto Rico and Illinois the harbingers of what is to come?

Probably. Washington can bail out Illinois today. Tomorrow, who will bail out Washington? And/or Beijing? London?

On the football field, quarters of poor execution and foolish play have a consequence: the game is lost. A similar phenomenon happens with cultures and economies.

Look at the rats and see them preparing to flee. Take a wider look at the ship and see it listing. Look at nothing, to include that damned glowing screen on the wall, and go under.

Might be time to make some plans.

nimbus-image-1497984288874 - Edited

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Uncertainty, the Economic New Normal

26 Monday Jun 2017

Posted by perrinlovett in News and Notes

≈ Comments Off on Uncertainty, the Economic New Normal

Tags

America, economics, economy

Boom. Boom. Boom. To hear the CNBC talking heads tell it, we’ve entered a period of permanent growth and prosperity. Unemployment drops as the DOW soars. Why, them does the average American sense something is amiss, subconsciously, even as they are supposedly exuberant about all things money?

Because it is amiss and badly. The people at CNBC are paid well to enthusiastically say “buy!” every day; it’s their business to whoop for business. The employment numbers are rigged – a mathematical alchemy that has constantly evolved as needed (to look good) since at least the 1970’s. The stock market numbers, record after record included, are similarly rigged. Vox has coined the term “Kraonomics” to describe it: a system built entirely on unsustainable debt.

It can’t be sustained and won’t be.

A strange thing seems to be happening to the U.S. economy. On surveys, businesspeople and consumers say the future looks bright. But recent economic activity hasn’t appeared very robust.

Andrew Ross Sorkin of the New York Times noted this in a recent article about mergers and acquisitions. A number of surveys have been reporting that chief executive officers are highly optimistic. For example, the website Chief Executive and the Wall Street Journal/Vistage Small Business CEO Survey both report a surge in CEO confidence since the 2016 election, while Business Roundtable’s CEO Economic Outlook Survey finds an average level of confidence.

But as Sorkin reports, M&A activity is at its lowest level since 2013, and has fallen 40 percent in the past two years. Share buybacks have also slowed. Those “hard” numbers indicate that whatever CEOs are saying on paper, they aren’t taking actions that signal confidence in the future of their businesses. Capacity usage, which fell slightly in May, is another indicator of that true business sentiment is far from giddy.

Holden Caulfield had the word for this predicament, which he used constantly (usually for people): “phony.”

There’s a reason why real economists, independents, keep saying things are headed off a cliff. It’s what happens when you base a global economy on imaginary fake money in a computer. If the underlying green isn’t real, the performance and optimism can’t be either.

market-crash

When Have We Heard This Before?

22 Thursday Jun 2017

Posted by perrinlovett in News and Notes

≈ 4 Comments

Tags

banksters, Economic collapse, economics, economy, Federal Reserve

They never learn.

Today:

All of the 34 largest U.S. banks are fortified enough to withstand a severe U.S. and global recession and continue lending, the Federal Reserve said Thursday.

…

“This year’s results show that, even during a severe recession, our large banks would remain well capitalized,” Fed Gov. Jerome Powell said in a statement. “This would allow them to lend throughout the economic cycle, and support households and businesses when times are tough.”

Feb., 2008, even as Lehman teetered and the ripples spread:

Bernanke said he believes major banks and Wall Street firms are likely to take additional earnings hits tied to bad investments in subprime mortgages. That could lead to tighter lending standards and contribute to an overall slowdown.

“More expensive and less available credit seems likely to continue to be a source of restraint on economic growth,” Bernanke said.

But he added he’s not worried about bank failures because he thinks banks entered the current downturn with sufficient capital and have been able to raise additional funds.

The good news is that they have learned a little – they now couch their stupidity in terms of a severe recession. The bad news is … give it a few months…

the fail boat

Today’s News NJ.

More on how Bernanke and Co. were so laughably wrong, HERE.

Really not a laughing matter.

Four More Good Reasons to Reconsider the College Experience

16 Friday Jun 2017

Posted by perrinlovett in Other Columns

≈ 1 Comment

Tags

academic, America, college, economics, education, future

And anymore, it’s an experience more than an education. I suppose the following does not apply to STEMs (maybe and for now), many professional tracks, and broad-spectrum education sought out by those with both the aptitude and the existing financial abilities. This is for the other 90% of students and potential applicants. It is time to think long and hard about paying (financing) a fortune for four, five, or ten years of increasingly useless drivel.

From Jonathan Newman at Mises:

Students are running out of reasons to pursue higher education. Here are four trends documented in recent articles:

[1] Graduates have little to no improvement in critical thinking skills

The Wall Street Journal reported on the troubling results of the College Learning Assessment Plus test (CLA+), administered in over 200 colleges across the US.

According to the WSJ, “At more than half of schools, at least a third of seniors were unable to make a cohesive argument, assess the quality of evidence in a document or interpret data in a table”. The outcomes were the worst in large, flagship schools: “At some of the most prestigious flagship universities, test results indicate the average graduate shows little or no improvement in critical thinking over four years.”

There is extensive literature on two mechanisms by which college graduates earn higher wages: actually learning new skills or by merely holding a degree for the world to see (signaling). The CLA+ results indicate that many students aren’t really learning valuable skills in college.

As these graduates enter the workforce and reveal that they do not have the required skills to excel in their jobs, employers are beginning to discount the degree signal as well. Google, for example, doesn’t care if potential hires have a college degree. They look past academic credentials for other characteristics that better predict job performance.

[2] Shouting matches have invaded campuses across the country [SJW mayhem]

It seems that developing critical thinking skills has taken a backseat to shouting matches in many US colleges. At Evergreen State College in Washington, student protests have hijacked classrooms and administration. Protesters took over the administration offices last month, and have disrupted classes as well. It has come to the point where enrollment has fallen so dramatically that government funding is now on the line.

The chaos at Evergreen resulted in “anonymous threats of mass murder, resulting in the campus being closed for three days.” One wonders if some of these students are just trying to get out of class work and studying by staging a campus takeover in the name of identity politics and thinly-veiled racism.

The shouting match epidemic hit Auburn University last semester when certain alt-right and Antifa groups (who are more similar than either side would admit) came from out of town to stir up trouble. Neither outside group offered anything of substance for discourse, just empty platitudes and shouting. I was happy to see that the general response from Auburn students was to mock both sides or to ignore the event altogether. Perhaps the Auburn Young Americans for Liberty group chose the best course of action: hosting a concert elsewhere on campus to pull attention and attendance away from both groups of loud but empty-headed out-of-towners. Of the students who chose not to ignore the event, my favorite Auburn student response was a guy dressed as a carrot holding a sign that read, “I Don’t CARROT ALL About Your Outrage.”

The other two reasons are:

[3] More efficient alternatives;

[4] Tuitions are Up; Incomes are Down.

All of these are telling and alarming. Any one by itself would be worrisome. For me, perhaps the worst is the lack of learning – especially considering the ridiculous costs imposed.

30406e_4d1f8db3c2814cb5bbbfb8e634ee989e-mv2

Moon Prep.

What is the point of spending the better part of a decade (I think I was the last four-year degree man to actually finish in four years) at school, when there are no measurable increases in knowledge or critical thinking? To go through this, mortgaging ten to thirty years of one’s life in debt without the prospect of decent employment is ludicrous.

These are but four reasons. Look around and I’ll bet you can come up with another four – or forty. Google: “James Altucher college” for some extreme insight into better options.

If you’re in college or thinking about it, or if you know someone who is: seriously consider the many and increasing downsides. One can watch football and drink beer for a lot less and without the increased stress.

Jim Rogers Predicts Massive Depression Later This Year

10 Saturday Jun 2017

Posted by perrinlovett in News and Notes

≈ Comments Off on Jim Rogers Predicts Massive Depression Later This Year

Tags

collapse, depression, economics, economy, money

Tech stocks took a little beating yesterday, sending the NASDAQ down slightly, even as the DOW was up. Such fluctuations usually cause a murmur. However the day-to-day roller coaster is really a poor indicator of overall health in the markets. A deeper look reveals a very ugly truth. Our entire economy is built on nothing but a series of failing bubbles. It’s only a matter of time before a chain-reaction ushers in a correction and chaos.

Jim Rogers, who called the Great Recession five years in advance and who took timely evasive actions in 2006, says the end of this year, 2017, or early 2018, will herald the next downturn. And he says it will be the worst in our lifetimes.

Blodget: And how big a crash could we be looking at?

Rogers: It’s going to be the worst in your lifetime.

Blodget: I’ve had some pretty big ones in my lifetime.

Rogers: It’s going to be the biggest in my lifetime, and I’m older than you. No, it’s going to be serious stuff.

We’ve had financial problems in America — let’s use America — every four to seven years, since the beginning of the republic. Well, it’s been over eight since the last one.

This is the longest or second-longest in recorded history, so it’s coming. And the next time it comes — you know, in 2008, we had a problem because of debt. Henry, the debt now — that debt is nothing compared to what’s happening now.

In 2008, the Chinese had a lot of money saved for a rainy day. It started raining. They started spending the money. Now even the Chinese have debt, and the debt is much higher. The federal reserves, the central bank in America, the balance sheet is up over five times since 2008.

It’s going to be the worst in your lifetime — my lifetime too. Be worried.

Blodget: I am worried.

Rogers: Good. Good.

Blodget: Can anybody rescue us?

Rogers: They will try. What’s going to happen is they’re going to raise interest rates some more. Then when things start going really bad, people are going to call and say, “You must save me. It’s Western civilization. It’s going to collapse.” And the Fed, who is made up of bureaucrats and politicians, will say, “Well, we better do something.” And they’ll try, but it won’t work. It’ll cause some rallies, but it won’t work this time.

Blodget: And we are in a situation where Western civilization already seems to be possibly collapsing, even with the market going up all the time. Often when you do have a financial calamity, you get huge turmoil in the political system. What happens politically if that happens?

Rogers: Well, that’s why I moved to Asia. My children speak Mandarin because of what’s coming.

You’re going to see governments fail. You’re going to see countries fail, this time around. Iceland failed last time. Other countries fail. You’re going to see more of that.

You’re going to see parties disappear. You’re going to see institutions that have been around for a long time — Lehman Brothers had been around over 150 years. Gone. Not even a memory for most people. You’re going to see a lot more of that next around, whether it’s museums or hospitals or universities or financial firms.

maxresdefault

YouTube.

Rest assured that, right up until the very end, the base liars at the Federal Reserve and the habitual idiots in D.C. will maintain that: “things are fine, never been better, impossibly healthy.” 

I’m hesitant to put a date stamp on this thing. However, I respect Roger’s expert opinions over my own foresight. But it is coming – we’re overdue and living in a financial fantasy world. When it comes, it will not be pretty. And this will probably be the one when the usual “rescue” gimmicks fail.

As for the starting point: I would suggest Venezuela or South Africa. Then again, as Rogers alludes, the watched pot never boils. Once it starts, there will be few safe havens. Are you also residing in Asia? Me neither.

The good theoretical news is that this crisis will present the opportunity for a total reset, a comprehensive solution to more than a century’s worth of economic problems. The odds of that, in most places that count, however, are rather slim. It’s far more likely that Westerners will endure a decade or two (or three) of painful stagnation followed by more of the same.

There are ways to personally prepare for some of this. You should be looking at them. And now. Looking at the TeeVee doesn’t count.

You’ve been warned. Again.

No Such Thing as a Free Lunch

25 Thursday May 2017

Posted by perrinlovett in News and Notes

≈ Comments Off on No Such Thing as a Free Lunch

Tags

banksters, economics, economy, fraud, future, inflation, Mark Zuckerberg

Why not go ahead and make everyone billionaires? Worked so well in Rhodesia Zimbabwe Inflation-Land, Africa.

Suckerberg…

Facebook CEO Mark Zuckerberg called on the need to consider universal basic income for Americans during his Harvard Commencement Speech.

Zuckerberg’s comments reflect those of other Silicon Valley bigwigs, including Sam Altman, the president of venture capital firm Y Combinator.

“Every generation expands its definition of equality. Now it’s time for our generation to define a new social contract,” Zuckerberg said during his speech. “We should have a society that measures progress not by economic metrics like GDP but by how many of us have a role we find meaningful. We should explore ideas like universal basic income to make sure everyone has a cushion to try new ideas.”

Zuckerberg said that, because he knew he had a safety net if projects like Facebook had failed, he was confident enough to continue on without fear of failing. Others, he said, such as children who need to support households instead of poking away on computers learning how to code, don’t have the foundation Zuckerberg had. Universal basic income would provide that sort of cushion, Zuckerberg argued.

“I’m from Farcebook and I’m here to help.”

Here’s a new idea: read Mises or something, Mark. Your Fed buddies and those idiots in D.C. could enrich everyone beyond belief in a few minutes. Safety nets entangle.

art.50.billion.zimbabwe.afp.gi

One helluva cushion! Good for TP or fire starter! AFP / Getty / CNN.

The Automated Pink Slip: Fred Reed Looks to the Future

27 Friday Jan 2017

Posted by perrinlovett in Other Columns

≈ Comments Off on The Automated Pink Slip: Fred Reed Looks to the Future

Tags

economics, Fred Reed, future, jobs, robots

The slightly uncertain, maybe scary future. That’s why I read Fred – he makes dissecting the unsettling a form of entertainment.

Economists are puzzled by this because they have no grasp of economics. They think the solution is to retrain displaced workers to do higher-tech things. This happy talk ignores that many of the replaced blue-collars are not smart enough to become IT managers and neurosurgeons, even if we had enough brain cancer, and that the jobs for which they would be retrained are rapidly being replaced themselves. Your can’t retrain fifty replaced clerks as programmers because the company already has programmers, and anyway only needs five.

Meanwhile our patriotic businessmen want to bring in millions of prefabricated unemployables to help us be out of work. See? Robots and humans working together. Cooperation is a key to success in almost every thing. Question: How much unemployment is needed for things to get ugly? When does it boil over?

He starts by discussing a new computer that writes better than any Barnard graduate. A little unnerving for those living off ink and keyboards.

My solution for the future? Professional Robot Killer! My services will not be cheap but you’ll gladly pay them. Give it a few years – or until next week…

Stripping It Down: Dancing For Dollars And Maybe For Dignity

16 Friday Dec 2016

Posted by perrinlovett in Other Columns

≈ 2 Comments

Tags

America, economics, gentlemen, taxes, women

And, now, for a departure from the ordinary of the blog. Herein we have no cigars, no Christmas ties, no excuses for why books take so long to finish, no terrorism, and only the slightest implied hatred of government.

I used to frequent gentlemen’s clubs on occasion. There are two of them in Athens. Well, there were two some twenty years ago. I’ll get to my ancient reminiscing shortly.

The whole Athens, 90s, go-go scene returned to mind as I read a recent article in The Baltimore Sun. Exotic dancers are legally changing the way they work and the way they’re paid.

Dancers at strip clubs have long been considered “independent contractors” whose wages consist solely of tips. But a wave of lawsuits against clubs across the country — including in Baltimore, New York, Atlanta, San Diego and Denver — has challenged that, and legal victories in Maryland and elsewhere have added dancers to payrolls at some clubs.

In New York City, more than 2,000 dancers who worked at Rick’s Cabaret between 2005 and 2012 were awarded $10.9 million in a class-action lawsuit they brought against their employer.

…

Cari Tabor, who sued the Baltimore club Scores in 2014, said that on a good night, she could make $1,000 in tips. But sometimes she didn’t make enough to cover fees charged by the club. She said a minimum wage helps make sure employees are being compensated for their time.

“It’s a base start,” she said.

Historically, strip clubs have treated dancers differently from other staff when it comes to pay.

“It’s always been that way until recent cases. If you were a bar or a nightclub and hired a band, or comedians, you wouldn’t think of those entertainers as employees,” said Baltimore attorney Peter Prevas, who has represented several clubs, including Chez Joey in Gamble’s lawsuit.

Prevas said when strip clubs bring in adult film stars to dance for a limited engagement, they are not considered employees, either.

“The industry has always treated it that way,” he said.

Prevas said he first started seeing the pay lawsuits about five years ago. He said paying dancers a regular wage is a large expense that could potentially put some clubs out of business.

“It’s all over the country,” he said. “I read all the reported cases all over the country, and there’s lots.”

Andrew Alley, owner of Scores Baltimore, declined to comment on specific cases, but said the lawsuits are driven by attorneys looking to make money.

Tabor, 38, said in her lawsuit against Scores that she was charged “house fees” during each shift she worked. Her suit also alleged that she could be charged for gaining weight.

“There’s plenty nights where you have to pay $80 to work that night,” said Tabor, who said she began stripping when she was 17 but has since stopped.

“Really, we were the ones making them money,” she said.

…

tumblr_lo82tnnfso1qiahop

Secret Stripper.

This is an industry rank with just about every abuse possible. It’s a little worse than the health club racket and almost as bad as insurance. The atrocity isn’t per se institutional but it is systemic, it’s everywhere and in all things. There are problems with all facets and most people in the business. I saw a little of this back in Athens.

I lived for a few years in what might best be described as a college students’ slum. Back then it was great. Standards were low then. One day I was doing laundry when in walked a girl from one of those two clubs. I had met her one of twice before. We talked. As it turns out she was my next door (kind of around the corner) neighbor. In fact, I had three dancer neighbors.

We shall call the three roomies: “Star,” “Roxy,” and “Mercedes”. Or “the girls”. “My girls”. We became friends. Through them I met pretty much all of the other girls at the club and the managers. I also knew all of the bouncers because I worked out with them at the old Gold’s Gym on Alps Road. Knowing everyone in a strip club makes things easy on a part-time patron. It also makes the whole experience mundane, which is the polar opposite of what one would expect (especially a single 22-year-old male). That’s part of the reason I gave up the place.

Anyway, all three of “my girls” were as sweet as possible. Really, nicer young ladies were not to be found. Nor more attractive. I have no idea how they were paid back then but I suspect it was all tips. They each made a small weekly fortune. And they were constantly broke.

Similar to the woman in Baltimore, any of my girls could have made $1,000 per night. Given schedule inconsistency and the fact that this was 20 years ago, it was probably more like $500 per night. Still great money in 1996.

The three probably brought in (and I’m wildly guessing here) $5,000 per week. And yet between the three of them they did not have a car. They caught rides in taxis, from other dancers, someone’s mom, “boyfriends” (meaning suckers), and sometimes with me. I was not a sucker because my taxiing usually came with at least free admission and a few drinks.

I found that a little odd. The lack of a car, not my freebies. Each sweetie had a valid license. No DUIs that I knew of. Plenty of cash. So, why no car? Like I said, they were perpetually broke.

The financial straits might have had something to do with Mount Versace. Where the girls’ dining room should have been there existed a pile, 7 1/2 feet tall, of fancy, worn only once-then discarded, new designer clothes. Star’s visit to the laundry room had been an anomaly.

They spent every penny they made. My apartment was around $250 each month. Theirs could not have been much more. They had power. They seemed well fed. I suppose all the rest was spent at the mall.

140507_insidedesire_zps3066cdf9

Seattle Weekly.

Where was I? This one really has no starting point, ending point, or point in general.

As I mentioned, this particular business is notorious for shadiness. All things being equal I prefer being an independent contractor. Most employers and the IRS hate this idea. I hate them right back. Many of these clubs try hard to cheat the ladies. Many of the ladies try hard to cheat the clubs. I really can’t form an opinion on this matter beyond that (shocking, yes!).

If I ran such an establishment, and thank God I do not, I would pay with a hybrid system. I would provide a base “draw” salary which the ladies would be expected to exceed and replace in tips. I also would not charge them any BS fees.

None of this would at all change the nature of the business. Ultimately, people do what they want to. And they come and go. I left it all in Athens. I imagine all three of “my girls” did as well.

Herein I got to run together current events news with an old memory. I suppose that what struck me about the Sun story was the feeling I would have never wanted my sweet neighbors cheated financially, even though they regularly did that to themselves. And I hope all of this works out well for everyone involved.

There. That’s as much of a point or moral as you get from this ramble.

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Perrin Lovett

From Green Altar Books, an imprint of Shotwell Publishing

From Green Altar Books, an imprint of Shotwell Publishing

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