"Demand Destruction"

You might not know that I, The Chuckmeister, your friend and mine, am a graduate economist.  Yes, among my other attributes, I know stuff about economics.  Now I should point out that not knowing about stuff has never kept me from opining, usually with great clarity and reason (ahem!).  But actually knowing whereof I speak enables me to pontificate with authority.  So for those who are befuddled about this fustercluck of an economy, I thought I'd come up with an analogy to help you sort things out:

There's this bakery I dearly love that's about 7 miles from Fortress Chuckmeister.  It ooooozes warm, cuddly "umami" smells that are worth their weight in..., well, are just lovely.  And they bake this particular cookie that is the honest and honorable citizen's version of crack cocaine.  It's called "Salted Carmel Dream" and boy is it.  One bite and you're hooked forever.  They come six discus-sized cookies to the bag, and the bag goes out at the dear cost of $11.50 per.  

I should add about here that it was $10.00 a bag forever, until Joe O'Biden mumbled his way into orifice.  

Anyhoo, they only produce this delicacy on Mondays, Thursdays and Saturdays.  And on Mondays, Thursdays and Saturdays my cookie sensor kicks in and I start thinking about hopping in the old steed and cruising on down to my favorite bakery.  And snagging some of those overpriced, but over-luscious cookies.  I even conjure up reasons.  Is there a car wash on the way?  Do I need to pick up a prescription nearby?  I'm even so paranoid about it I call ahead and have them put a couple of bags aside for the old Chuckmeister.  Thinking ahead.  Works every time.

But then, reality kicks in.  Sooo, since my trusty steed is pretty thirsty around town, I just computed it would cost me about $10.00 in gas for the round-trip to buy my cookies.  And if you add in the cost of the confection, we're talking $21.50 a bag here folks!  Now, I can b.s. myself into thinking that six cookies are worth $11.50. but they sure as Hell aren't worth $21.50!  So, like the lady who goes to the supermarket, picks up an item, stares at the price, puts it back down, turns and walks away, I decide to alter my thinking.  To adopt the mantle of Scarlett in "Gone with the wind," and decide I'm not going to think about those cookies today.  I'm going to think about them tomorrow...

Now, pay attention here, I never, ever thought about the cost of the motion lotion it would take for cart my fat arse back and forth to the bakery prior to this past year's rapid run-up in the price of gas.  Never, ever...

And that, faithful Patriot, is the real-world definition of "Demand destruction."  The cost rises so high the product or service no longer sells.  Be advised we may hear about Apple and Tesla and Toyota being the big movers and shakers in our economy, but you and I, fellow Patriots, your and I are good for a full 70% of our total economy.  And the sale of new Ford F-150 pickups, long my go-to yardstick for economic activity, was down 3.7% last month.  For the first month-over-month drop in more than two decades...

When we stop spending due to "Demand Destruction," the very next step may well be a snap-back recession.  Or, perhaps worse.  As the lady once said, "Fasten your seat belts.  It's gonna' be a bumpy ride..."