Sep
22
Economics of COVID-19 in Slab City
September 22, 2020 |
Economics of COVID-19 in Slab City
This disease COVID-19 that we will be studying for decades by the unique way of its presentation, of all the different angles, should not be overlooked in Slab City. The economic impact in this California tourist town has been to stimulate it to unprecedented heights with not a single cough or case on record. The outlaw resort for decades has subsisted on low cost living in a nearly cashless barter of, first white (methamphetamine) through two years ago when marijuana became legal, and now the green of weed. With the virus cash cascaded onto the concrete Slabs which are our living quarters this modern shanty town is enjoying its first boom since WWII.
There have been two steps to this turn into a cash society. The first was the blanket issue of stimulus checks three months ago. Issue does not mean arrival here since half the town is on the lam from the law, three-quarters has no ID, and nobody know's anybody's name except by road handles. Suddenly with the stimulus it became important to have a bonafide name, even if no identification or mailing address. Where there is a buck and a need there is a way among entrepreneurs, and outlaw doesn't mean a person doesn't have the IQ of a CEO or is all bad.
A typical moll I know opened up a stimulus check service to advise and enable even the highest-as-a-kite client she had sold drugs to. In a week she was overwhelmed with 20 Slabbers who suddenly remembered their real names and didn't require an ID but needed her other wherewithal. This was the stimulus package deal. She took $200 of each $1200 stipend and had the money direct deposited into her account under her name. Verbal agreements are binding here since otherwise the debtor slides into hell with the little shoves of one's dog being stolen, home burned down, and walked to the Union Pacific RR track with a shirt on back. The moll never defaulted and built her business as a hundred times as much money poured into the Slabs for the past three months as has in any previous era since General Patton marched 100,000 troops through here.
That left $1000 for each Slabber in her account that she mandated that she take the first $100 to buy each a tent, Coleman stove, and sleeping bag to kick-start them back into normalcy. She took the loss from her personal drug sales to them with the commission and joy of seeing the scheme work. She used the $200 cut from each to outfit her own camp with bigger solar, a generator, and freezers that any clients could use throughout the summer. That left each with $900 in her account owed to others that she doled out at $200 per week, plenty to live on in the Slabs, for about one month.
The rest of the town went to hell in a hand basket by spending all their stimulus on drugs in one week, but it was a memorable one.
The second stage of our town boom began two months ago with the announcement of unemployment benefits to any Americans whose jobs were impacted by COVID-19. Suddenly, a majority of the citizens became self-employed at inventive professions such as selling Slab trinkets to tourists who had dried up, or an improbability of landscaping the slabs with social distancing. Again, where there's a dollar there's a way, and I interviewed three employment benefit consultants who self-taught themselves the application process and offered it to other Slabbers charging on average 10% commission. The government sends to the money to our Niland, CA PO boxes or general delivery, and as with stimulus no physical ID is required. I labored through the application in two hours to know that anyone with a SS and driver's license number will get the huge payoff if he uses the right words. In Slab City these phrases are self-employed, less than $2500 income last year, backpay starts in March, live in a resort town, and there are no more tourists. The job here doesn't matter as long as it relies on tourists.
No one I know has received less than $14,000 each which is more money than most of them have seen in their lifetimes. It arrives daily n the form of EDD cash cards which can be used for cash or as a debit card. $6000 has been put on each of them for backpay, with about $200 per week added for another eight months. Slab City has become a large sampling of what an individual does when he wins the lottery. Some Slabbers have bought property elsewhere and moved out. Many have purchased new used cars. There are lots of new generators and solar panels dotting the Slabs. One person bought a pound of meth for $2000 and another a pound of heroin for $14,500. It is pure and straight from Mexico so is given away or at moderate prices to first time users, which creates a habit, and these persons will be rich because the government has sponsored a drug epidemic in the Slabs,
The dogs are too fat to chase me, no one wants to leave their new AC to accost me, robberies are diminished, and the streets are vacant as if an apocalypse had struck.
The impact of COVID-19 on our immune systems means nothing to the Slabbers but the economic and sociological results are something that will be written and remembered in our history for years to come.
Comments
Archives
- January 2026
- December 2025
- November 2025
- October 2025
- September 2025
- August 2025
- July 2025
- June 2025
- May 2025
- April 2025
- March 2025
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- Older Archives
Resources & Links
- The Letters Prize
- Pre-2007 Victor Niederhoffer Posts
- Vic’s NYC Junto
- Reading List
- Programming in 60 Seconds
- The Objectivist Center
- Foundation for Economic Education
- Tigerchess
- Dick Sears' G.T. Index
- Pre-2007 Daily Speculations
- Laurel & Vics' Worldly Investor Articles