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July 13, 2011 04:32pm
From the Trenches 7/11
Source: Dave Cummings - Porn Star/Producer/Director
by: Dave Cummings

Sex is a mainstay of life on Earth; but, politics and economics, especially economics as influenced by politics, is in the news a lot lately. Taxes, debt ceilings, revenues, entitlements, budgets, the Congress, the White House, energy, military conflicts, health care, Social Security, natural disasters, jobs, housing, consumer spending, the economy, and many other aspects of American life are bantered about and discussed in the media almost to the point that itís nearly impossible not to notice the constant pontificating.

Itís my thought that the Adult Entertainment Industry is affected by politics and economics. Yes, piracy hurts the "Industry," as do the unknowns associated with the economy, government, political developments, adversities, and matters and concerns related to Cal/OSHA, .XXX, 2257, etc.

One of the aspects that I particularly worry about is the potential for significant future inflation, an economic factor that could reap havoc on everyone including those in the adult "Industry" -- Iím talking here about performers, families, production companies, and fans.

Inflation is caused by more money chasing the same goods and services. I believe the Fed has printed a Lot of money these past few years as it tried to spur economic growth to cope with the recession and economic sleepiness. After all, two-thirds of the economy is fueled by consumer spending, and if we "Industry" people are hurting for bookings, we have less money to spend. The same with the general public, what with job cutbacks, and business slowdowns due to consumer inability to buy products and services.

Increased productivity and todayís subdued economy helps to keep inflation in check. But, have you noticed how grocery prices have increased; or the size of the ice cream containers and some other items has decreased, but the prices for those items hasnít gone down? Manufacturing prices for raw materials are relatively high, energy costs have sky-rocketed, health care charges are on the rise, and now it looks like apartment rentals are heading higher. The world of porn and its personnel is not immune from this tough economy.

The Producer Price Index and the Consumer Price Index "appears" relatively tame, but I sense that itís because food and energy is not considered in the core indexes that measure and report inflation. Also, costs of goods and services is artificially holding back wholesale and retail price inflation by present job holders working even harder to output services and goods to keep their jobs, by tech advances, by Internet assistance, by government programs like food stamps, and other factors that contribute to holding down inflation by reaping the rewards of high worker productivity. I worry that productivity is being stretched to the breaking point, and that inflation is about to surface big time!

The present strength of the dollar looks to me like itís about to weaken due to the government printing presses flooding dollars into the economy, an economy thatís still not creating enough new jobs or rehiring formerly terminated workers (thus the money printing might again start cranking, and inflating?), and the need for present employers to either further increase productivity, or cut back output, or raise prices. The aforementioned, the presently high prices of precious metals which are favored by many as a hedge against inflation, and runaway government spending which "flood" dollars into the economy might all be signs that inflation is in the cards or on the horizon.

Thank goodness interest rates are still low, thus allowing credit card purchases to continue, at least for those who have jobs and/or the means to make the payments on them; and, it lets the rates for mortgages and loans to be more affordable. But, what has the Federal Reserve (the Fed) historically done to control inflation? It raises interest rates as a means of strengthening the dollar and making dollar-denominated financial instruments more attractive to investors, while dampening consumer spending. Bottom line, inflation will increase interest rates and prices. Buckle up when that happens!

Higher interest rates means that apartment maintenance will be more expensive causing rents to rise, credit card payments will increase due to higher monthly finance charges, and costlier trips to the grocery store might become just as depressing as trips to the gas station. Also, costs for auto repairs, clothing, medical needs, and even trips to a fast food favorite might increase along with a whole host of other areas. Will the Adult Entertainment Industry adversely feel the impact of future inflation? Sadly, the answer is yes, especially given the piracy, economic conditions, and decreased productions and bookings.

What should we do to prepare for potential inflation, and the resulting higher living costs it brings? In my opinion, it depends upon individual circumstances, but maybe cutting back on non-essentials and saving for a "rainy" day might help; accepting bookings that might otherwise be rejected might help; moving into a cheaper apartment might help; and, finding other avenues for income like a part-time job might help (one of the things Iíve recently done is activate a Pay-Per-Minute www.DaveCummingsInfo.com web site to garner additional income while simultaneously answering questions Live on the phone for fans and others ó email me at dave@davecummings.com for info on how it costs nothing, and can easily be activated for Free to help all porn and cam performers, too). I think we all need to be setting up strategies Now to survive the upcoming inflation.

Keep in mind that production companies and Adult Industry performers arenít immune from the present economy, or potential future inflation. We need to consider options, and plan ahead now.

In closing, I promise to get back to covering sex, swinger parties, and other naughty stuff next month.

Hang in there, use sun block, plan for a rainy day, donít do physically risky things (donít drink and drive; Do use condoms off set), and be nice to yourself and others just for the wonderful sake of being nice!

Dave Cummings

www.DaveCummingsInfo.com / www.davecummings.TV / www.davecummings.com / www.davecummingsvod.com

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