Wednesday, July 25, 2012

Follow the Paint to Understand the Growth of Government

Business is really starting to boom for paint manufacturers in and around the Belly of the Beast. Brian Hearn emails:
I have been working temporarily for the last 6 months at a major paint supplier. Your report on the sluggishness of the money supply in the past few months has mirrored the output of our supplying paint to the painting companies in the Northern Virginia area.

We don't provide much paint to the federal government or federal contractors, but we do provide a lot of paint to the companies that get those federal contracts, and just recently the orders have quadrupled. Up until the not to distant past, delivery orders for commercial paint out of our store was resolved with one driver for the day, maybe a second driver in the afternoon. More recently, we have had four drivers making deliveries during the day. I deliver to government contractor sites all day long. No question, the money is now making its way through government-related construction sites.

1 comment:

  1. Wait...Robert. Maybe I'm confused. If money supply growth is down, shouldn't that mean paint sales to government-grant recipients would be down?

    Or, is he just saying that the money supply increases from past bouts of easing is finally trickling through the rest of the economy?