# Collapse of World Economy - YOU can help!



## rake60 (Mar 5, 2009)

The world economy being as it is I find myself sitting at home collecting
unemployment benefit insurance checks. Down but by no means out!

These hard times are a chance for the home hobby machinists to shine!
We all have local businesses who need machine parts replaced or repaired.
The average cost for a commercial job shop is $90 per hour.
We can do the same thing for much less.

Do your part!
No profiteering! 

Rick


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## joeby (Mar 5, 2009)

Well, Rick, that makes two of us!

Kevin


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## Maryak (Mar 5, 2009)

rake60  said:
			
		

> These hard times are a chance for the home hobby machinists to shine!
> We all have local businesses who need machine parts replaced or repaired.
> The average cost for a commercial job shop is $90 per hour.
> We can do the same thing for much less.
> ...



That way they will come back for a one off even when times are good. Ask me how I know :

Best Regards
Bob


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## rickharris (Mar 6, 2009)

rake60  said:
			
		

> The world economy being as it is I find myself sitting at home collecting
> unemployment benefit insurance checks. Down but by no means out!
> 
> These hard times are a chance for the home hobby machinists to shine!
> ...



Bad news! - As someone who is about to retire (about 17 weeks) I am hoping to be able to make some small time money out of my skills to suppliment my pension. I agree the rise of the small shop is comming - No finance, quick response and good work. Just how it used to be before the global corporations got into the act.

Good luck.


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## Kludge (Mar 6, 2009)

<minister mode>
No propheteering? Oh, dear. Things are that bad?
</minister mode>

Best regards,

Rev. Kludge


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## mu38&Bg# (Mar 6, 2009)

Unemployment sounds awfully familiar. I actually have a little contract work I can make a few bucks in the shop. The infrastructure bill will keep my wife employed, I hope.


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## rleete (Mar 6, 2009)

I'm a mechanical (tooling) designer for a place that makes lenses. We're so busy with solar stuff, that we're having a hard time meeting demand. Good place to be, especially right now.


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## Tin Falcon (Mar 7, 2009)

Rick:
 While not on the unemployment roles I am doing my best to help the economy. There was a broken part at work the other day that the factory replacement is $ 130.00 list I told the boss I would make him one for half that. It is a simple part about 2 1/2 inches long 3 mm in diameter easily turned on the lathe. Helps me helps the employer. 
Tin


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## putputman (Mar 7, 2009)

This might be a little different look at the economy situation from some of us "old farts". I'm sure I am not the only one in this position.

I am watching my 401K going down the toilet. I had hoped this program would help support my hobby until I tipped over. The way things are going, I just hope I can keep my shop for a few more years.

I got started in this hobby just a few years ago and there are so many engines I still want to build. I have built several casting kits, but they are getting so expensive that I doubt if I will be able to buy any more.

I am so grateful for this forum and people like Maryak10, Brian Rupnow, Chuck Fellows, Stevehuckss396, (and many more) who are willing to pass their designs and ideas on to the rest of us. These are the new Elmer Verburgs, & Bob Shores of this hobby. Right now I am building Chuck Fellows John Deere(with his help).

I can build most any engine if it will fit my equipment and I have prints. Unlike these other guys I mentioned, I do not have the imagination & ability to picture an engine in my mind, put it on paper, & build it. I admire these people who have this ability. 

I thank God I have a shop to help take my mind off this screwed up economy for a few hours each day.


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## Maryak (Mar 7, 2009)

putputman  said:
			
		

> I am so grateful for this forum and people like Maryak10, Brian Rupnow, Chuck Fellows, Stevehuckss396, (and many more) who are willing to pass their designs and ideas on to the rest of us. These are the new Elmer Verburgs, & Bob Shores of this hobby.



putputman,

Thanks for the kind words. :bow:

I would not even have got to 1st base without the help of others, in particular SandyC and GailinNM. I think I have a hell of a long way to go before I can stand in the shadow of Bob Shores or Elmer Veburg.

Two of my mates have had to go and find a job as a result of our current woes - From State manager of a Gas company to storeman in a woolshed. If it wasn't for my Survey work, (which is spasmodic at best), I too would be on the bones of my butt.

Best Regards
Bob


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## cfellows (Mar 7, 2009)

Thanks for the high praise, putputman. Not sure I'm in Elmer Verberg's league yet, but I aspire.

As Bob so rightfully says, everyone has a lot to offer and I learn new things daily from the people on this board. A mighty fine bunch of people.

To me, the highest form of reward is for someone else to like one of my engines enough to make one for himself. Couldn't ask for more!

Chuck


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## Stan (Mar 8, 2009)

I just read a newspaper interview with 72 year old George Cohon, the founder of McDonald's Restaurants of Canada and founder of McDonald's in Russia. He is also the founder of Ronald McDonald Children's Charities in Canada and Russia.

When asked what is the cause of the current financial mess, here is his reply: "Greed. Lack of accountability. People living above their means and doing things without realizing the consequences of their actions".

That simple statement is clearer than all the verbiage from the politicians and economists.

I don't know how many on this board contributed to the problem, but most have the skills, ambition and work attitude to survive the downturn better than the unskilled, sitting on their duff waiting for the Government to do it.

For anyone interested, here is the complete interview;
http://www.financialpost.com/news-sectors/story.html?id=1362138


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## rleete (Mar 9, 2009)

putputman  said:
			
		

> I am watching my 401K going down the toilet. I had hoped this program would help support my hobby until I tipped over. The way things are going, I just hope I can keep my shop for a few more years.



But, if you economize for the next year or so, whatever is left in those accounts should grow. Maybe go down a bit for another year, but after that it's got nowhere to go but up. I lost 45% of my retirement, but being 20 years away from retirement means I should recoup most of the losses, and be back on track. Those with less time, or already retired will certainly feel the pinch more.


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## ChooChooMike (Mar 10, 2009)

I just restocked my pension plan at my company. I liquidated it 10 years ago when I volunteered for the layoffs at that time. I swore I would never go back. But after the Internet bubble of the late 1990's/early 2000's burst, I got laid off from in Internet company. My old company was hiring and I was back in and grandfathered into the old pension plan (nice perk I didn't know about). So I scrimped for the last year and put all the $ I owed to the pension plan to get me back up to date. Probably one of my smarter moves given the current state of the economy. 

I could retire in 8 years @ 55 years old ....... definite food for thought, but who knows how long this downturn and hopeful recovery cycle will take ??

Mike


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## rickharris (Mar 10, 2009)

ChooChooMike  said:
			
		

> ...
> 
> I could retire in 8 years @ 55 years old ....... definite food for thought, but who knows how long this downturn and hopeful recovery cycle will take ??
> 
> Mike



retire at 55? do it  everyone I have spoked to who has retired in the past 10 years says the same:
a) you need MUCH less than you think to cover your day to day living.
b) you need a little more to cover enjoyment than you spend at present (more time).
c) you will have no problem filling your days
d) you will never have been so happy.
e) you have the time to do some good in the world, children, grand children, other kids,  humanity in general.

(errr - I am not saying you don't do good at the moment!) - you know what I mean 

PS I have 18 weeks to go


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## Kludge (Mar 11, 2009)

rickharris  said:
			
		

> retire at 55? do it  everyone I have spoked to who has retired in the past 10 years says the same:



I retired from the college at 46 which gave me an opportunity to pursue dreams like driving a truck for a living before the VA's meds made it so I couldn't pass a drug test. I worked harder for that CDL than I did for anything else in my life but, even as short a time as I had driving (2 years after training), it was worth it.  

The folks Rick talked with have it right, if you do it right. Have an idea what you want to do beforehand and stick to it. My plan was simple: write science fiction - which never sold - and do repair work & restoration on thrift store finds for money. I added internet research and some writing (technical mostly) when I found out that there was money in it. I'm sure the rest of you pre-retirement folks have something similar you can do to 1.) keep occupied, and 2.) bring a little extra cash in. 

The first few months are the hardest because you're no longer on the clock. That takes a bit of getting used to which means that's the time to just relax as if you were on an extended vacation. Once you've gotten past that stage then have a means in place to do the things you want to do - the ones that bring you the most pleasure. Like making chips and swarf. 

BEst regards,

Kludge


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## Loose nut (Mar 11, 2009)

Most of us got burned to one degree or another, My stock which is bought monthly as a payroll deduction dropped about 40%.

 With the right attitude there is a bit of a silver lining, I still purchase the same dollar amount each month but I now receive a lot more stock due to the lower value. I figure that before I retire in a few years it will recover a lot of it's value and I will have accrued more stock than I could have with the previous costs. It should offset my loses and maybe even put me a bit ahead. 

It's a gamble but thats what the stock market is all about, hanging in and crossing your fingers.


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## kvom (Mar 19, 2009)

I made my first paid parts today. A friend of a friend needed to make a couple of faceplates for a big electrical connector for his church's sound system. 4"x6" steel plate needed 4 holes for 1/4" bolts and a 2-1/4" hole in the center for the connector.

I figured it would take less than an hour for both. After finding the center of the plates I drilled both at the same time, using my largest drill (1") to start the center hole. Then I started to enlarge it with the boring head.

The problem started when the hole was about 1-1/4" in diameter, and the force of the boring bar was enough to move the 16ga plate in the vise. So I had to clamp the plates to the table over a piece of sacrificial aluminum. It ended up taking 1 hr and 45 minutes all together, so for the $20 I charged I was making a bit more than minimum wage.

At least now I can call myself a "professional" machinist.  :


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## deere_x475guy (Mar 19, 2009)

I use to pick up a couple of paying jobs a year but nothing last year and nothing so far this year..All the little shops that used me are OOB now. I am luckily still employed though and things don't look to bad for the company.


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## zeeprogrammer (Mar 19, 2009)

It's hard. It doesn't help that it's been harder in the past. I remember the stories my folks told me about the 20s and 30s. The 40s too. My parents (and now gone grandparents) are from both sides of the war (and I've been fortunate to live in both countries and know the people).

I've been on unemployment too. But the danger isn't the money (the lack of)...it's the hit to self-esteem, confidence, and dreams. That's really why forums and clubs like this are so important. The learning is great...but the comraderie and sharing is survival.

For me...with or without a job...I worry for my daughters. I've struggled to get where I am and wish for it to be easier for them. I sometimes feel like the rug has been pulled out from under me. Still...it's about family...including, even though I've recently joined, this forum. Great support. Great people...and from all over the world!

Having said all that...my experience has been that more than likely things will get better. And while we always 'remember the good old days'...these days will become the 'good old days'.

Best of luck.


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## bmuss51 (Mar 20, 2009)

hi:
i have looked through the posts, and i just thought i would like to add a little.
 i was a tool & die maker for 37 yrs and thought i could retire early at age 55. so i did and had picked up a part time job at a local hardware store.and now I'm 58 and got laid off of my partime job because of the economy. but, yes i can collect some unemployment but does not cover what i had as far as i had. 
 from my full time job which i retired from i do get a pension. and at the time i needed to get some money out of my IRA to cover the month to month costs and maintain my life style. which everything was going great. like with the partime job i was able to buy a mill, lathe, a couple of motor casting kits, and misc tooling to support my engine build hobby for my retirement yr's.but sense the things went south and got laid off, i have to sit back and regroup my cash flow. like the money i am drawing out of my IRA is done by a 72t account with the feds. and during a 5 yr contract for this setup you are allowed to change it once to a lower amount which is about 75% less per month. so right now I'm up against the wall so to speak.so do i want to change my withdrawal from my IRA or hope things turn soon, but inflation will eat me up. and the other thing is the money i was getting out like last June cost me 15 shares per month but i was earning 20 shares and that was a great setup. but now it costing me 30 shares per month which eating away at my IRA. and that 15 shares extra will be lost for ever even if the market does come back.


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## Cedge (Mar 20, 2009)

Kludge probably gave some of the best advice I've seen. Men tend to identify themselves with what they do for a living. Rick is a machinist, Kludge was a truck driver... etc. When that job goes away, it's often replaced with a feeling of loss that brings on some level of depression. The more responsibility, the more likely the risk of becoming lost and disoriented. Take the time to get your head un-warped before you try to figure out a direction to travel. 

I went though it at 45, when I sold my company, and had to fight my way back to normality over a period of 18 months. Let me tell you, those were some very dark months, mentally. It wasn't until I realized that, for the very first time in my working life, I could take a job and actually quit and go home if I didn't like it, that I finally bounced back. It was then that I decided to write a book on advanced digital graphics techniques to share what I'd learned over the years. It was a fair success within the targeted market and my self confidence was boosted at a much needed time.

That project was followed by a period of restoring small toy steam engines for some very serious collectors.... which lead to my getting into hobby machining. I've always been one to teach myself how to do things and this hobby has kept my mind filled with a fertile supply of mental puzzles. The key is to stay mentally engaged and get too busy to have time for the blues.


Having been through a number of recessions, I'm seeing something this time that I've not seen before. People are scared and now they are beginning to become angry. In the past everyone safely assumed things would eventually get back to normal, if they just hung on and got through the tough times. Now we're seeing a changing of all the rules. The fear now is that the world we have known will have been altered beyond all recognition when we finally emerge from the present crisis. 

The fear is that our children will no longer have the opportunities we've enjoyed. It also shows in this thread with concerns that the value of our savings is being stolen right before our eyes and nothing we can do will stop it. This week, the treasury created a trillion dollars out of pure thin air. The dollar once again dropped in value across the globe. Eventually inflation will have to rear its ugly head, making retirement much more difficult, if not impossible for many of us.

Bmuss....
I too am in a 72T and have had to make some hard decisions to keep it funding itself. I went to cash last year and avoided a lot of the carnage. Nothing of genius in that... I just got spooked by the market oscillating in ways I'd seen before (lost lots of money during the tech bubble and 2001) and decided to sit it out this time. I feel your pain. 

Steve


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## rake60 (Mar 20, 2009)

I'm working on my back up plan here.
Two years ago I closed my part time small engine repair shop.
It was just too much. I was working 10 hours a day then coming home
and working another 6 hours in the engine shop. I had planned to reopen
it next week but word got out sooner. Now my issue is SPACE!





That stuff is all finished and waiting to be picked up before I can accept more
work. I even found time to dig that bike out of the back corner.

My official parts chasing vehicle.




It's all tuned up, polished and inspected.
Ready for *BUSINESS!* 

Rick


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## deere_x475guy (Mar 20, 2009)

It is getting close to bike season. Glad your back up plan is working out Rick.


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