Work
We seem to be hearing the “no one wants to work” or “job vacancies are not being filled” narrative a lot recently. As we speak workers are striking over pay, not returning to work or opting out entirely. This is not a new phenomenon it has plagued the “modern industrial financial” system for over 100 years. Have a read below
1894
1905
1922
1937
1952
1969
1981
1999
2006
2014
2022
What’s the crack?
It is safe to assume that most of the jobs out there won’t be as bad and uninviting as the one above so what’s going on.?
The talking heads bobbing in mainstream media will drone on about minimum wage or incentivising people back into work.
Focusing on the here and now we would agree that where labour participation is an issue it is usually due to the wages / salaries not making market rate. In other words, the pay doesn’t equal the correct perceived value for the output (work). Increase the pay significantly and the jobs get filled, but there are two main issues that stop this happening:
Companies in these periods cannot afford to raise pay across the broad spectrum.
Those big companies that can afford to increase wages are slow to do so as decisions around pay are often made centrally far away from where the work is getting done. This gives an advantage to smaller companies that are not so heavily burdened by their own practices (who often cannot afford to pay more).
Thus you have a spiral of negative outcomes. Less pay = fewer jobs and less money. With less money we spend less so companies cannot pay more to staff, have fewer jobs and less money. A downward economy —> recession.
Ever wondered why this happens in the first place? Why does the whole global economy follow the same boom and bust cycle? Even 100 years ago (as shown by the clippings above) we have the same issues. Well it is likely due to the inflationary fiat system we live in. Money today is not the same value as money tomorrow.
We have alluded constantly to these issues along with the Fiat Brain way of thinking and how if you try to thrive in the Matrix of currency printing then the chances of success dwindle daily unless you can attain hard assets that everyone desires that cannot get diluted over time… think Gold, Land, Good Property, Art and the best of all Bitcoin.
Yea yea we go on about Bitcoin but guess what dumbo there is a reason we do.
What happens when an inflationary system collides with an unstoppable deflationary system?
Till next time
The Wealth Gap Team