Re:WTF Happened in 1971? (2019)
by trident1000 on Monday November 23, 2020 @04:08PM
(#25191918)
Labor costs driving down is also from tech companies outsourcing many of their humans from other countries like India (tech companies are now the biggest segment of the economy). Not to get political but its why they donate 95% to the democrat party who goes to bat for them with maximum labor exploitation regulations (open borders, H1B visas, etc). They're not donating money for nothing.
Aren't you a quarter of a century off on the WWII thing?
It takes a generation to create new workers. A quarter of a century before, you had men who went to war and die instead of a factory and stay alive. Now you have a new generation where men didn't need to go to war.
Perhaps. Seems to me that if that was the principal reason for the change, then the transition would be smoothed over several years.
It is not. It just added a bit to the effect, I'd put it as secondary or less.
- Woman entering the workforce: I think this is the primary driver of wage deflation. You suddenly doubled the supply of the workforce, this means you can afford to pay workers much less. The end of WWII also means you have new supply of men who were doing army stuff.
- US Trade Balance: With the gold standard abolished and countries using the USD, the US can now afford to offshore some of its work to other countries. They get these products for free. The US trade deficit is being financed by the money printing machine. There is a tax to trade internationally and to mismanage your country currency: It's the USD. This means less jobs for Americans. Along with the doubled supply of workers, this over-complicates the situation.
- Brave new world of Global Capital: Imo, the next challenge is just starting and it's global capital. With a doubled work force and less jobs, your average American will have trouble getting anywhere in life. But wait, it's going to get worse. Your top earners in foreign countries can now transfer their money to the US and buy property. Luckily, they are only doing it now in hot spots (LA, NYC, SF, DC). But it's a matter of time before this spread further, fueled by the Internet (people can discover more places and don't have to rely on the most known ones) and people who used to own in hot spots and decided to buy somewhere else because it's cheaper. Cities like this because it drives their real-estate market and create jobs, so it seems like it should fix the problem.
The next decade is going to be an interesting one.