Economy 52,838 Posted August 11, 2015 Share Posted August 11, 2015 https://hbr.org/2004/03/its-time-to-retire-retirement This is a big problem. Countries like the United States are getting close to reaching full capacity as its unemployment is now at 5.3%. Once unemployment drops below 5% is becomes harder for companies to hire and expand business and economy cannot grow... If unemployment is down to 5.3%, why does the American Economy not feel like it did back in 2005? why Does Japans economy suck when its unemployment is also low? THIS IS THE REASON WHY: As birth rates chronically fall, the population ages, more people enter retirement... the percentage of the population that is actually working, being productive making money and spending it is shrinking... instead we have more and more people doing nothing without being productive, and consuming less on their decreased pension income Less economic activity is not only a consequence but a certainty. At full capacity once a Nation reaches full employment, the labor doesnt exist for the economy to expand any further unless there is productivity growth per worker. Less people working now is the reason even Nations with lower unemployment cannot seem to reach the same economic output on a per capita basis as in the past with the same unemployment Technology which will continue to increase productivity for every worker that exists by speeding up the work (or in some cases eliminate need for the worker) will allow the productive capacity to remain intact even if less of us are actually working and doing anything. Link to post Share on other sites More sharing options...
Computer 10,980 Posted August 11, 2015 Share Posted August 11, 2015 But I am glad if we reach full employment and the companies struggle to find workers because then I might be in demand and able to switch jobs and leave my hell behind. 💚💛💕❣⭕💢💢 | ⓜⓔⓡⓡⓨ ©ⓗⓡⓘⓢⓣⓜⓐⓢ Link to post Share on other sites More sharing options...
Economy 52,838 Posted August 11, 2015 Author Share Posted August 11, 2015 But I am glad if we reach full employment and the companies struggle to find workers because then I might be in demand and able to switch jobs and leave my hell behind. u can still get full employment with more workers... thats a cyclical thing and policy thing its better to be at full employment when more people are working than full employment when fewer people are working. The economy is more virant and active when everyone is productive right now unemployment in the US has fallen a lot and it seems like the economy still sucks Link to post Share on other sites More sharing options...
Electric Venus 484 Posted August 11, 2015 Share Posted August 11, 2015 jobs are wage slavery anyway, thank god i won't have to ever reduce myself to that! Link to post Share on other sites More sharing options...
Economy 52,838 Posted August 11, 2015 Author Share Posted August 11, 2015 jobs are wage slavery anyway, thank god i won't have to ever reduce myself to that! here we go again u know the incomes from a typical small business from self-employed or businesses with only a handfull of workers is not that great... Most small business owners at best make above average incomes many not even average... on the otherhand you can have a good job that pays well If u wanna own a business so no one tells u what to do thats one thing... but if its because of money, unless you manage to expand your business into a mid-cap or a corporation you likely wont be making that much more money than a typical person in any case this is off topic anyway. im talking about productive capacity of an economy not whether you choose to be a worker or not Link to post Share on other sites More sharing options...
Electric Venus 484 Posted August 11, 2015 Share Posted August 11, 2015 here we go again u know the incomes from a typical small business from self-employed or businesses with only a handfull of workers is not that great... Most small business owners at best make above average incomes many not even average... on the otherhand you can have a good job that pays well If u wanna own a business so no one tells u what to do thats one thing... but if its because of money, unless you manage to expand your business into a mid-cap or a corporation you likely wont be making that much more money than a typical person in any case this is off topic anyway. im talking about productive capacity of an economy not whether you choose to be a worker or not i don't own or want a business(yet anyway), it really isn't that hard to make money when you know when you're doing i'll admit it's probably easier for me though since i was exposed to that kind of thinking from a young age about making $$$ but clearly it's working since my brother just retired at age 20 and is making more than ****ing DOCTORS do already Link to post Share on other sites More sharing options...
Economy 52,838 Posted August 11, 2015 Author Share Posted August 11, 2015 i don't own or want a business(yet anyway), it really isn't that hard to make money when you know when you're doing i'll admit it's probably easier for me though since i was exposed to that kind of thinking from a young age about making $$$ but clearly it's working since my brother just retired at age 20 and is making more than ****ing DOCTORS do already what does he do? Link to post Share on other sites More sharing options...
Electric Venus 484 Posted August 11, 2015 Share Posted August 11, 2015 what does he do? he doesn't tell me everything he does and i'm still learning about most of the stuff anyway but i know he makes a lot of his money from currency trading(which is the main thing im learning right now since its kinda fun for me and i pick it up really easy), not sure what else but he gets taught from some of the best business minds in the world so he does have an advantage there but still, it's worth it in the end. i don't understand most of it yet though so i couldn't tell you what else, im still learning Link to post Share on other sites More sharing options...
Economy 52,838 Posted August 11, 2015 Author Share Posted August 11, 2015 he doesn't tell me everything he does and i'm still learning about most of the stuff anyway but i know he makes a lot of his money from currency trading(which is the main thing im learning right now since its kinda fun for me and i pick it up really easy), not sure what else but he gets taught from some of the best business minds in the world so he does have an advantage there but still, it's worth it in the end. i don't understand most of it yet though so i couldn't tell you what else, im still learning oh that... currencies dont fluctuate as much as stocks tho... actually usually a currency will rise along with stocks because if theres inflow of investment that will rise both, so if your an outside holder you get the benefit of a higher stock and an investment in a currency that is worth more... personally i prefer regular investing on good companies with fundamentals but thats just me... i like a--lysing macro-economics more than speculation trading. speculation trading requires u to do it as a job all the time and i think id feel stressed if i was watching my money on the line constantly all the time Link to post Share on other sites More sharing options...
Luc 4,776 Posted August 11, 2015 Share Posted August 11, 2015 Interesting. So the real problem is lack of innovation now. But there's a lot of technology available and productivity gains available that aren't made yet.. I think what the US government can do is stricter job regulations and a higher minimum wage to make hiring more expensive, leading to more investments in technology to compete with labour.The US still has a lot of potential in labour participation, though. The US should work on getting a bigger working population by for example getting paid sick leave (a year is good) and maternity leave, which would also make labour more expensive at the same time. I think what the US now needs is more regulations rather than less, and there's no real good excuses anymore to overspend other than having a bad infrastructure. Link to post Share on other sites More sharing options...
Economy 52,838 Posted August 11, 2015 Author Share Posted August 11, 2015 Interesting. So the real problem is lack of innovation now. But there's a lot of technology available and productivity gains available that aren't made yet.. I think what the US government can do is stricter job regulations and a higher minimum wage to make hiring more expensive, leading to more investments in technology to compete with labour. The US still has a lot of potential in labour participation, though. The US should work on getting a bigger working population by for example getting paid sick leave (a year is good) and maternity leave, which would also make labour more expensive at the same time. I think what the US now needs is more regulations rather than less, and there's no real good excuses anymore to overspend other than having a bad infrastructure. ive always agreed with a higher minimum wage (within reason) although i think it should be more of a push on States to do that. Economies vary from State to State and thw right minimum wage for one may not work for the other Here in Canada with pay, productivity and cost of living some Western Provinces could use a $13/h minimum wage. But say in Atlantic Canada $10/h is already on the high side. In the case of the US... You cant expect a Staye like Kansas or Indiana to have the same minimum wage as New York or California for example Edit: yeah forgot to mention. I agree. Technology replacing labor and making things cheaper and freeing up labor for other stuff is a good thing thats why we can have like 10% of population now work on necessities like agriculture and construction while the other 90% can do things like hair dressing, being waiters, telephone providers, etc etc etc the modern service economy has only been made possible because technology made other jobs more efficient and we have more resources to devote to other things now. We didnt all become unemployed just because were no longer needed as farmers or horse drivers Link to post Share on other sites More sharing options...
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