The unemployment rate in the United States was near 25%. That was the worse employment period in U.S. history. Today, that number stands at roughly 4%.
We can debate the preciseness of the numbers but the overall picture holds true.
So how are we going to deal with 50% unemployment in the next 10-15 years?
Think this is not possible? Think again.
We are presently in a situation where the United States has a booming economy. The rest of the world is starting to see a slowing. Hence, it is only a matter of time before the Untied States is affected by the rest of the world. China is slowing, Western Europe is struggling.
Thus, I make use of two variables to reach my conclusion.
A) We will have a global recession within the next 24 months.
B) As evidenced by the reports coming out of Davos, corporations will use this opportunity to invest more in automation, positioning themselves for greater profits when the economy recovers.
We are now in a corporatocracy. Labor is the largest expense most companies have. The elites at Davos are well aware of this. They also see how automation can replace 10% of their work force. If 10% why not a lot more?
GM Brazil, in the 1980s, had fiber optic computerized robot automated lines and warehouses which led to the elimination of rooms full of engineers along with line workers. Automating insurance, finance, banking, and accounting is a lot easier.
For all the talk on here about the promise of blockchain, few mention what the eventual outcome will be. The increased use of blockchain will eliminate middle men. That means a lot of lost jobs. Once again, we can see the devastation to Wall Street from this technology. People who work on supply chains, in logistics, and any other verification entity are going away.
We are in the early stages today. Picture how this technology will look in another decade.
The central fact is we are experiencing a paradigm shift that was never witnessed. People call it Industrial Revolution 4.0. Whatever the term, we are going to see things happen that never took place before. The main reason is speed. This is going to affect a lot more people because of the speed that it hits.
I keep saying I could care less about people's politics, economics, and finance. Most of that is going out the window. Technology is driving the show and it brings with it a host of new rules. What was applicable 30 years ago is no longer the case. Trying to apply economic theory that was developed in the Second Industrial Revolution simply does not work. The relationship between labor and capital is opposite that era.
To increase capital today, reduce labor.
Government are impotent to stop this. The Yellow Vest movement is just getting started. We are going to see a lot of upset people around the world. Our political leadership is clueless as to what is coming. In the U.S., we have a bunch of gray hairs in office. These people send secure emails on a public WiFi and think Tweeting is technology. No wonder Zuckerberg ran circles around the Senate.
Tax revenues are going to drop like a brick. When people are unemployed, there are no wages to tax. Also, bankruptcies go through the roof. This means that interest rates, no matter what the central banks do, will keep dropping. The ones who would borrow will not need to because they are going to be flush with cash due to automation. Corporations are going to be running the show even more than they are today.
They are going to be the ones funding the governments.
The people who are in the middle of the system will be crushed. Those who believe what they are being told are going to get eaten alive. The ones with money in the stock market, longer term, will most likely do well as long as it is invested in companies using AI and automation. Remember, profits will grow significantly.
But where do the revenues come from? The same place they are now: debt. Governments will end up being feed through systems to people. They will issue more debt to pass money along to the populous. This money will be routed back to these mega-corporations through spending.
It is a nice little circle for them.
This is what the average person is facing. Going to depend upon Social Security? Good luck with that. Have a pension? Expect it to be cut. Got a nice job with a great salary hoping to get another 15 years to retirement? Consider it gone.
Fortunately, for those reading this, we are aware of the solution. Those who are getting involved in cryptocurrency and blockchain now are going to be in a better position. What we are doing on here each day will insulate us from what the rest of society is going to experience.
Why do I believe this will happen so quickly? After all, my forecast is more aggressive than most.
The answer is blockchain. I have yet to see an article discussing this which mentioned the devastating impact that blockchain will have on traditional jobs. Since I am one who believes in the promise of what this technology offers, I also am aware of the ramifications.
Think of the potential impact when a business owner(s) can log onto a site like steem-engine.com, have a smart contract written, and take the company public. No IPO. No lawyers. No brokerage fees. Simply create a token and put it out there. How much money does that pull out of the IPO system?
People might not care about decentralization but it is the only thing that will save their bacon. These system is established in such a way that only those in power are going to benefit. We are not going to see solutions from inside the system.
Luckily we see a new system being erected that we are all a part of. Hopefully, more keep joining to protect themselves.
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