Then we will fight in the shade. /ref
Economics is quite a large and imposing subject. I too first thought that cutting government and lifting people's freedom from it would be a rising tide. That sounds good and tickles my Libertarian heart. Turns out, like most wealth, any increased profits from that policy is largely collected and siphoned off. Workers feeling just a trickle, if anything. As a trend that has continued since before my birth, I'm confident that it has both failed and lead us to this point.
First, you need some perspective... a sense of history. My parents speak of how well paid labor was in the 60s. Working as a machinist back then supposedly resulted in more value to that single worker than a low 6 figure income today. They "ate and lived better" on a single worker's income. Impossible you say? Inequality For All verifies the essential parts. Both with
case samples, and
in totality. The value of labor has, and continues to, decline sharply.
"But the world is still moving along just fine!" You might say. Hah, no it is not. There were 3 major coping mechanisms that have forestalled economic collapse. Women entered the workforce to turn single worker households into dual worker. This dramatically increased their wealth.... for a time. In the 90s they worked longer hours to keep up with rising prices. In the 2000s more people plunged into poverty, but those who could afford it played a shell game with housing and debt. In 2008 their bubble burst. Today.... is our reckoning. No more spouses to enlist, no more extra hours or extra jobs to grab. No more free housing, loans are scarce, and debts are being called in. The dot com bust followed by the Great Recession marks the next stage of a long and arduous decent into poverty and welfare. Unchecked, it will lead to economic collapse.
Second, our future is to continue this trend. By virtue of its own merits, Capitalism is the journey to achieve efficiency. That is why jobs flee to Mexico, to Japan, Korea, China, etc Capital will always follow the cheapest labor, globally. So long as there's people in poverty, slave wages will exist and you will compete against them. Wage suppression is quite real in a global economy, until you're willing to both work and live like Foxconn "employees". Hence my documenting labor's decline in value. That trend simply does not stop, how would you propose to stop it?
There's more. Human labor is not efficient. As automation increases it will not be viable to keep humans participating in the economy via employment The trend is for labor's value to decline until it is literally worth nothing. It'll come in waves... first it'll be simple labor, and driving. Followed by more complex tasks. There will be a great economic shift, lots of turmoil as people struggle to make worthwhile wages. Minimum wage is a band-aid on a severed limb, you'll still compete against slaves and automation. Not enough money in labor today, even less tomorrow. The future is a no win scenario for anyone thinking labor and employment are going to keep our people fed and housed.
Third, you need to appreciate stimulus. The effect of "full employment", and our need for everyone to participate in the economy. As a matter of living, especially to maintain a certain quality of life, humans need to purchase and consume products. As they make those purchases they move money to the producer and their employees. This flow of money is a liquidity upon which stable economies depend. Everyone depends on everyone else spending money.
Ah, you say. I just spoke of automation breaking that chain. Money moves from spender to producer... no employee. No employees, no consumer. It's a vicious cycle which also relates to why recessions and depression hurt so god !@#$ much. Economic contraction is always a painful interrupt in the supply chain, and the free flow of money. Repressed wages and automation will also trigger seismic shocks to our system. Only those shocks are longer lasting, and growing.
To conclude, make no mistake we are in a serious funk. "Welfare" grows by the year, our people's need for it parallels that growth. There's a lot of red tape and BS standing between us and the continued free flow of money to keep our economy properly stimulated for all the products to produce, sell, and consume. We need to ensure that everyone, regardless of circumstance, is able to participate in keeping the goods moving. In keeping others employed by those sales. By having a universal basic income. $1,000/mo can be done for 65% of today's budget.
It works be taxing producers and ensuring that they have the same economic impact as if they had employees, even if they don't.
It works by being simpler and straight forward than the current hodgepodge of tax credits, benefits, programs, stamps, and welfare.
It safeguards a certain minimum of economic activity from recession, or slave labor, or even automation.
And through that safety net our people can be secured, economically.
My proposal is no bigger than the needs of our people. Block out the sun? No. I mean to plug the hot gates and stop us from falling.
Democrat? Progressive? I will work with whoever I need and call myself whatever it takes to see this done.
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