- Sep 12, 2012
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Fed warns of extraordinarily uncertainity on path to recovery.
The path back to economic recovery is going to be a very long one. What will be incoming IMO is the widening wealth gap between the rich and the poor. As more and more middle class Americans move into poverty, we will have a small part of Americans who understand what is taking place, so they will be able to pivot and take advantage of the new financial landscape. Most people though? They aren't taking heed, and are living like nothing has ever happened. Lost my job? No problem I have my unemployment check, and when it ends I'll just go back to work. It's not going to be that easy. Large businesses will be drastically cutting back on staff. A company that had in the past employed 500 employees, will cut the fat, and get rid of the workers who aren't needed. IMO, anyone making over $100k is in jeaporady of losing their job unless they are very valuable to the company. If you're just another cog in the wheel you can expect to be eliminated.
This isn't going to happen overnight, but in five years? I know tecnology companies are ramping up auitomation, and this will contribute to a HUGE amount of job loss. Unless you have the skills to compete in this new environment I'm afraid most Americans are going to be the casualties. This doesn't exclude teachers, fire fighters, and police officers. As less money comes into state coffers, I can see dramatic cut backs. It's going to affect those positions, plus pensions. I can see pension reductions in the near future. I have a cousin in France who retired as an educator, and from what I know about her situation she had a reducation of $100-300 (that's in USD). France, and most of Europe is currently going thru a very difficult time with their pension system as it's been tapped out, and is severly underfunded thanks mainly to hedge fund managers.
In the end, automation, the lack of skillset, COVID-19, Americas finanical system, and people ignorance towards finance will be a HUGE hurdle for most. The rich are going to continue to do well. For many, this will be a very painful time. Do you guys agree or disagree with this statement? Thanks.
Fed Warns of ‘Extraordinarily Uncertain’ Path to Recovery (Published 2020)
Assessing the pandemic’s impact, a Federal Reserve report sees strains on businesses and households and a fragile road back to steady growth and employment.
www.nytimes.com
The path back to economic recovery is going to be a very long one. What will be incoming IMO is the widening wealth gap between the rich and the poor. As more and more middle class Americans move into poverty, we will have a small part of Americans who understand what is taking place, so they will be able to pivot and take advantage of the new financial landscape. Most people though? They aren't taking heed, and are living like nothing has ever happened. Lost my job? No problem I have my unemployment check, and when it ends I'll just go back to work. It's not going to be that easy. Large businesses will be drastically cutting back on staff. A company that had in the past employed 500 employees, will cut the fat, and get rid of the workers who aren't needed. IMO, anyone making over $100k is in jeaporady of losing their job unless they are very valuable to the company. If you're just another cog in the wheel you can expect to be eliminated.
This isn't going to happen overnight, but in five years? I know tecnology companies are ramping up auitomation, and this will contribute to a HUGE amount of job loss. Unless you have the skills to compete in this new environment I'm afraid most Americans are going to be the casualties. This doesn't exclude teachers, fire fighters, and police officers. As less money comes into state coffers, I can see dramatic cut backs. It's going to affect those positions, plus pensions. I can see pension reductions in the near future. I have a cousin in France who retired as an educator, and from what I know about her situation she had a reducation of $100-300 (that's in USD). France, and most of Europe is currently going thru a very difficult time with their pension system as it's been tapped out, and is severly underfunded thanks mainly to hedge fund managers.
In the end, automation, the lack of skillset, COVID-19, Americas finanical system, and people ignorance towards finance will be a HUGE hurdle for most. The rich are going to continue to do well. For many, this will be a very painful time. Do you guys agree or disagree with this statement? Thanks.