Quote (Black XistenZ @ Sep 12 2021 10:02am)
I dont even think this situation is exclusively due to government handouts and benefits. Sure, this factor plays a role. But to me it seems as if the disruptions associated with covid have created a real squeeze on the labor market for low paying low qualification jobs.
I think employers are just reluctant to do what they didn't need to do for almost 40 years: give girthy pay raises to employees which ostensibly seem easily replaceable. I'm not talking about the puny pay raises of the past which barely covered the ongoing inflation, I'm talking about pay raises which actually give them a bigger share of the pie and cut into the capital side's bottom line.
Most of the shortages we're seeing is in low skill level jobs in businesses which don't have big margins to begin with. A restaurant owner can't afford to go from paying people 15 bucks and hour to 25 bucks an hour because that would literally wipe out all of his margin.
People are ignorantly pretending that if people were paid more than this problem wouldn't exist. It would though, because the employer to stay in business would have to raise goods prices to offset the increase in labor costs. So what happens when all cooks and delivery drivers are making 25 bucks an hour? Well everyone is now paying 20 dollars for a burger and fries when they were paying 12 a year or two ago, so we're at square one of the cycle with low skilled labor needing now 30 bucks an hour for a 'living wage'. Rinse and repeat.
What no one is talking about is what's happening now is totally fucking both the old people and the young people. The old, which just retired or are going to retire very shortly are getting their savings killed because of loss of purchasing power due to inflation, the young because to service this debt is going to damage growth in the future decades. If you're like 60 and have a relatively small nest egg which you thought might get you to 85-90, you may be in for a rude awakening in your high 70s because thanks to government 'help' your purchasing power has been wiped out.
This post was edited by ofthevoid on Sep 12 2021 08:35am