Wages Won't Go Up Any Time Soon

29일 전

Hey Jesslaves

When we're born, we're told that we will be able to learn skills that will earn us a living wage and from it, we will be able to build our little place in the world. Have a home, raise a family, travel the world and work your way into having anything you want.

Trading your skills for money, the better your skills, the more the value you can get and the quicker you can attain personal and financial freedom.

Unfortunately, many of us don't work in markets where we can dictate our income based on our skill level and improvement thereof. We work in markets where we get a fixed rate vs the 8 hours we spend completing rudimentary tasks.

Wages have not kept up with the increase in inflation, and each year, more of your paycheque is stripped away from you through various taxes, levies, fees and financial tools.

Dancing around the real problem

I often find it amazing how people would spend so much time debating things like the gender pay gap or the minimum wage none of which affects the situation as much as the fact that overall wages have flatlined.

Human capital is the most costly expense for any company and because workers expect to be paid more for their labour each year regardless of performance or what they output as a whole companies try to cut down on it.

Since most workers remuneration isn't directly tied to the performance of the company they couldn't care less about income, net income and the balance sheet, they want to see an extra few bucks on their paycheck each year.

Financially it doesn't make sense for a company to pay more for a task that they could pay less for, so they keep wages flat, disgruntled employees leave, and a new one takes their place at the old rate of payment. Unfortunately, most modern jobs are pretty replaceable; it doesn't take much unique skill and can be replicated by several people all willing to do it for a little less.

Keeping capital away from wages

Image source: - thedailyblog.co.nz

Outsourcing

Due to the internet, we've opened up the global economy, and companies now have access to labour from all over the world. A company can ship in immigrants willing to work and earn a low salary with the fear of deportation and going back to their old lives.

Alternatively, they can set up operations in countries with cheaper labour costs and cut down on human capital expenditure.

Investing in automation

Outsourcing was one way of reducing labour costs, but companies are always looking for scale and to trim a little more off the wage bill. Now with the introduction of automation and AI, they can take specific tasks and allow bots to do it at a fraction of the cost. Allowing them to work 24/7 without any performance restrictions and eliminate human error.

Cash hoarding

Companies also prefer to hoard cash these days and use it to buy back stock to quickly inflate their value.

Why would they want to spend on retaining talent and producing better output in service for customers on the off chance that it will improve share prices when you can just buy back shares and drive up share prices? The path of least resistance and better financial results will always be taken, even to the detriment of others and society.

Spending on ancillary benefits

Instead of adding more wages to peoples paycheques and reducing tax burdens companies prefer to spend on benefits like free food and transportation for workers. While this does drive up the convenience factor for workers, it's effectively money that could have gone to higher wages.

Big corporate and big banks make for smaller wages

We've given over power to big corporates and banks and they have full control over how our lives are run. They dictate wages, prices and how we live as a society.

The elite can continue to extract wealth from the working population as long as they don't become disgruntled or wake up and realise that services, products and finances all need to be spread and decentralised.

That without healthy competition and alternatives markets cannot become efficient.

Let's connect

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I also believe govs try to keep a certain amount of unemployment to help keep wages down.

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Yes they do through tenders and state-owned enterprises, that don't actually drive value they run at losses and are tax burdens but they reduce unemployment. Also the reporting isn't very accurate they don't say how many are employed on a living wage but how many are employed, some are working 20 hours a month and hardly surviving so it doesn't tell a full story.

In addition, unemployment stats also don't take into account people who retire so as more people retire they are technically unemployed and not providing value but living off savings or the state

Really nice post there is so much truth in it! Especially your Last words reminds me why i invested in btc, we give our power to banks and the elite ist continuing growing up their wealth. Maybe btc will change the place of wealth a little Bit ;)

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Thanks, and yes I agree that crypto has the possibility of disrupting the system that if these elites don't get their hands in it first and while they can manipulate the price and regulate people away from using it they cannot stop it.

I don't see it replacing their system but I see it as a balance against poor management where people can move their capital too in case of issues. I keep investing in both my local currency and foreign currency too because I think it's important to make sure you don't keep more than 10% of your net worth in any one asset. It just makes you vulnerable to the effects of others and thats what I hope crypto will bring soon enough once its a large enough asset class.

I do see this as a multitrillion-dollar asset class and I can totally see 1 BTC being worth $1 million one day

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Yes i think some of them are accumulating Crypto right now but a small group.. hopefully ;)
I agree a lot also that you should not Put all your money in one asset. I do Not Invest in other things Like Crypto but that ist Just because i do Not have so much money than people who works ;)
I think Bitcoin will surpass 1 millon after the next bullrun maybe 2025 or something like this. But i am shure it will at a time.

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They surely are and then dumping at certain points once they get a return they are happy with, the market is small so manipulation from large capital investors is easy to pull off in this space.

Well, I don't see it being as how much money you have but how effectively you use it, returns compound over time so if you have small stakes in various things you can get great returns overall over time.

wow 2025 thats pretty close, lol I think I should be planning my retirement then if Bitcoin is to hit a million and if the dollar still has any sort of purchasing power that is similar to today. Then I can cash out sort my life out, put some back into the market and continue on :) Would be a dream for me

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Yes i think so too. But i think an adventage of a small marcet is that we are early investors :) thats right time is maybe the most important Thing while investing.
I also Plan to Put my imaginary profits in crypto again the next bear market. But i also think the Dollar will be there in 2025 and has maybe a lower price compared Ro other currencies.
Lol you wrote me but i did not see it. So you use the partiko App? Since Yesterday i can upvote and make posts but i do Not See when Somebody writes a comment or upvote. I Just See the Numbers of upvotes in my Post...

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Yes, I agree! I used to think I was too late to the party when I got in at mid-2017 but I made a fair bit of money in the last bull run but reinvested it so I'm tied down to the next one which I don't really mind. I'm in it for the long run and I think that the moves I've made will pay off if impatient enough and committed enough to it.

While it would be nice to have a lot of fiat from my crypto I'd love to just be able to have crypto with a strong buying power that allows me to purchase goods and services straight without having to convert, I think that's really the end goal.

I don't use @partiko anymore, they have not released new features in 5 months so I switched over to @esteemapp which has been adding new features all the time and I prefer it, the notifications also work much better. You can check it out here - https://esteem.app/

Partiko server doesn't always update in real time so you can miss notifications.

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