DYSPEPSIA GENERATION

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Older enterprises like Ford and younger ones like Google that form the manufacturing and technology economy of the 21^st century need more tech-savvy workers than universities and community colleges provide. However, even if enough liberal arts and business programs could retool to produce all the science, math, technology, and engineering graduates needed, the remaining programs would still produce many more non-STEM graduates than the economy could absorb.

Similarly innovators often don’t need a lot of money to create valuable new enterprises or expand established businesses. Consider that many young people create profitable apps and marketing platforms on their laptops, and major corporations are flush with billions in cash and too few opportunities to deploy it.

Consequently, established companies and individual investors bid up prices for young enterprises, whose owners wish to cash in on their initial success, and pay astronomical sums for the initial public offerings of companies like Facebook. They bid up prices for stocks, bonds, and collectables, and drive down yields on dividend-paying stocks and interest rates on bonds and CDs.

To generate enough jobs, the economy must create lots of service businesses beyond the ecosystems of manufacturing and technology — everything from restaurants to retirement homes, but government regulations dictating wages, sick leave, and health benefits drive many services offshore. That’s why credit card call centers and even some back office legal services are in Asia.

Modern businesses increasingly need highly intelligent, highly educated workers. Government regulations act as a tariff on employing domestic workers who are less intelligent and less educated, which is why domestic businesses are outsourcing such work overseas where such workers don’t cost more than they’re actually worth economically. Government attempts to make sure that the Underclass make a ‘living wage’ merely ensure that they don’t have any jobs at all.

This entry was posted on Sunday, July 13th, 2014 at 14:14 and is filed under Dystopia Watch. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.