Friday, August 26, 2016
Analyst says private sector will never recover
“The private sector will never recover, it will never multiply money again,” he told Epoch Times in an interview. His main theme is the “declining return on humans,” which means that in today’s digital world, normal humans don’t grow productivity fast enough to justify more jobs and higher wages as the machines are taking over.
“There is no productivity on a global basis. Secular stagnation, technological shifts, monetary policy, all are suppressing productivity growth rates,” he says. But what about technology making humans more productive? Shvets says this was true in the first and second industrial revolution where displaced jobs such as horse-cart drivers eventually morphed into higher tech and higher productivity ones like the taxi driver.
However, in this, the third industrial revolution, machines are not augmenting humans, they are replacing them. The self-driving car will completely eliminate the driver. And even in the previous more mechanical industrial revolutions, it often took decades for productivity growth to recover and for jobs to come back, only after higher productivity sectors dominated the majority of the economy.
These are the themes I have been expounding on for a couple of years. You simply cannot apply the past paradigms going forward. This is a very dangerous time because if you do not understand what is happening, and most people do not get it, you will make decisions based on information that will no longer work going forward.
You simply must cut back on consumption, develop alternate income streams, and continuously educate yourself. Change is happening and it is not going to stop because you do not like it or it is uncomfortable for you.
If you are in a profession like truck driver, which is going away in five years, than get a new profession now. You must adapt or suffer the consequences. Politicians and government will not save you and your fellow man does not really care about your problems as he has his own.