- Joined
- Dec 21, 2010
- Messages
- 19,132
- Reaction score
- 10,409
I've been thinking about this for awhile...
COVID-19 showed just how fragile our economy, business and food supply chain is where it only took 2-3 months to virtually collapse.
Ironically, thanks to COVID-19, I think it's going to usher in the next great pandemic of automation, robotics and outsourcing.
Event #1: Real Estate Collapse - Starting this year and certainly next year, you are going to see a mass closure of big offices since companies have adjusted to a lot of their workforce working from home. The companies that need office space will downsize and have satellite/hotel sites for essential workers. You're basically going to have a ghost town of office buildings and no one to fill them. That will impact the economy, state taxes and the real estate market.
Event #2: Mass Outsourcing - The companies that managed to survive COVID-19 will start looking to recoup their losses from basically 1-2 years of lost profit. The offices are closed and most of their workforce is remote. The execs will start to wonder why they are paying people they don't even know or see in person anymore high wages when they can simply outsource the same work to India or the lowest bidder overseas. Who cares where the work gets done from if we are all remote?
Event #3: Automation/Robotics - For the smaller businesses that pay minimum wage, there is a real possibility that $15 is going to be the new minimum wage soon. We've already seen some businesses decide to flat out close instead of pay their workers high wages. Instead of close, you are going to see those companies heavily invest in things that will reduce their workforce to keep paying the minimum wage and offset the costs. This is beginning now. McDonalds is putting in ordering kiosks. Walmart has installed more self-checkout registers and is testing out robot floor cleaners. There are even some places that outsource the drive-thru calls to India. Truck drivers make up almost 4 million workers in the country and self-driving trucks are currently being tested. it will be the next automotive industry crash.
So basically you are dealing with a situation where there are going to be very few jobs left for people to work from working class all the way to white collar. Now what? If you think the panic from COVID-19 was bad, what do you think is going to happen when you have healthy people that can't find work and need to eat? UBI is an absolute must and it needs to be implemented long before we have this problem. There are some definite concerns with UBI but we aren't going to have a choice. I think eventually you may even need a federal jobs guarantee and the government basically makes up jobs for people to do. In Japan for instance, the government will pay people to hold up Stop and Go signs for walkers. It's completely unnecessary but the alternative is that person wouldn't have a job otherwise and would be homeless. Isn't it better to give them something to do, a purpose in life and a modest income than to have someone sleeping on the street, panhandling, drinking, doing drugs and make the city look good?
It's coming boys. I think just like COVID-19, you are going to see politicians drag their feet and avoid UBI long after it's too late. It'll eventually happen but not after the damage has already been done.
COVID-19 showed just how fragile our economy, business and food supply chain is where it only took 2-3 months to virtually collapse.
Ironically, thanks to COVID-19, I think it's going to usher in the next great pandemic of automation, robotics and outsourcing.
Event #1: Real Estate Collapse - Starting this year and certainly next year, you are going to see a mass closure of big offices since companies have adjusted to a lot of their workforce working from home. The companies that need office space will downsize and have satellite/hotel sites for essential workers. You're basically going to have a ghost town of office buildings and no one to fill them. That will impact the economy, state taxes and the real estate market.
Event #2: Mass Outsourcing - The companies that managed to survive COVID-19 will start looking to recoup their losses from basically 1-2 years of lost profit. The offices are closed and most of their workforce is remote. The execs will start to wonder why they are paying people they don't even know or see in person anymore high wages when they can simply outsource the same work to India or the lowest bidder overseas. Who cares where the work gets done from if we are all remote?
Event #3: Automation/Robotics - For the smaller businesses that pay minimum wage, there is a real possibility that $15 is going to be the new minimum wage soon. We've already seen some businesses decide to flat out close instead of pay their workers high wages. Instead of close, you are going to see those companies heavily invest in things that will reduce their workforce to keep paying the minimum wage and offset the costs. This is beginning now. McDonalds is putting in ordering kiosks. Walmart has installed more self-checkout registers and is testing out robot floor cleaners. There are even some places that outsource the drive-thru calls to India. Truck drivers make up almost 4 million workers in the country and self-driving trucks are currently being tested. it will be the next automotive industry crash.
So basically you are dealing with a situation where there are going to be very few jobs left for people to work from working class all the way to white collar. Now what? If you think the panic from COVID-19 was bad, what do you think is going to happen when you have healthy people that can't find work and need to eat? UBI is an absolute must and it needs to be implemented long before we have this problem. There are some definite concerns with UBI but we aren't going to have a choice. I think eventually you may even need a federal jobs guarantee and the government basically makes up jobs for people to do. In Japan for instance, the government will pay people to hold up Stop and Go signs for walkers. It's completely unnecessary but the alternative is that person wouldn't have a job otherwise and would be homeless. Isn't it better to give them something to do, a purpose in life and a modest income than to have someone sleeping on the street, panhandling, drinking, doing drugs and make the city look good?
It's coming boys. I think just like COVID-19, you are going to see politicians drag their feet and avoid UBI long after it's too late. It'll eventually happen but not after the damage has already been done.