Quote:
Originally Posted by Stu from NYC
I believe you are overlooking something.
As we continue to industrialize new jobs are created with higher pay offsetting a lot of the jobs that have been lost. Those people are buying products and services.
Also think that if we continue with labor shortages we will come to the conclusion we should invite people with necessary skills to become citizens. Higher taxes will discourage that.
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unfortunately, the data doesn't support the future industrialization of production. Note the cash flow use graph below from BOA/Merrill Lynch research. Note the intangible(software) / PPE shrinking, in the 1990s, it was up to 60% of cash flow. Today, 40% of cash flow. But look at the percentage in stock buybacks / which isn't creating jobs, but enriching mgmt from 5% in the early 90s to almost 30% of cashflow today. .
Labor shortages will be self correcting, but will take time.
Construction average age in the 90s was about 32+ yo, today its about 42+ yo. . young people wanting to get into tech chasing the glory of yesteryear. . you can bring in external labor, but then you have a larger unemployment pool as the tech wannabes have to be supported. . .
Also, take a look at the graph in the link below:
The percentage change is negative most of the time, meaning labor is being replaced by machines or being offshored. . . not my decision, Sr mgmt decisions
Business Sector: Labor Share for All Workers | FRED | St. Louis Fed
time is running out on the labor market unless you are in a high demand trade. .