Tuesday, November 18, 2014

Inequality and the demonization of the poor

The classic line, "And then they came for me and there was no one left to speak up for me", refers to the last victim of a totalitarian government.  It could easily do for the rapidly shrinking American middle class as it falls to globalization and the outsourcing of many well paying jobs.  With near instantaneous communication, jobs in finance, industry and healthcare will be offshored.  Mechanical substitutes will continue to whittle away lower skilled jobs like bank tellers and airline check in clerks.  Even lower skilled jobs like vegetable harvesting will increasingly mechanized.  The consensus is this is a mixed blessing as there is no increase in employment in newer industries such as the ones which accompanied previous rounds of technological advances.  As capital becomes more and more important and labor less, what will future generations do?  Will there be vast numbers of permanently unemployed proles?  We see indications of that bleak future in today's large number of more or less lifers on the unemployment lines.   In many cases through no fault of their own, these people have been replaced by foreigners or machines and the likelihood of them ever finding work again is vanishingly small.  Instead of solutions to this problem, these people are being demonized as lazy moochers.  It will be interesting to see how this plays out over the next decade, but I think more and more productive people will be experiencing this grim little morality play and the sarcastic comments they made about their unemployed neighbors will come back to haunt them.

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