Posted by: Dr Pano Kroko | July 11, 2013

Jobs vs Wealth Creation

Winston Churchill

Winston & Love

 

Our quest for  full employment is hounded by the obstructions placed on the road from the newly found evangelism of the managerial classes of the mega Corporates, and their short termism or rather blindness and deafness to what’s coming up next… That’s why I call them ”The Frozen Middle” because they simply want to invest in non human capital as their dying wish.  They would even go whole hog to capital intensive robotic endeavours, and pure automation and other exotic mechanisms in order to succeed in the exclusion of workers from the means of production. 

Ostensibly this is done for reasons of profitability — yet we all know how often the short term benefit leads to long term peril.

And this is not an economic trend slated simply for corporate shareholder’s interest and quarterly results. Nor does it lead to any noticeable increased profitability. In this time of record profits and equity values, we see it is about a far larger trend. It is simply about eliminating jobs, or dumbing them down in order to reduce labour costs long term. As the old beard Carl Marx once said: I see many wonderfully useful inventions and innovations making many people useless. 

This is what’s affecting the middle class and the world. Corporations aren’t in the business of creating jobs for people no matter their age. Young people are cheaper. And businesses don’t need as many high-skilled, high-paid individuals because they can better scale their abilities across their entire organization thanks to our wonderful collaborative and knowledge sharing technologies. Smaller numbers of workers creates sustainable businesses but not necessarily sustainable communities. The plain fact of the matter is that we have the resources, the means, to provide everyone on the planet with whatever they need in terms of clean water, food, shelter, etc to live in healthy communities. We don’t do it because the way we run markets means we constantly have to create scarcities and shortages, we have to reign-in our incredible engines of abundance. The paradox is that we have the resources to give people all the means to have a great life but we don’t have the means to give everyone a job. It seems we have the equation backwards

Nobel Prize winning economist Paul Krugman offered in his speech in Shanghai back in 2009, that although the global economic downturn was stabilizing, the stability was at a very low level, and a recovery was still very far ahead…
We now see that he was quite right on all that.  Still  Paul Krugman — the Princeton University Nobel Prize winning economist, further stated:

”The problem with us progressives at this time of crisis is not that we lack an alternative paradigm to pit against the discredited neoliberal paradigm. No, the elements of the alternative based on the values of democracy, justice, equality, and environmental sustainability are there and have been there for some time, the product of collective intellectual and activist work over the last few decades.

The key problem is the failure of progressives to translate their vision and values into a program that is convincing and connects with the people trapped in the terrible existential conditions created by the global financial crisis. This fluid process is preeminently political. It requires translating a strategic perspective into a tactical program that takes advantage of the opportunities, ambiguities, and contradictions of the present moment to construct a critical mass for progressive change from diverse class and social forces.

We must look at the political experience of the global progressive movement in order to understand why our side has been derailed and how we can fight back to political relevance. The experience of the Obama presidency is rich in this regard. In the U.S. political context, Obama is a social democrat, and the broad left supported his candidacy. Although he was no anti-capitalist, still we expected that he would initiate a program of recovery and reform similar in ambition to Roosevelt’s New Deal. The electoral base that brought him to power, which cut across class, color, gender, and generational lines — was full of potential. Obama’s ability to bring this base together on a message of change achieved what was then thought impossible — the election of an African-American as president of the United States — and showed how smart political leadership can shape social and political structures.

Two years after his spectacular electoral victory, President Obama and the Democrats faced a rout in the U.S. polls. Indeed, Obama and his party are like a rabbit on the railroad track that is hypnotized by the light of an oncoming train. Whereas Obama seemed to do all the right things in his quest for the presidency, he seemed to make all the wrong moves as chief executive.

His prioritizing of healthcare reform, a massively complex task, has been identified as a key blunder. This decision certainly contributed to the debacle. But other important factors related mainly to his handling of the economic crisis, a primary concern of the electorate, were perhaps more critical.”

So it is also a predatory nature of politics that contributes to this downfall of employment. A certain fashion…. that will soon change when the wind blows and thus expose the innate problems of this unreasonable thinking and action matrix. So the best hope for all and especially for Society is to willingly engage in more private Enterprises not only to stave off the possibility of unemployment but in order to thrive in this challenging times.

Or as an other awesome thinker, doer and political practitioner offered:

“Some
people regard private enterprise as a predatory tiger to be shot.
Others look on it as a cow they can milk. Not enough people see it as a
healthy horse, pulling a sturdy wagon.”
― Winston Churchill

Yours,

Pano

PS:

Never forget: the secret of creating riches for oneself is to create them for others.
Main Image
Enjoy the balmy weather, your boat ride through life, your work and your enterprise…  with good friends cause that’s the true wealth you’ve got.
PEOPLE…
And great people are the True Innovation any new company needs to thrive.
So don’t you ever, skimp on that incredible resource.
People are the Human Capital that can create all other forms of Capital out there.
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