Home – New Forums Starting your journey Mindset and not just the interest rate alone will help lower unemployment Reply To: Mindset and not just the interest rate alone will help lower unemployment

#1179850
checkvault
Member
  • Total posts: 112
Up
0
::
My Guy, post: 210215 wrote:

First of all I think there are plenty of business out there already

Are there? Okay there may be plenty of businesses out there, but in comparison to the demand of full time jobs and the available skill, are there enough? And this demand is only going to increase. All the students at university, in school, they’re going to need jobs one day. Here’s certain points which I think we must consider –

1. Number of students graduating with skills is increasing every year
2. The retirement age is being increased.
3. Global markets are more and more competitive
4. Increasing automation is replacing human labour with mechanical or computerised labour.

Now if you see these points in isolation, they look alright.

1. It’s good to see that more and more students are being educated and graduating every year.
2. With modern healthcare and medicines, the people in the developed worlds are leading more healthier lives. And hence can work for longer. (This is a debatable issue, so I won’t ponder on this much).
3. Competition is good. It encourages innovation and keeps prices in check.
4. Automation throughout history has allowed humans to leave manual and circular labour to mechanised energy or computerised minds thus leaving more time for learning and improving living standards.

But then if you combine these together, they don’t create a good mix.

1. With the rate of people entering the work force increasing and the rate of people leaving the workforce decreasing, simple arithmetics will tell that if the number of jobs is kept the same, not everyone entering the work force will have a job.
2. Competition is good, but with complex global economies like in this modern era, competition is driving prices so low that it causes economies where labour is expensive to shut down. This can be seen in the Australian automobile industry. With international prices and pressure from global auto companies, coupled with the high costs of doing business in Australia, the numbers won’t add up and hence companies cannot run. Thus leading to an even lower availability of work.
3. Automation isn’t as mainstream yet, but that doesn’t mean it is a while away. The video on youtube called ‘Humans need not apply’ is very good in explaining this. So, eventually, the availability of jobs will decrease even further being replaced by automated machines.

But history has enough evidence to show that similar environments have happened in the past. In some cases, history can tell us that things don’t end well (World Wars I and II), but in other cases it shows that these environments forced us to tap into newer ideas and thus crease better livelihoods and new jobs – Some of the job roles available today were not available 10 years ago.

So the last point there is what I feel is most important. Do we want to wait till it’s absolutely necessary to think out of the box and innovate. I’m not saying innovation isn’t happening. It is. A lot of it. But I feel it isn’t as common. I don’t see students at school being taught ways to be innovative. I don’t see them being tested in business environments and making a product work or sell. I don’t see university students studying to solve world problems.

So this is what I meant by mindset. Every boy, girl, man, woman should feel that even if there is no work available, I will be able to work for myself and still make a living.