2 ms·
I see what you're saying, but I think you're underestimating the effect of job loss, wage reduction, and general economic hollowing out. The thing that makes i
by api 8y ago
I see what you're saying, but I think you're underestimating the effect of job loss, wage reduction, and general economic hollowing out.
The thing that makes it impoverishment is that our economic system is inflationary. It's designed for a world where everything always (over time) goes up: stocks, wages, prices, etc. Whether or not that's a good idea is a completely separate discussion but it's something we came up with to deal with deflationary problems during the first half of the 20th century and there it stands.
Globalization and automation are extremely deflationary. High technology is extremely deflationary. They place extreme downward pressure on wages. But we still operate our economic system as if everything always goes up.
So... college tuition goes up. Housing goes up. Health care goes up. Energy and food go up. Anything with pricing power goes up. Wages don't, especially unskilled wages in the interior where you have the double whammy of regional labor oversupply and lower skill levels.
The crunch is real and extreme. Many of the other things you mention are effects, not causes. The addiction epidemic in America's interior reminds me a lot of the alcoholism and drug addiction epidemic that followed the collapse of the USSR.