4 ms·

The difference is that the wealth from cost-cutting (automation/outsourcing) isn't shared with the middle class, but instead goes to the capital holders. If yo

The difference is that the wealth from cost-cutting (automation/outsourcing) isn't shared with the middle class, but instead goes to the capital holders. If you look at the rise of the middle class in America it was from new service businesses flourishing, where skilled laborers could gain wealth. As the wealth gap grows, debt encumbers more young families, and the middle class shrinks, there is less disposable income to spend on services.

tracker1 7y ago
I think there is still quite a bit of growth in trade work (building/construction, etc). It's not easily outsourced and pays pretty well. Outside of that, I think we'll reach a point where Software Development as a craft is pushed down in terms of skills for those that don't keep up with ever changing trends. A lot of the middle class is being pushed out, and their pay will go down relatively speaking as "minimum wage" legislation pushes into law, while businesses have been relatively rapidly increasing prices outpacing any wage increases. As to TFAs mention of housing, while the market crash was a disruptive event, it mostly caught those who over-spent. For those who bought planning to stay at least 5-10 years, it didn't change too much. Although when your mortgage is 2x your neighbor who bought at the bottom it may sting. But if you bought at what you could afford, you should be fine. Investment is generally a risk. People tend to want guarantees and it doesn't ever really work that way.
malandrew 7y ago
> The difference is that the wealth from cost-cutting (automation/outsourcing) isn't shared with the middle class As an engineer with equity in the company I work for, I benefit and I'm middle class. I think there is also a misconception about how much the capital holders actually gain. A lot of automation is deflationary in the sense that it reduces the cost of production, which in turn allows a reduction in the price a product is sold at to capture market share. This allows the firm that is automating to capture a large piece of that market, but at the cost of making that market a lot smaller unless demand is pretty much unbounded. You have to both automate and grow the market for what you've automated to truly make it big.
- AstralStorm 7y ago
  And hope the market has no natural bound or is at risk of getting obsolete. Even where automation is not involved, you can get choked by lack of qualified manpower. This is already happening in the USA, stopping the brain drain from elsewhere. (Especially with the immigration policies.) Outsourcing is essentially growing external competition by your own hand.
deleted 7y ago
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tracker1 7y ago

I think there is still quite a bit of growth in trade work (building/construction, etc). It's not easily outsourced and pays pretty well. Outside of that, I think we'll reach a point where Software Development as a craft is pushed down in terms of skills for those that don't keep up with ever changing trends. A lot of the middle class is being pushed out, and their pay will go down relatively speaking as "minimum wage" legislation pushes into law, while businesses have been relatively rapidly increasing prices outpacing any wage increases. As to TFAs mention of housing, while the market crash was a disruptive event, it mostly caught those who over-spent. For those who bought planning to stay at least 5-10 years, it didn't change too much. Although when your mortgage is 2x your neighbor who bought at the bottom it may sting. But if you bought at what you could afford, you should be fine. Investment is generally a risk. People tend to want guarantees and it doesn't ever really work that way.

malandrew 7y ago

> The difference is that the wealth from cost-cutting (automation/outsourcing) isn't shared with the middle class As an engineer with equity in the company I work for, I benefit and I'm middle class. I think there is also a misconception about how much the capital holders actually gain. A lot of automation is deflationary in the sense that it reduces the cost of production, which in turn allows a reduction in the price a product is sold at to capture market share. This allows the firm that is automating to capture a large piece of that market, but at the cost of making that market a lot smaller unless demand is pretty much unbounded. You have to both automate and grow the market for what you've automated to truly make it big.

AstralStorm 7y ago
And hope the market has no natural bound or is at risk of getting obsolete. Even where automation is not involved, you can get choked by lack of qualified manpower. This is already happening in the USA, stopping the brain drain from elsewhere. (Especially with the immigration policies.) Outsourcing is essentially growing external competition by your own hand.

deleted 7y ago

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