3 ms·

Millions Are Tumbling Out of the Global Middle Class in Historic Setback

42 points by AndrewBissell 6y ago

bopbeepboop 6y ago
The WEF believes we need a “Great Reset [to Serfdom]”. Long term, QALY negative lockdowns that never were in line with medical practice from WEF politicians make sense through this lens.
nicbou 6y ago
This is not a well-written article. i still do not understand why exactly ths middle class is contracting beyond "it's the virus", what consequences it will have, and how serious it is. I do love that they considered more than just Europe and North America, but I wish they taught me anything.
- fogihujy 6y ago
  This has been going on for years, but growth in low-income countries has compensated for the midle-class shrinking in higher-income countries. Until now, that is. As for seriousness, this is bad. Many peoples are seeing their dreams crushed, their future plans wrecked, and their job security taken away. It will turn many against what they see as rich people profiteering on others' misery. Furthermore, our economy is based on perpetual growth, and if middle-class consumers stop consuming, then growth will stagnate, debt will start piling up, and various bubbles start bursting.
- redis_mlc 6y ago
  > i still do not understand why exactly ths middle class is contracting beyond "it's the virus", what consequences it will have, and how serious it is. The lack of business savvy in HN readers is shameful - it's like everybody here is a communist. Small business people have to stake (save) or borrow (against their house) money personally to start a business. Any small business person who leased a storefront or restaurant location in 2020 has been ruined financially - millions of people in the US. They are not eligible for unemployment benefits, and have no parachute besides family and friends. Without a stake for their next business, there is no comeback for these people. Either they get a W2 job, take early retirement if possible, or they commit suicide. And the latter is more likely for older business people. To help programmers imagine the above better - if you quit your job tomorrow, how many months of runway would you have before your startup fails?
buyx 6y ago
Then, in early March, the country recorded its first Covid-19 infection and imposed a strict lockdown that would contribute to South Africa’s biggest economic contraction in a century. By July, Kganyane’s employer, one of the country’s largest clothing retailers, was facing bankruptcy. She was laid off..." I'm assuming that she worked for Edcon, which was doomed well before Covid and the lockdowns, as a result of a disastrous private equity buyout by Bain Capital in 2007. https://www.businessoffashion.com/articles/finance/bain-exit-leaves-edcon-struggling-in-south-africa-retail-slump https://www.businessoffashion.com/articles/finance/bain-exit... It makes me suspect that there is an ideological axe being ground in this article.

42 points by AndrewBissell 6y ago

The WEF believes we need a “Great Reset [to Serfdom]”. Long term, QALY negative lockdowns that never were in line with medical practice from WEF politicians make sense through this lens.

nicbou 6y ago

This is not a well-written article. i still do not understand why exactly ths middle class is contracting beyond "it's the virus", what consequences it will have, and how serious it is. I do love that they considered more than just Europe and North America, but I wish they taught me anything.

fogihujy 6y ago
This has been going on for years, but growth in low-income countries has compensated for the midle-class shrinking in higher-income countries. Until now, that is. As for seriousness, this is bad. Many peoples are seeing their dreams crushed, their future plans wrecked, and their job security taken away. It will turn many against what they see as rich people profiteering on others' misery. Furthermore, our economy is based on perpetual growth, and if middle-class consumers stop consuming, then growth will stagnate, debt will start piling up, and various bubbles start bursting.
redis_mlc 6y ago
> i still do not understand why exactly ths middle class is contracting beyond "it's the virus", what consequences it will have, and how serious it is. The lack of business savvy in HN readers is shameful - it's like everybody here is a communist. Small business people have to stake (save) or borrow (against their house) money personally to start a business. Any small business person who leased a storefront or restaurant location in 2020 has been ruined financially - millions of people in the US. They are not eligible for unemployment benefits, and have no parachute besides family and friends. Without a stake for their next business, there is no comeback for these people. Either they get a W2 job, take early retirement if possible, or they commit suicide. And the latter is more likely for older business people. To help programmers imagine the above better - if you quit your job tomorrow, how many months of runway would you have before your startup fails?

buyx 6y ago

Then, in early March, the country recorded its first Covid-19 infection and imposed a strict lockdown that would contribute to South Africa’s biggest economic contraction in a century. By July, Kganyane’s employer, one of the country’s largest clothing retailers, was facing bankruptcy. She was laid off..." I'm assuming that she worked for Edcon, which was doomed well before Covid and the lockdowns, as a result of a disastrous private equity buyout by Bain Capital in 2007. https://www.businessoffashion.com/articles/finance/bain-exit-leaves-edcon-struggling-in-south-africa-retail-slump https://www.businessoffashion.com/articles/finance/bain-exit... It makes me suspect that there is an ideological axe being ground in this article.