Working on our personal lives is an ongoing challenge, but we cannot ignore the fact that we live in an interconnected world and that local and global trends effect our income, well-being and happiness. Let me give you my view of where we are; how we got here; where we're going and most importantly, what you can do to improve your economic prospects.
The State of the Global Economy
Increasingly, the human community is linked economically, since large, developed nations depend more and more on global trade. If an important trading partner is experiencing a downturn in their economy, the exporting country sees reduced sales, which translates to fewer jobs, fewer raw materials purchased and the ripple effect is felt worldwide. If a particular population produces fewer educated workers or if the cost of their wages is too high, the jobs they might have had will be shipped to poorer countries, where the cost of living is lower but where a burgeoning youth is eager for education and a brighter future.
And whereas the U.S. used to be able to rely on the broad shoulders of it's hard working middle class to produce steel, timber, coal and durable goods and thereby drive it's economy, these tasks have steadily moved to Asia, where an exploding population offers high productivity at lower cost and the "Western countries", must now compete for marketshare in a new economy, created by the exponential growth of technology.
But these older workers from previous generations, who grew up using their sweat and labor to earn an income, find it difficult to now retrain their bodies and minds to sit in front of a computer screen and contemplate the surreal world of bits, bytes and the world wide web. So the displaced employees that can afford it have begun retiring in droves. Those that cannot, surrender to remaining under-employed in fields where they can still apply some of the skills they have. To facilitate this, they have to downsize. So they sell their family home in the country and move to the city, where the smaller, more affordable living quarters are available and where public transportation allows them to get around more economically .
Meanwhile, their children, now approaching adulthood will fail to fledge by 18 or perhaps even 30. Unable to find suitable work and having no way to pay for the rising cost of the education they need to compete in an increasingly specialized economy, they are comfortable to remain at home until such time as they can pool their resources with a future spouse or a live-in partner and begin an independent life. These young adults, realizing their income already barely stretches from payday to payday are less likely to have children, or if they do, much fewer children then their parents did. So the number of new recruits to the labor force quickly begins to diminish.
As the older generation retires, not only do they start to drain the social services that were intended to be replenished by their children and grandchildren, but they now have need of expensive long term care or medical intervention and their offspring, who have been struggling to start their own lives and families, are either forced to move back in with their parents or reduce the number of hours they work to become part or full time caretakers.
All of these factors, along with costly corruption on Wall Street, higher taxes, the increasing cost of food and fuel among other things is causing previous world powers and economic leaders like the U.S. and Europe to spiral down into debtor states, as a new paradigm rises out of the shadows and dominates the future.
What's Happening in the U.S. and other developed nations?
As I write, the United States and indeed the world is experiencing a financial crisis of unprecedented proportions. It is of course a complex problem, so much so, that even the experts disagree as to how to promote growth, while maintaining stability. It does seem odd that an entity created by humanity can lurch so far out of our control but there are factors beyond mere mathematics at issue here; factors that we cannot easily manage.
First, the population in developed countries is getting older. The average age of the American worker has climbed in the last 20 years by 4 years to almost 42. That may not sound like a problem, but that trend is the same one that now sees individuals reaching the traditional retirement age of 65 as 13% of the population, compared to only 4 percent in 1900. And this shift promises to continue unabated for some time, as a tidal wave of individuals from the "Baby Boomer" generation start reaching their golden years and for a variety of reasons, their children are choosing to have fewer offspring to recharge the pool of labor. This literally means that a smaller and smaller work force is paying into a system that is supporting an expanding group of retirees. It doesn't take a brain surgeon to figure out this is not a sustainable scenario. There is speculation that by the time today's average worker reaches retirement age, the system he will have been paying into all of his working life may be out of money. It's like watching a train wreck in slow motion and there is very little we can do to avert disaster. Concurrently, older folks consume more medical goods and services than their younger counterparts and that is putting a strain on the entire medical industry, from doctors and nurses to medical suppliers, as well as government and private insurance purveyors. Increasing levels of antipathy and stonewalling in government have only made the problem worse.
Secondly, emigration from poorer countries or those where poverty and or terrorist activities are threatening peoples lives has forced richer nations to deal with a huge influx of vulnerable individuals in need of, jobs, medical care, child services, transportation and a place to live. This has placed an additional strain on already teetering economies as they debate whether to absorb the diaspora or force them to return to their countries of origin. But data show that people and families facing poverty and or violence where they live, will do whatever is necessary to survive, returning again and again to safer neighboring lands where they may eventually find the security and opportunity being denied them at home. The interesting flip side of this phenomenon is that it is happening just as work forces in developed countries are shrinking, due to aging populations. So though new immigrants create an initial load on industrial nations, the eager and capable workers may prove to be a salvo for the intractable problem of long term attrition.
A third major reason that many economies around the world are collapsing is corruption. Huge multi-national corporations carry so much weight and influence, they behave more like roving governments than companies, watering down regulation and enforcement through bribes and lobbying so that they can continue raking in huge profits at the expense of domestic populations. Oil companies pollute pristine ecosystems as well as established towns and neighborhoods all over the world, making children sick and displacing residents; pharmaceutical firms promote medicines that cause life threatening side effects; food producers make and distribute packaged items with lots of sugar and salt but otherwise empty calories, that are responsible for a dramatic rise in diabetes in the U.S.; banks rake in loads of revenue by selling bad loans and then profiting a second time by unloading the foreclosed properties after the owners are forced to default; companies across the world respond to their shrinking bottom lines by forcing employees to work harder and for longer hours while keeping wages stagnant or even withdrawing benefits; digital media carriers prey on the weaker aspects of the human psyche, causing an entire generation to become addicted to devices, apps, social media and staying connected 24/7, while continually raising rates and requiring the perpetual purchase of new gadgets and software updates to maintain their addiction.
Finally, it appears that the world's cultures, classes and belief systems are drifting apart philosophically like tectonic plates. As has been mentioned so frequently in the news of late, the gap between rich and poor is widening and the middle class, which actually drives the economy is approaching burnout and loosing economic power while working harder than ever. The idealogical and military wars being waged around the world now makes the cold war of the past seem like the good old days. Extremest views are clashing with Western values, religious and ethnic prejudice is at an all time high and costly conflicts are draining economies as well as wiping out entire generations of young men and women that will never buy homes, start families or contribute to society. Senseless tragedies occur daily that keep the world in turmoil with inhumane actions begetting revenge, upon revenge and no one person, institution, government or miracle seems capable of containing the devastation.
What's happening on the local level
I have noticed in my own community (and I am sure the same is true for the rest of the country), that people are not buying as they once did. This last Christmas, in spite of the cheery numbers that were rolled out for sales, the stores were almost empty: people were staying away in droves. At my local swap meet even, many spaces stand empty, vacated by vendors of all sorts, due to a lack of interest on the part of visitors. Families and individuals are still stopping by for a stroll and some street food, but leaving with nothing in their hands. A sign that shopping has become more of a spectator sport that doesn't necessarily involve any financial transactions. Therefore, this is definitely not the time to start a retail business. And unfortunately beautiful artwork such as ceramics, jewelry and paintings are not fetching buyers. So if you do create items for sale, try online marketing or selling from home, where the overhead is far less.
Where opportunities still exist
If you are entrepreneurial and seeking an arena to ply your talents, one axiom still applies: follow the trends. As the population ages, the need for services that cater to seniors is becoming a hot market. In home care, gardening, light repair, local transportation, food delivery and travel that caters to older adults are all excellent places to research business prospects. Continuing in that category: many medical specialties now offer great opportunities, such as patient advocate, physical therapist, nutritionist/dietitian. pharmacist, medical transport, medical interpreter and the list goes on.
Another trend that shows no sign of slowing is the growth of immigrant populations. Helping immigrants with securing documents, finding work and housing, language instruction and computer training are all areas with a potential. However, because immigrants have few resources initially to spend on services, many of these activities are provided by volunteers. But schools and training organizations do hire personnel to assist with immigrant services, so do your research and see what possibilities exist.
My point is, opportunities are still present, but you have to be more imaginative, flexible and wiling to try different things. Because there are so many looking for work, intangible factors such as dress, being well-spoken, optimistic, creative and having good interpersonal skills often help Human Resource personnel decide between scores of well qualified candidates. When push comes to shove, being attractive and likable will still give you an edge over the competition.
- S.E. Mathias
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