Everyone agrees that 'supply' and 'demand' drive market forces.
When the economy is strong, the numbers in the workforce generally increase.
And conversely, when the economy contracts, there is a decrease in the
workforce.
Another factor is the number of people available to work plus skill levels
of all available workers.
Putting these two factors together you can see 'supple' and 'demand' in action.
Add in another factor, computers or robots, and you have less need for workers
where machines can replace humans.
Then, understand the move towards a world economy where money and companies
move to where labor is plentiful and cheaper. The USA lost workers to Mexico.
Then Mexico lost workers to China. China is losing workers to Indonesia. And
Africa is the next move.
These moves take decades. So you can expect USA companies to use foreign labor and
foreign manufacturing for decades --- unless the Federal tax code favors doing business
in the USA.
What causes unemployment? In general, poor economic times plus the cost of labor
and doing business around the world.
What is not being said is OVER-POPULULATION. When people who usually had
10 to 16 children with expectations of only 1 or 2 living long enough to have
children of their own --- to start to have all their children living long enough to have
children, the result is an explosion of population of very poor people. And when
world aid comes into the picture these people living in an area which can support
only "X" population, now has "2X" population, the land is used up un-responsibily.
Over-population is the biggest cause of unemployment. Then couple that with a lack
of basis education and you get unemployed people without skills. This is the most
important reason for poverty.
Poverty that is being maintained by over-population and world food aid will eventually
cause a world-wide destruction of the land and loss of people. The Earth can support
only so many people. When we reach a tipping point, the Earth will respond with
a disease that will reduce the population across all class levels.
We have already seen new bacteria that is resistant to our medicines. Bacteria evolves.
Eventually, bacteria will be the leveling factor if we do not take steps now to reduce
the population.
While I do not support the China regime, their one child per couple law has helped to
reduce an exploding population - unlike India which is growing exponentially.
Poverty in today's world is in a large part - man-made.
We need to reduce the world's
population and we need to raise the world's minimum
level of education so that all people can read and do basis math. That will go a long
way towards reducing poverty.
And that's the way I see it...
Straight Talk with Jay Clifford.
