According to the government there are about 120 million people working and about 100 million who are able to work but not working.
In a separate report we learn that 20% of families have no working members!
It’s clear that a large chunk of our jobs have been exported to such places as China. The reason is less clear. American workers have a history of being more productive than the rest of the road and this offsets at least some of the lower labor cost found off-shore. We have a relatively high tax rate (on corporations) and this may impact off-shoring of production.
Now Google is projecting that we will lose another 30% of jobs to robots over several years. Remember technology moves faster than people think.
Very quickly we will see more people unemployed than employed and this spells disaster for Social Security.
It also is likely to lead to more social decay, more drug usage and more violence.
We’re going to have to find alternative ways of supporting the non-working population and perhaps even more important we need to come up with fulfilling activity for that non-working population.
Are we facing a Welfare State? Is governmental redistribution of wealth the only solution? Can capitalism survive?
As the workforce declines we will naturally see an even greater concentration of wealth. Fewer and fewer will control more and more of the wealth. This will naturally create more envy and foment rebellion and demands for sharing that wealth.
With fewer and fewer jobs being created the pressure will simply increase.
We can delay this problem by eliminating the corporate tax. But this is only part of the problem. As wages are forced up (higher minimum wage) the adoption of robotics will speed up. Ultimately, we will face the same problem of a massive proportion of our population having no productive work.
We can slow this decline and maybe even stop it by encouraging business. Reduce or eliminate the income tax on business, reduce regulations that inhibit business development and stymie free market competition.
By encouraging free market competition and business development we will see job development and job creation.