“The best things in life are free, but you can keep ’em for the birds
and bees. Now, give me money, that’s what I want.” (The Beatles, “Give Me Money).
The new America is upon us. Employment, housing, automobiles, groceries, and even toilet paper are now obtained with the click of a button. While the innovation behind that has employed hundreds of thousands, it has left some in the dust. America is the land of opportunity for everyone, yet some aren’t up to it, and that’s okay. As Judge Smails famously said, “Well, the world needs ditch diggers too.” (Caddyshack, 1980)
In the new post-pandemic America, we find a workforce that isn’t filling the needs of static employers. By static, I mean the traditional employers like fast food, restaurants, retail, miners, steel workers, trucking, and a significant portion of America’s past employers that now struggle to find workers and customers. It is an economic firestorm now in which businesses complain about not having workers while refusing to pay a decent wage for the work. It used to be the restaurant could pay $2.13/hour plus tips, but that isn’t as enticing as it used to be. Now those servers want $15/hour plus tips, with benefits. Coal workers accepted short lifespans for a decent living. Now they want a safe workplace and a decent wage. What’s the world coming to?
Millennials and Gen Z are smart. They recognize a raw deal when they see it. So they are starting their own businesses, while leveraging technology and social media to make their way in this new world. I am fascinated by their innovation and work style. For those working for companies, negotiating work hours and teleworking days is the new standard. “Nine to five” at the office is an outdated concept in some industries, although this week I saw that Elon Musk told Tesla and SpaceX employees to come back to the office 40 hours a week or get a new job. Many will take him up on it, I bet. There are benefits to a collaborative workspace, but that doesn’t always mesh with the youthful approach to working.
I am not complaining at all, I’m thrilled by the entrepreneurial spirit that our youth are exhibiting. They need smaller office spaces, smaller copiers, and flexible computing options as just some of the changes the new workplace is embracing. When people say they “can’t find a job,” the Boomers say, “There are ‘Now Hiring’ signs up everywhere!” But is flipping a hamburger for $320 a week, less taxes, really a career? And do you really want to work at a joint where customers attack you if the fries are too hot, too cold, too salty, or not salty enough?
Remember, the world needs ditch diggers too. But today’s ditch digger operates a $100,000 to $500,000 excavator with deft precision. It’s still a hot, sweaty, dirty job, but that excavator operator commands $50 an hour, or $100K a year. Welders routinely make $100K. Every trade is making good money, and there isn’t a ton of competition. The workplace honors what it can’t get cheap.
Police officers are a great, albeit tragic, example. Yes, they put their lives on the line every day. Everyone says they ought to be paid more. But then reality strikes. Most beat cops start at around $30,000. Some agencies require college degrees, but many don’t. Councils hear the need to pay more but with 300 law enforcement officers on the payroll, even a tweak of starting salaries has a huge ripple effect. A $3,000 pay boost equates to at least a $900,000 increase throughout the agency. There goes the millage rate and here come the taxpayers! Same issue with nurses, teachers, and so many other public employees. But when a school district can’t fill teaching slots, something has to give. I’ve spoken with numerous teachers who tell me they don’t recommend to their kids a career in teaching. Interestingly, while pay is part of it, overwhelming bureaucracy is the bigger complaint. The market will adjust. It has no choice.
Any economic system is customer driven. If your service or product is not useful and necessary, it won’t sell, no matter how much you offer or how many you make at any price. The proliferation of technology has created a market where people want their individual needs met.
The final example for today is the automotive industry. Are the days of 500 new cars sitting on a car lot over? I think so. The chip shortage just accelerated the issue, but Americans can now select the car they want anywhere in the country and have it shipped to them faster than a car salesman can try to get a better deal out of his manager. It’s a paradigm shift all over America as individual wants and needs surpass in importance manufacturers’ stockpiles.
Welcome to the New America. We haven’t named this revolution yet, but if it were me, I’d call it the Singularity Revolution.
“They took the credit for your second symphony, Rewritten by machine on new technology, And now I understand the problems you can see.” (Buggles, “Video Killed The Radio Star”)
HHJ News
