Don’t Get Left Behind.
You’re working more for less. Invest.
If you read our previous article, Social Capitalism & the Millennial Mindset, you’d understand that we’re currently living in a society that is engulfed by Capitalism and hyper-competitiveness, and it might be affecting you more than you’d think. Here’s why…
You & I Form Part Of A System
Yep, you and I form part of a Capitalist system, where we’re trained to learn skills and qualify to form part of the society that eventually transforms us into ‘human capital’ to inevitably fit the corporate agenda.
Although that’s all well and good, and will never change, there are some important facts that people are overlooking, these being the increase in competition and the reduction of the hourly return for our services.
From the above graph, it's pretty easy to see that we’re working ‘more for less’, and I mean a lot less. So why has this happened? and will it continue to happen?
Well, the simple answer to this is yes, yes it will continue, and we think there are three reasons for this:
An Over Supplied Talent Pool.
We go to school, we learn new skills, we graduate.
We’re not taking that away from anyone, getting qualified is an achievement that everyone should be proud of.
But just remember, although you’ve done great, there are more and more people doing the same great thing than ever before.
And that my friends, benefits the corporate world more than it does yourself.
…Why?
Because you and I are probably pretty replaceable by many other people who also have similar or the same qualification(s) under their belts.
That replicability makes us highly disposable ultimately keeping wages down.
‘Uwiva! Mhux xorta, inġibu lil xi ħadd ieħor!’
Which Translates: ‘No problem! We’ll just get somebody else’.
Automation.
As we move further down into the future, we can only expect to see more and more technology assisting us in our everyday lives, making our lives inevitably easier.
When tasks become less difficult, a company will rely more on technology as opposed to human labour. Making you and I highly disposable, and not the technology.
Connectivity.
Today organisations have international reach, meaning that the movement of labour has never been made easier. So let’s take an international firm for instance.
If a firm has a shortage of skills, then they can always tap into their international talent pool and recruit labour from overseas. Yep, that's right, the talent pool is huge, and will probably continue to grow.
So why would any company want to pay a premium for something/someone who is highly disposable/replaceable? They probably won't.
Now, now, now, don’t take us badly. We understand that in life you need to work really hard to get to where you want to get, and none of us are special. But, we just wanted to shine a light on the current stance on society.
The Disappearance of The Middle Class
It all comes down to successful Capital allocation, and who owns the Capital.
So as previously explained, technology is making its way into our lives at a rapid pace. Meaning that repetitive, and predictable tasks can be replaced or significantly assisted by technology and automation.
Technology as such is generally purchased by an organisation to increase efficiency within a company, allowing for higher rates of output, and increasing overall profitability. Whereas workers are either made redundant or their wage rates ‘decrease’ due to the higher reliance on technology.
This in essence may be contributing to the disappearance of the ‘middle-class’ and inflating the differences between the social classes in today's society. Because let's be honest, only a few people have the capital to acquire such technology.
leading us to our next point…
Why younger generations are ‘burnt out’.
Let's keep this article generation-specific and focus on why millennials are burnt the hell out, or at least most of them.
The equation is quite simple.
Whilst we’re working more for less, prices are also increasing through high rates of inflation, making it even harder for ‘us’ to catch a break.
Savour on that for a moment.
We’ve already covered the increase in property prices in our previous article, Why You Should Not Invest In Property, and the evidence stands to be pretty clear…
This is exactly why you should consider getting into investing your money SMARTLY.
Further automation may benefit companies at the expense of employees, so your salary might not do too well but your investments may perform well to make up for a possible future shortfall if done SMARTLY.
The only way our salaries could remain competitive is for the government to adopt a more socialist approach, by paying out a standard amount of cash to every citizen per year (financed through taxes) to even out the inequality that this economic development would create.
Although this idea is widely talked about as a future idea for society, it is hardly a certainty for the future. Be cautious, and invest smartly from now to face the uncertainty. Don’t let that wave creep up on you!
To Wrap It All Up …
It’s not all doom and gloom, and we really do have a positive outlook on the future. I mean, we wouldn’t have created this group otherwise.
Through this article, we just wanted to place some importance on what is currently happening in modern society, and why we think it’s important that you and I keep ahead of the curve through effective money management and investment strategy.
By learning how to invest in assets well, you’re increasing your chances of being financially rewarded, by taking calculated and informed risks.
Just remember you’re working more for less, so make the most of your less.
If you’re interested in joining us on our journey, join our Facebook group: The Investment Hub — Malta
Disclaimer:
Any views or opinions presented in this article are personal and shouldn’t be taken/used as professional advice as we are not qualified financial advisors.
Any statistics mentioned have all been linked to their respective documents together with their ownership.
Lastly, we would like to note that this article has no tie to our professional jobs and was conducted in our free time.
