Let me give you an American opinion on America’s current economic situation.
An additional 3 million people applied for unemployment benefits last week, bringing the total number since the start of the pandemic to a staggering 33 million. How much is this in context? The working population of the United States is 165 million people. 33 million people mean that 20% of the working population is currently unemployed.
But even this is an understatement. Here’s another thing to think about. These numbers mean that the ratio of employment to population has fallen to fifty percent. This means that only half of the American population currently has a job.
These numbers are so serious that they make economists think. They have no modern parallel at all, they have nothing to compare with. They point to emerging depression — call it crown depression — which is likely to be bigger and stronger than the Great Depression. This is because even the Great Depression had a New Deal. America has nothing instead.
The crown – or rather, the lack of reaction to it, is likely to complete the destruction of what remains of the American economy. America will ultimately become a country with constant lower levels of all of the following indicators: employment, income, savings, trust, happiness, assets and so on. America was already in the process of impoverishment, with a failed policy, but the crown would accelerate and complete America’s gloomy transformation into a poor country.
I know this sounds incredible, perhaps even absurd, to some. Let me explain how and why.
All remaining jobs are “low-income jobs” offered by mega-monopolies (food delivery, driving cars and walking pets). But they do not provide stable incomes, benefits, guarantees, promotions, career growth, etc. When the labor force of the economy … goes nowhere … what future can it have?
This brings me to the second transformation of depression. This is already happening in America. Yesterday’s, if not prestigious, but somewhat decent jobs were already replaced by new, terrible “performances” that modern American techno-capital offers – to drive Uber, deliver Instacart, sell pallets on Amazon – but the crown accelerated this transition en masse. Megacorporations are not going to magically hire a huge number of people after they learn that they can do less and cost less to hire workers. But lower hiring across the economy means that workers have less ability to negotiate. Explosion! Revenues are falling! What is the net result? Society is getting poorer.