If you enjoy economic blogs it is likely you enjoy reading up on politics too. We often read, and shake our head, at most of the political nonsense that happens day to day but the one thing we read and watch more frequently is “news” about a coming ‘civil war’ between red and blue. We’re not entirely sure how this civil war is supposed to work but if one does come, it won’t be about politics it will be about labor.
Case in point, Northwest Arkansas is offering $10k in bitcoin for people to move into the area. There is a huge labor shortage there and people are desperate enough to offer $10k to move there.
Northwest Arkansas hopes to lure remote tech workers and entrepreneurs to the region by offering them $10,000 worth of Bitcoin (BTC-USD) and a bicycle.
Finance Yahoo
Second case in point, The US Army is now offering largest bonus ever to sign up! Hard to fight a war when you don’t have soldiers!
The Army is seeking to blunt the pandemic-fueled labor shortage rocking the country’s economy with its largest bonus ever — $50,000.
NBC News
Case in point three which rounds out our thesis, ComputerWorld is reporting in a very nicely title article, “In IT, Boomers are out, raises are rising and change is coming” which outlines what we’ve been writing about now since this blogs inception.
With tens of millions of boomers retiring daily and more to come tomorrow and the day after tomorrow, there simply won’t be enough workers to fill the demand.
As of December, there were about 3.8 million IT jobs in the US, with hiring during the past year responsible for one of the largest year-over-year leaps in IT job positions in 20 years.
ComputerWorld
The United States has any problems, some are political and some are economic but the MAIN problem the United States has is a demographic problem. There are too many boomers retiring and not enough young people to replace them. Worse yet, boomers will require larger and larger amounts of health care workers as they get older and sicker but there isn’t enough people all the while consuming while not producing.
Society will need to make brutal choices, take care of the elderly or take care of economic output. Import massive amounts of new labor via immigrants or go without.
We don’t think this is hyperbole, we think it is the new reality and plan on investing in the winning firms that are prepared for this new reality.
Stay tuned and stay solvent…
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