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Apocalyptic Economics: How Mass Death Boosts Wages
Featured in Zero Hedge Daniel Drew, 4/7/2015 Tweet To the 99%: Choose your poison: death or unemployment. As Zero Hedge recently reported, a record 93.2 million Americans are not working. The presence of so many people on the sidelines shows the lack of demand for workers and an oversupply of labor. As I have noted previously, some employers like to say there is a shortage of workers, but they are lying. If there were a real shortage, wages would be rising, not stagnating or falling. Three rounds of quantitative easing from the Federal Reserve shotgun of monetary policy have failed to solve the problem. Unfortunately, the most effective solution is a very grim one, and it is devastating and immoral. I'm not advocating this as a solution, but reality cannot be denied: The most effective way to raise wages would be orchestrating World War 3. If a few billion people disappeared, it would clear out the oversupply of labor, and wages would rise. This is basic economics, and history shows it is true. When the Black Plague wiped out a third of the European population in the 14th century, wages increased. Also, during the population boom just prior, wages had been falling. This clearly shows the inverse relationship between labor supply and wages. Once the oversupply of labor was cleared out, the survivors enjoyed a higher quality of life.  Paul Tudor Jones recently warned that enormous wealth inequality will lead to revolution, taxes, or war. He is right. Without some form of government intervention that artificially raises wages and prevents the rich from exploiting the poor, there will eventually be violence. That violence will clear out the oversupply of labor and fix the problem in an evolutionary way. If this happens, you can be sure the war will be quite profitable for the arms dealers and defense contractors. With so many advances in medical science, mass death as a result of an epidemic seems less likely. War will probably be the cause. However, last year's Ebola situation reminds us just how limited we still are. And on Monday, fleas tested positive for plague in Arizona. The economics of the apocalypse are knocking on our doorstep. 5/23/2017 The Big Short 2.0: BlackRock's Consumer Asset-Backed Securities ETF 3/26/2017 Yield Chasers Left Behind As Treasuries Beat Both Investment Grade and Junk Bonds 3/9/2017 Buying The Rumor is 300% More Profitable Than Buying The News 2/25/2017 Index Investing Unmasked: 96% Of Stocks Are Garbage 2/14/2017 The Difference Between F You Money and F Everybody Money 10/11/2016 The Entire 2008 Crash Could Have Been Avoided With One Simple Trading Rule 10/10/2016 How To Avoid Being A Retail Bag Holder 10/9/2016 BTFD! One Chart Shows Why This Is The Only Strategy That Matters 8/7/2016 The Indexing End Game: The Wilshire 5000 Only Has 3,607 Stocks |