read more Your Place in the New Us And World economy
What is next for the economy? The cheaper defines the boundaries within which all businesses must operate.
Your Place in the New Us And World economy
Like the lines on the edges of the road, cross at your own risk. All businesses - and therefore all jobs in the inexpressive sector - must operate within ("length" and "width") of these boundaries. Company failures occur when clubs fall behind the times and are too far ahead of buyer demand. Likewise, most Company sectors have a relatively narrow range of thriving operations. It's hard to survive if you are whether the most high-priced or cheapest in your market.
The 2010 book from David Wiedemer, PhD, Robert Wiedemer, and Cindy Spitzer entitled "Aftershock" examines the events that created the financial meltdown. In this book and the previous book, "America's Bubble Economy" the authors make the case that the U.S. cheaper was an illusion, only the interaction of "bubbles".
A bubble is created when an asset temporarily booms. The previous (pre-2008) U.S. cheaper was comprised of bubbles in real estate, personal loans, reputation card debt, the stock market, and buyer spending. On their own, each bubble can rise independently. But in combination, the bubbles accelerate and reach unnatural levels!
The financial meltdown felt colse to the world is the consequence of these bubbles popping, or as the authors narrate it, a "Bubblequake". The first stage of the financial meltdown included the fall of the real estate bubble, inexpressive debt bubble, stock shop bubble, and discretionary spending bubble. On their own, each would have been significant. Combined, these popping bubbles lead to "The Great Recession".
Amidst the economic turmoil, the U.S. Government tried to intervene. Bailouts of automakers and speculation banks were designed to compensate for "toxic assets". Then the government pumped billions into the cheaper as "stimulus" to try to offset the funds lost to "money heaven" as bubbles popped and wealth simply evaporated.
Looking back, we now know that such efforts were ineffective. The results were a dramatically inflated money supply and a devalued dollar. The aftereffect was that the government soon reached the "National Debt Limit" as a succeed of spending nearly twice as much as incoming revenue.
The authors label this current stage as the "Aftershock", defined as the popping of the dollar bubble and the government debt bubble. Their closing is that current economic conditions do not simply record a down shop cycle or a typical recession. The incompatibility is the multi-bubble economy, with these inter-linked bubbles All on the descent.
The authors also cease that inflating these bubbles again is simply not possible.
Instead, they predict what is called the "triple double-digit" economy:
Double-digit unemployment Double-digit inflation Double-digit interest rates
All in all, these make up some dire predictions. So what does this mean for you? How will you earn an wage in the new, post-Aftershock economy.
The "Aftershock" authors predict:
1. Decreased interrogate for capital goods, along with cars, construction equipment, and major market equipment. Lower interrogate means fewer viable firms and fewer ready jobs.
2. Decreased levels of discretionary spending. This affects fine dining, entertainment, travel, fashion, jewelry, art and so on. Less total spending means fewer market and fewer employees.
3. A decline (just not as drastic) in the "necessities" sector along with condition care, education, food, and government services. Even these areas will face some pressures to downsize because they are very dependent on tax revenues. A smaller cheaper simply produces lower tax revenues. Some programs will simply need to shrink, regardless of the level of "necessity". Many jobs will be retained, any way the wage increase and benefits will necessarily be constrained.
Conclusion: as many as 50% of businesses in some sectors may simply disappear. This means that job losses will be foreseen, after the dollar and government debt bubbles pop, and there will be a mad scramble for those jobs that haven't been destroyed. For most population it will be increasingly difficult to find a job - any job - regardless of your qualifications and experience. And for those lucky adequate to be employed, holding a job will mean putting up with less desirable working conditions, benefits, hours, and pay. In fact, as competition for jobs greatly increases, most wages will indeed fall. After all the bubbles pop, population will accept wage cuts in most jobs for one straightforward reason: if they don't, somebody else will.
By necessity, the government will be forced to live within tax wage limits. The world cheaper will not allow unlimited printing of "funny money" to allow for unlimited deficit spending. The quantity of currencies injected by numerous countries will have already added to inflation on a global scale. Too many dollars, yen, euros, etc. Will be chasing a declining quantity of goods and services.
The Old cheaper is gone; the New cheaper is here.
In 2011 the federal government is overspending wage by 40%. Even a 10% decrease in the size and scope of the federal government would add hundreds of thousands of supplementary population to the unemployment roles (including government positions and supporting inexpressive suppliers and contractors.) This does not consider the same cascading effects facing state and local governments that have never had the potential to simply print money.
So one of the defining characteristics of the post-dollar bubble cheaper will be a shortage of jobs. Unemployment levels will be much higher, and population will remain unemployed for much longer. At the same time, businesses will be forced to cut wages and benefits to remain competitive. Millions of Americans will accept cuts in pay.
Especially hard hit will be younger workers and older workers. Prospective employees under 30 will find it hard to compete against older, more experienced and proven workers. Likewise, workers over 50 will also face very high unemployment levels.
At the same time, loss of tax wage will force the government to tax more and tax deeper. Remaining businesses and employees will be taxed harder! Most will rationalize that 50% taxation is better than not working at all!
Different population will look at the same facts and draw different conclusions. So what do you think? Do you believe the bubbles will miraculously re-inflate and good times are on the horizon? Or do you believe (as the authors of "Aftershock" have detailed) that the old bubble cheaper is gone and a newer, leaner cheaper is what we can expect?
I concur with the closing that we are now experiencing the "aftershock". I always knew that an cheaper based on 20% appreciation in housing values, pensions exceeding 100% of wages while working, whole shopping centers selling fully unnecessary novelties and decorations, and unbridled government deficit-spending had to "pop" eventually.
And yet I am also believe 100% in the viability of the free Company capitalist model. So I going to make some suggestions:
First, if you are under the age of 30 or over the age of 50 you are in danger of becoming a statistic. You whether need to make yourself invaluable to your current manager or prepare yourself for the high possibility of a layoff.
Second, identify some needful aid or product that you can get excited about!
You have arrived at a "fork in the road". You have two choices, plus a combination. You can take the wide road and do whatever it takes (training, cross-training, adult education, apprenticeships, etc.) to become superbly trained for the job you have or would like to have. Remember, there are going to be too many population seeking each job. You are going to need be impressive in every way and probably over-qualified to get noticed.
The second option (the "road less traveled") is to originate your own occupation. Now this can be a retail, service, or skilled occupation. Each has its attractions to positive people. My personal option is to supply a product or aid on a nationwide (or even global) basis. Again, these offerings should fall in the kind of "necessities" rather than novelties. Luxuries offer a much smaller but profitable niche if you can cater to the affluent.
Even in tough times, fortunes can be made by satisfying needs. The time-proven method for success is to identify a qoute and supply a solution. In the post-bubble Aftershock economy, providing alternative wage opportunities is one legitimate solution!
Now owning your own Company includes the hassles of regulations and buildings that you fully avoid if you stay in the employee category. But your own Company also provides a degree of freedom not possible as an employee. The particular biggest benefit is that you have no cap imposed on your income, especially if you are selling a product or aid and not your efforts by the hour. Operating a Company also allows you to deduct expenses before taxes. A higher possible wage and tax advantages results in a win-win.
And then there is the mixture of the two options, and this may be a viable option for the majority of Americans. If you have a steady job there is added security in construction a part-time Company on the side. You gain wage and can offset a portion of your expenses that are now cutting into your after-tax personal wage (such as a home office deduction, voyage expenses for errands, office supplies, etc.) You also gain the security of a wage cushion if your quarterly job evaporates or you face a cut in wages.
Of course, many small businesses at last grow into large businesses. You then have the option of production your part-time Company a new full-time profession, hiring some employees to carry on the extra work, or selling the Company outright at a profit. Again, many advantages and few disadvantages (if designed with some forethought.)
The "road less traveled" provides increased possible rewards for assuming personal responsibility. At the same time, millions of Americans have learned that "job security" is a contradiction. We have entered the new age of job insecurity in an increasingly lean and competing global economy.
So where do you start? Here are my recommendations for the ideal business:
1. Unlimited wage potential. This is only possible if you are selling a product or service. If you are selling your time, you are limited by the estimate of hours you can work each day, week, and month. When you stop working you stop earning, and this is true even if you can bill your time at 0 per hour. Also, you want to have at least some products or services which generate repeat sales - unless what you are providing is incredibly profitable in the preliminary sale. Likewise, if your Company allows you to leverage the efforts of others to supply supplementary streams of income, so much the better!
2. Time and location freedom. The ideal Company will take benefit of current technologies and allow you to be located anywhere, and sell to anyone. These technologies will also allow your sales to recorded 24 hours per day, 7 days per week. Some products or services may have limitations which restrict the sales area to one location. But many products and services - especially digital products - allow sales to be made on a worldwide basis instantaneously!
3.Small preliminary investment. While many downsized employees have bought franchises and other fixed location Company opportunities, I can not advise this option. For one, the start-up costs can be very high, indeed hundreds of thousands of dollars with no guarantees. Then you are faced with the reality that you have assumed the job of full-time personnel director and you spend all your time whether managing employees or hiring their replacements. Instead, I would advise an opening with a low start-up cost. This allows you to begin
part-time. It also means you won't have to qualify for financing, which may be next to impossible for a new Company in the post-bubble economy.
In my opinion, network marketing fulfills all these criteria. There are indeed thousands of products and services that are marketing by networking. Combined with the power of the Internet and public media, networking has entered the mainstream and is a viable option for a full-time or part-time business.
Millions of Americans have used network marketing to produce extra income. The Company provides all the sustain functions, from billing and reputation card processing to accounting for commissions. Networking includes the creation of a downline that produces supplementary income. And consumable products supply residual income, often from several generations of customers that you have never even met.
There are no restrictions based on age, experience, location, or net worth to join a networking company. population from all walks of life - along with unemployed - have become thriving in network marketing. In fact, many thousands of networkers are indeed unemployable after experiencing the freedom and wage possible of network marketing.
If you conclude that networking is right for you, there are countless resources (both free and low cost) that are ready to shorten your learning curve and help you succeed! There are also turnkey marketing systems designed to automate the process of locating customers and claiming your slice of the Internet!
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