Welcome to the Age of the Obsolete

When we think of something as being obsolete, what we think of is old technology, rusted machinery, cars that no longer run.  Things.  But is it possible for people to also become obsolete?  To find themselves cast aside by a world indifferent to their needs?  To be scorned, called idle, lazy and worthless by those more fortunate? To have neither dreams nor purpose nor hope for the future?

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​     For the past 150 years, the American Dream has meant that each generation would rise -- both socially and economically – beyond the one that preceded it. From the stories of Horatio Alger to the waves of immigrants entering Ellis Island, America has always been seen as the “Land of Opportunity,” a fertile ground where hard work and determination would be rewarded by continued financial success.

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​     Traditionally, when we talked about the future, what we talked about was owning our own home, sending our children to college, retirement and financial security. Unfortunately, that dream is in danger of dying. Today, the American Worker is under attack. From rising prices to stagnant wages, every step forward is matched by two steps back.  Currently, there are three economic forces impacting our livelihoods as well as the future of work.

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Inequality Has Become Entrenched

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     Since 1975, the income gap in the United States has steadily widened to where today, the top 1% command the lion’s share of wealth.  According to current reports, 82 percent of the wealth generated since 2017 has gone to the richest one percent of the global population. Billionaire wealth has risen by an annual average of 13 percent since 2010 -- six times faster than the wages of ordinary workers, which have risen by a yearly average of just 2 percent. The number of billionaires rose at an unprecedented rate of one every two days between March 2021 and March 2022. In the U.S., it takes slightly over one working day for a CEO to earn what an ordinary worker makes in a year.

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     In an interview with journalist Bill Moyers on PBS, economist Paul Krugman argues that this is a trend driven not simply by the greed of the nouveau riche but by the ingrained power of inherited wealth.  Krugman contends that the world has changed significantly over the past twenty-five years.  Not only are we moving toward greater disparities in income and wealth, but also seeing them become entrenched as inordinate amounts of money are transferred from one generation of a family to the next.  So much so that we have become a society of inequalities completely unlike anything we had previously envisioned. 

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     “Suppose your family has a large fortune?” asks Krugman.  “The inheritors of that large fortune can live very well and still put a large fraction of that fortune aside and the fortune will grow faster than the economy. So, the big dynastic fortunes tend to take an ever-growing share of total national wealth. You're talking about a situation in which dynasties come increasingly to dominate the top of the economic spectrum.” For Paul Krugman, as for many observers, having a plutocracy that is so wealthy means that a very small cadre of people can effectively buy the political system which is then going to serve their interests by reinforcing the shift of income and wealth towards the top.

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The Rise of the Gig Economy

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Since the Financial Crisis of 2008, the majority of new jobs created in the U.S. have been in the area of freelance, part-time or contract services -- a Gig Economy without benefits or security.  An article in Forbes magazine describes this phenomenon: “The gig economy gets its name from each piece of work being akin to an individual ‘gig.’ At its core are app-based platforms that dole out work in bits and pieces — making deliveries, driving passengers or cleaning homes.”

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     Forbes notes that not all gig economy roles are based around a technology platform. Gig economy workers can also work for more traditional companies, which have changed how their staffing system operates.  The companies promoting the gig economy say they provide the flexibility to work whenever you like.  Critics — which include many of those working for these companies — argue that not only do workers lack protection and fair pay, but the roles aren't as flexible as they seem, with people either incentivized or pressured to work when the companies need them.

 

     On top of that, workers aren't paid benefits such as holiday or sick pay, and reports suggest some aren't even making minimum wage.  That's legally possible because gig workers aren't seen by the companies they work for as employees but as contractors.