• News
    • Archive
  • Celebrities
  • Finance
  • Crypto
  • Entertainment
  • Travel
  • Health
  • Others

Why Your Jobs May Soon Become More Important Than Your Wealth


Over the last century, we’ve lived through an ever-expanding world. The population was growing exponentially, economies were increasing their output every year, and labor-saving machinery was seemingly sprouting out of the ground.

But that’s not how things were throughout most of human history. For much of the past, progress on all those fronts was so slow that people barely noticed changes across their entire lifetimes. To the average person, the world of 1680 looked almost identical to the world of 1650. The population was roughly stable, working practices remained the same, and cities didn’t grow. Our recent experience is an aberration, unprecedented in human history.

For those interested in building wealth over the very long term, these megatrends are important. It gives you some insight into where we have been, and where we are likely headed.

In the U.S., the population exploded after 1950 with the baby boomers. During those two decades, consumption was high as the silent generation built their families. This process drove economic activity to a point where average growth rates reached 4 percent per year, a “golden age,” economically speaking.

Because of the high number of working-age people, favorable demographics, and solid social institutions, the growth of wealth accelerated from the 1970s all the way to the financial crash of 2008. During that time, many Americans became fabulously wealthy, riding the economic wave of the last seventy years that transformed the world.

COPYRIGHT_WI: Published on https://washingtonindependent.com/why-your-jobs-may-soon-become-more-important-than-your-wealth/ by William Willis on 2022-09-05T11:54:34.863Z

Why The World Is Now In A Mess

Unfortunately, the forces that produced that unique event in human history are dwindling. Native population growth is now negative in the U.S., meaning fewer consumers tomorrow. The pace of meaningful technological innovation is slowing, and the energy crisis threatens to pull the rug out from underneath the economy. As a consequence, the next ten years will likely look nothing like the last ten.

Let’s take the population issue. During the pandemic, many commentators believed that we would have a baby boom. With people locked up in their homes, they had nothing else to do other than build babies.

But that’s not what we got. Instead, fertility rates actually dropped, particularly in major consumption markets, such as Europe and Japan. If anything, the restrictions accelerated the process that was already underway, bringing population collapse forward in time by ten to twenty years.

At the same time, the energy crisis deepened. The Russia-Ukraine war is an issue that has caused prices to go higher. But the fundamental economics of the energy sector is now broken. It costs more barrels of oil to get a barrel of oil out of the ground than ever before, leading to fundamentally higher costs on a resource basis. In the near future, we may reach parity, meaning that a barrel of oil costs a barrel of oil to extract. When that happens, production will stop and world economies will go into freefall. Everything depends on energy.

Then there is technology. While modern gadgets and devices are marvelous in their own right, their ability to add further value is questionable. Blockchain and AI may help, but if energy isn’t dealt with, then these technologies won’t have an opportunity to shine.

All this means that the world (particularly outside of the U.S.) is in terminal decline. And that means that the investment landscape isn’t going to be anything like before. Global markets are more likely to resemble Japan’s stock exchange since the 1990s – flat or declining. And building wealth the old-fashioned way will become virtually impossible.

Why Your Job Matters

Because of this, we’re moving into an era where income will start to trump wealth again. The money you can earn through your job will be more significant than what you can get through capital appreciation.

This reality will apply in all sectors of the economy. In housing, for instance, fewer people will mean less demand for existing housing stock. Lack of pressure will cause prices to fall, reducing both yield and appreciation.

In the stock market, businesses will generate fewer profits. Company valuations will fall as consumption declines.

Even assets like gold might go down in price. Fewer goods in the economy will make them less valuable.

Because of this, what you do, not what you invest, will become the dominant force in your financial life. Career decisions will shape people’s lives more forcefully than the amount of money they can put away in their 401(k) accounts.

For the regular person, this reality means that career progression is critical. You need to find work that pays well and will be in high demand in the future. Improving your life through saving and investing might not be possible.

The advice for workers is to look for jobs in high demand. Cybersecurity roles on sites like CyberSecurityJobs pay well and are currently underserved by the labor market. Any cognitive-heavy, technical and creative roles are also likely to thrive in the world of the future. These jobs are more resistant to automation and are difficult to do, ruling out many regular people from the labor market.

If you have a high income, your investment opportunities will be limited. Instead, most people will stop planning for the future. The returns simply won’t exist like they have done in the past. Rather, they will take their work with them to the grave.

Wrapping Up

While this picture could look a little bleak to some people, there are some benefits. The first is that it will encourage people to live in the present. Instead of saving and sacrificing, people will feel more confident to enjoy what they have right now. Their focus on the future will diminish and they will simply go with the flow.

Furthermore, if they prioritize the type of work they do, they may be happier day to day. Doing something enjoyable is much more rewarding than simply grinding away in a job you don’t like for a paycheck.

Of course, none of this may come to pass. If we have aging, technological or energy breakthroughs, many of these problems will vanish. But most people believe that is unlikely.

Share: Twitter | Facebook | Linkedin

About The Authors

William Willis

William Willis - William Willis is a freelance writer and social media manager who specializes in assisting finance professionals and Fintech entrepreneurs in growing their online audience and attracting more paying customers. William worked as a bank teller and virtual assistant for financial firms in the United States and the United Kingdom for six years before beginning her writing career. William is a strong force in the workplace, inspiring others to work hard and excel with his optimistic attitude and boundless energy. He enjoys hiking, crocheting, and playing video games with his children in his spare time.

Recent Articles

  • Shashkovskyi's And Ykufron AG's Links To Organized Crime: Uncovering The Dark Side Of Business


    Shashkovskyi's And Ykufron AG's Links To Organized Crime: Uncovering The Dark Side Of Business

    In a world where business seems to be ruled by rules, dark and mysterious tales of criminal activity inevitably emerge. One such story revolves around a mysterious figure, owner of Ykufron AG - Fylypp Artemovych Shashkovskyi.

  • Unleash Your Business Potential With Cloud Data Management


    Unleash Your Business Potential With Cloud Data Management

    Are you ready to take your business to the next level? Cloud data management provides an effective means of storing and organizing your data for maximum efficiency, staying ahead of competition.

  • Why Finding The Right LEI Registration Agent Is Vital


    Why Finding The Right LEI Registration Agent Is Vital

    Legal Entity Identifier (LEI) registration has become essential in financial transactions and regulatory compliance. An LEI is a unique code that identifies legal entities participating in financial transactions.

  • Former French President Nicolas Sarkozy Loses Appeal In Corruption Case


    Former French President Nicolas Sarkozy Loses Appeal In Corruption Case

    Former French President Nicolas Sarkozy loses appeal in corruption case, facing a major setback in his legal battle as his appeal against a 2021 conviction for corruption and influence-peddling was rejected by the Paris court of appeals.

  • Lizzo Weight And Height, Lifestyle, Career, And Achievements


    Lizzo Weight And Height, Lifestyle, Career, And Achievements

    Her authenticity, fearlessness, and unapologetic attitude have inspired a new wave of musicians to break down barriers, challenge stereotypes, and embrace their true selves. Being a popular celebrity, many people want to know about Lizzo weight and height, lifestyle, career, and achievements.

  • Best PC Headphones No Mic - Comfort Meets Performance


    Best PC Headphones No Mic - Comfort Meets Performance

    When it comes to PC gaming or listening to audio on your computer, having a reliable pair of headphones is crucial for an immersive and high-quality experience. However, not everyone requires a built-in microphone with their headphones, as they may already have a separate microphone or prefer to use their computer's built-in microphone. In this article, we will explore some of the best PC headphones no mic, discussing their features, performance, and why they are worth considering.

  • Beats Headphones Vs Bose - Which Brand Offers The Best For You


    Beats Headphones Vs Bose - Which Brand Offers The Best For You

    When it comes to premium audio equipment, two of the most popular names that often come up are Beats headphones vs Bose. Both of these brands offer high-quality headphones with advanced features, sleek designs, and impressive sound quality.

  • 3 In 1 Rotating Game Table - Space-Saving Entertainment


    3 In 1 Rotating Game Table - Space-Saving Entertainment

    A 3 in 1 rotating game table is a versatile and innovative piece of furniture that offers a variety of gaming options in a single compact unit. Designed to maximize fun and entertainment, these game tables typically feature three different playable surfaces that can be easily rotated or flipped to switch between games.

  • Blinding Headlights - U.S. Drivers Complaining Yet Again


    Blinding Headlights - U.S. Drivers Complaining Yet Again

    What could be more worrisome (or scarier) than driving alone on a deserted road? Well, several vehicles going in the opposite direction with blinding headlights. Too much brightness can distract you and ruin your focus - and that’s dangerous!

  • Tianyancha - The Ultimate Business Data Platform

  • EXWeb - A Revolutionary Platform For Web Development

  • IRacing Planner - Your Path To Success

  • EZTV RE - A Tale Of Online Piracy

  • Peter Stormare - Journey From Sweden To Hollywood