No One Wants to Work Anymore
Or so they say.
It’s not just the businesses that are drastically changing within our economy. Peoples’ views of what it means to work in the economy is also going through a metamorphosis. From what I can see when looking at the economy, the behavior of friends, and my own views of the world, the headline should read something like, “People are realizing technology is giving them options on how to earn money.”
I am quick to give up on a book that lollygags around when presenting something useful or interesting, so let me be brutally honest in respect of my readers’ time. COVID was one of the best things to happen to the majority of young adults in America. In previous crises, young adults were sent off to die in wars, suffered from poverty, or died from illness due to a lack of medical intervention. The current 18-29 year olds ordered some colorful masks on Etsy, binge-watched Netflix, and collected hefty unemployment checks.
So, besides not having a serious chance of death, why was this good for young people? Well, now you have a “kid” sitting on 10-15k in unemployment money. Their view of money and time has been completely altered, and they are probably dreading going back to their job. So what are they doing? They are plotting their next move. They’ve never had this much money in their savings account, and are probably still sitting on some debt hoping Elizabeth Warren will wave her magic wand.
Before the pandemic, 47% of Americans age 18-29 lived with their parents. Post pandemic, that number jumped to 52%. A majority, and the highest in recorded history. So, what is going on in the most prosperous country in the world’s history?
A few things:
The public’s view of institutions couldn’t be lower. The “adults” who are steering the ship are having a tough time convincing the public they aren’t drunk. These institutions are seen as a negative to the environment, their employees, and the structure of society. This is not necessarily true, but it is the consensus view, especially with younger people. This leads to people having almost no interest in climbing the corporate ladder. You are seen by peers as “joining the wrong team.”
The gig economy. Many young people have found themselves in a neo-fuedalist society, with the current system being a headwind to their hopes and dreams, not a tailwind.
It is a very smart generation. The information and tools young people grew up with and have access to are nothing like that of previous generations. They can freely look up anything, question the status quo, and find examples that give them confidence to go against the grain. If you did that 30 years ago you were sabotaging yourself. Not today.
The next generation almost never wants what the generation before them wanted, except the hippies for whatever reason. The hippies became the modern corporatist. I digress. Most young people look at the boomer generation with a certain amount of disdain. Tasteless consumerism and an abandonment of previous structure and norms are two that come to mind.
So, we are in a period of transition. People are looking for a way out, in order to get in.
Growing up in a modern society, there is a sense that everything is under control. The mailman is always on time to deliver you your three bills and three pounds of junk-mail. Water always flows from the sink. The adults go to work, the kids to school. The government has checks and balances, and science and technology will sustain and perpetuate stability and high living standards.
COVID was a true shock in regards to the fragility of the modern world. People are underestimation what a global shutdown does to peoples’ perception of the world. It makes people more advantageous to risk when they see everything come to a halt.
The majority of jobs we are seeing that currently need filling are the kinds of jobs that would be occupied by people in the 18-29 age group. Restaurants, movie theaters, retail stores, things of that nature. These are people who were starting to work, working a temporary job in the gig economy, or starting to settle into a career at the time of COVID. They now have money, and tasted a bit of free time.
Since I am an investor, and most people reading this participate in the financial markets in some capacity, let’s focus on the reddit/meme stock phenomenon. It’s hard to separate assets bubbles, which attract most people, from those looking to utilize the financial markets to escape employment. But, I think we are getting a bit of both here.
Yes, the market is high, but more importantly people are looking to be self-made by any means possible. They don’t want a boss, a schedule, or a commute. They don’t want banal co-workers who wear them down. Most people dislike living in a city, but are forced to due to work. Becoming an independent trader frees you of these things, as does starting a small farm, or investing in real-estate, or doing freelance work. The point is you are your product, not the tool of an institution.
There is a valid argument to be made about working jobs you don’t like. It teaches work ethic, and cultivates independence. I don’t think the younger generation is as soft as we make them out to be, and I am all for starting out working hard, low paying jobs to gain perspective. But, the next iteration of middle-class employment is looking less and less attractive. I believe this next generation not wanting to follow the previous generations career path is a positive. We need to use technology to empower the individual to be creative and productive. To quote the great Amused Chimp, “are you using the computer, or is the computer using you?” The next generation isn’t demanding more money. They are demanding their time and independence.
If I could boil it all down into one sentence it would be this:
It is a push against how we have structured productivity in modern life.
People want to work, set goals, and be productive. But they also want to have a sense of control over their lives, and a label of pride and individuality in their contribution to the economy. Free from a boss, free from a location, and maybe even free from a specific currency controlled by a central bank. It all ties together.
People want to work, they just don’t want the jobs available, good pay or not. Many in that age range don’t have a family yet, so they are not as tied down to making sure their is food on the table. They will be able to sit, learn, and make a plan before returning to work (if they do) because of the stimulus money sitting in their account, and the safety net offered by their parents. This generation has the internet to learn from. They see people worth millions from YouTube and social media. They also see those who have left the system, and chosen a peaceful and simple life with the luxury of time. A busy and intangible role in modern society is very low on the list for the majority of young Americans.