The Declining Quality of Human Capital and Falling Wages
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- Опубликовано: 15 окт 2024
- In this thought-provoking video, we delve into the controversial topic of the declining quality of human capital and its impact on wages in today's job market. With advancements in technology and automation, many argue that jobs have become easier, leading to a reduction in the skill requirements and overall value of human labor. But is this really the case?
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At 3:29 you discuss productivity growth still. Two problems of that is the productivity is still growing while wages have stopped reflecting that growth ages ago, and that productivity growth cannot go forever at the same pace as it's adjusted from previous year, not from some kind of historical low point. Percentage per annum means that productivity has risen by at least 50% in last 15 years, according to your own data.
Excellent video as usual.
Honestly it seems to me like the need for high quality labor is higher than ever, whereas the need for 7/10 or lower labor has become nearly useless. It’s this paradox which is causing everyone to feel gaslit on this topic.
Another thing is that ambitious people go into the wrong sectors. Almost all go into finance, tech, engineering, medicine, etc..
Very few go into trades or construction. I know someone who ran a construction tech startup and they said that VCs are funding the most stupid and unfeasible pitches because nobody understands construction and are funding 3d printing concrete and such things that don't make sense. Often people who don't perform well at school or have substance abuse issues go into trades, when there is huge opportunity and plenty of intellectual stimulation for high-performing people as well. There is on oversaturation of smart people who think only medicine, investment banking, Big tech, Law etc... are with pursuing. Well, there is a problem of overcompetition and underemployment in these fields with people working in service jobs or going to grad school for no reason. What a waste of human capital!
Yes this is SO true. the tech innovation has left behind the trades. Nowadays really stupid ideas get financed.
great video Nick! I completely agree as a member of Gen Z. Among the Cohort of people I grew up with many men have become NEETS. It is difficult to connect with ambitious, business-minded, and fitness-oriented people in this age demographic. People just want to rot in bed and complain. This is a topic that people are not talking about
As a general contractor that is 29 i cant not find anyone no matter how much i pay, that can produce like me or has my knowledge to get a job done without constant handholding. If you are a knowledgeable productive person now a days your phone will ring 24/7. I swear iv had to teach people how to sweep.....
Have you tried older guys and then getting the younger guys to work around them and pick up the work ethic?
@riumudamc4686 yeah the last old people worth a damn fought in ww2 they are all dead. Age doesn't always mean wisdom and one's with any made there money and don't swing hammers anymore
No joke
When US and USSR systems were fighting each other, they both invested in the human capital because that gave them a competitive edge. Once they merged into a global elite cabal there was no need to invest in the human capital anymore. In this sense, the resurgent China is actually good, because it might just restart this investment again.
I think large companies becoming more transactional has hurt ambitions and therefore productivity.
Pensions, career planning, and investing in specific corporate skills all gone.
Hard to compete with wages in places like China
true
Really excellent video Nick! Greatly enjoyed it! Thank you for sharing
I quit working a year ago because it’s no longer worth my time.
How are you supporting yourself?
@@Lalapizzle I guess I still work I just make money doing different things. It becomes a hobby almost. I resale things I trade in the market (which I don’t recommend for most people because the learning curve can ruin many people) and I will work odd jobs or events that come around. You have to save enough money to last you at least one year before i would recommend doing this but if you are self motivated most can make it work.
I am involved in the management of a mixed dairy and grain operation. Finding quality labor is borderline impossible. Many younger people will not even show up, or quit because the work is too "hard". Otherwise have to hire people who require constant supervision, and seem to be involved in substance abuse/borderline criminals.
Lack of quality labor is leading to the decline of many farms. Many want to exit the industry or are putting their expansion/improvement plans on hold. Automation has partially solved this with robotic milking but the same issues are at play with labour. Automation improves cow management but does not completely eliminate the need for hired labor in most cases. There seems to be a societal mindset in some people that its frowned on to try very hard at anything.
The fact that oil and gas jobs pay 40$ an hour for entry-level pay is not helping either... of course, those jobs are prone to mass layoffs when there is a decline in energy prices.
40$ an hour barely pays the bills. It’s sad but true.
@@EMan-cu5zo 40$ an hour will definetly pay the bills. Maybe not in Manhattan or something...
@@stynnieuwenhuis9999 unfortunately not in south Florida either
Stumbled upon this video and it was worth a watch. Not sure looking through your catalog if you're familiar w/ the decline in quality of our institutions and anti-quality directions such as the recent data out of UCLA med school showing demographics and political ideology driving decision making. Another interesting factor is coming out of Edward Dutton or Charles Murray type works on the decline in IQ. Personally I wonder how far the effects of HR and poor incentives combined with ever-rising levels of lack of competence in management circles is moving the needle.
i always get excited when u say far right fam, even if it just about a bell curve
Spot on!
I love the topics you talk about and your insights
Thanks
How do you measure Labor productivity?
I mean if pressing a button can yield you 1 ton of wheat, that's a very productive press of a button.
Dollars of value produced per hour of work.
@@AFNick thanks for your reply. I watched the charts again, and they refer to non-farm jobs. So, the "1 ton of wheat per button" due to industrialization doesn't seem to apply here.
In my experience, universities don't appear to improve marketable skills that companies use, so I would say that the percentage of the population with university degrees doesn't necessarily improve productivity.
Measuring productivity in dollars creates a feedback loop. For example, if I produced 100 cars that cost $20k each, and after technological improvements, I produce 200 cars, but due to market reevaluation, those cars now cost $10k each, my productivity improvement would be 0%.
Mainly, I didn't find your video persuasive, so I feel that either the data is measuring something wrong, or you haven't identified the exact causes.
I would guess that productivity is fine where it matters but gets diuluted from unproductive office jobs and also simplification of jobs invites more supply of labor thus dropping wages down(thus the productivity measurement as well).
anyway I would be interested to tell me if I am missing something.
I agree, but I'm going to comment anyways 😎
Fantastic video
Thank you
Great video
I almost thing that the automations make jobs higher skill because we have be able to identify issues with a lot less experience and exposure.
Because dancing on tik tok is what making money these days, not the jobs that require higher IQ such as medicine. Why bother studying to go through med school if I can be an influencer or onlyfans girl and make a lot more money.
Watch my video on why you shouldn’t be a RUclipsr for the true economics of influencers. It’s not worth skipping school for.
@@AFNick at least there won’t be any student loans.
Good video essay
i send this stuff ti my parents and aunts and uncles who are educated boomers, doctors etc. they dont believe you nick! they just start going off about how the other politcal party does xyz and they dont look at the real data with critical thinking. sad to see the older generation uncle to look at now and then with clarity
Well done. You found out about an iditrolody you have none / zero effect of.
Enjoy your youth, that's the only thing ‘rich’ can't get back.
Get good or get taken.
Welcome to the world lol
Iditrolody?
wait a minute, from everything i have seen and read the productivity growth has been growing year over year. i believe the grothen has been over if not atleast 50% in the last 20yrs! have have the wages kept up? ur r picking data to fit ur story!
The productivity is growing slower than inflation. That’s the problem
@@AFNick yes, but that has only happened for the last 3yrs or so what about the last 17yrs? the inflation is coming down - what then?
THE PRODUCTIVITY GROWTH IS ONLY GOING TO THE OWNERS!!!
@@garydavidson6917yeah, because the productivity gains come from capital not the workers. Using the automobile industry for example the workers do less and the machines do more. Naturally, the money will follow the actual source of production gains which is the owners of capital. The workers aren’t better the machines are.
@@badart3204 - yeah, let me see how many cars are built without the workers
@@badart3204 - yeah when the unions were strong this was not happening - read some history of this - since the late 70s - the growth is not going to the workers
besides try building those cars without people - yeah i worked for Ford when i got out of college!
Unfortunately kids that have seen there parents doing "labor" jobs dont want to do them because they dont get paid great in some cases they dont get a lot of respect and there is not much loyalty shown to them from their companies. The parents have told their kids "you dont want to be doing this when your my age."
Human labor is on the way to being entirely obsolete. For a working human economy, we are going to have to place value on something other than human efforts and production. Some sort of "basic income" will be just one of the new requirements.
UBI would cause more problems than it solves. Without meritocracy based work, how do we decide who gets to be in higher classes or live in more premium locations?
@@AFNick yes and it would create a political shitshow! want to win an election make UBI 10k a month. Repeat. This will just enable nihilism, laziness and economic disaster.
We can all sit on our buttocks. That’s going to help everybody.
The reason why IQ tests and exams in general have been in decline since the turn of the millennium, is how the tests and expectations have changed. If you speak to anyone working in academia they will tell you that year after year the expectations on students (kids) are rising and rising to a ridiculous level, to the point where even the teachers themselves are struggling to keep up with the volume of work that needs doing (Teachers struggling to keep up with the work is a well documented issue).
In simple words: 50 years ago the exams were way easier, expectations were way lower and it was far easier to cheat. The requirements to get an excellent score 50 years ago versus today are nowhere near the same. Things simply were way easier back in the day. People simply romanticise the past.
On the other hand today young people are expected to have high level performance on everything, not just one field, which in turn alienates a lot of them and turns them off education as a whole. It is simply not a sustainable expectation to have for education standards to keep rising to them moon. Young people want to live their lives, not be studying non stop to meet standards that didnt even exist 30 years ago. Now they are also being told AI is going to replace them, so what is even the point in the first place to compete with machines.
As for the IQ score in Mensa dropping, that is for similar reasons. The numbers are arbitrary. Someone with a score of 130 today would have scored 140 50 years ago.
Good counterpoint. Thanks for the comment
I wonder what the IQ of the average university student is compared to 50 years ago. I don't think it's that the exams were easier.
I wonder how true this is. Education is big business now and grade inflation is rampant. Many western country universities are subsidised by international students essentially bribing their way in.