Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

ALICE Doesn’t Work Here Anymore

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission.

What the political class and the Financial Nobility don’t yet grasp is that ALICE will never go back to her insecure, low-wage job, ever.

Liquidity moves markets!

Follow the money. Find the profits! 

Meet ALICE: Asset Limited, Income Constrained, Employed, at least she was employed until the pandemic presented impossible choices between taking care of her children and their education, and her aging parents, and keeping her demanding, low-wage job.

Though it doesn’t fit in with the cute mythology of “capitalism” that apologists love to promote, ALICE wasn’t working to get ahead–she was working to barely survive in an economy where wages have stagnated for decades and recently lost ground at an alarming rate as costs for everything from rent to childcare to utilities have soared while her hours have been cut.

This is the neofeudalism I’ve often described here: the modern-day equivalent of the landless (i.e. owns no capital) serf is a landless (i.e. owns no capital) debt-serfwith student loans, an auto loan and credit card debt and income that is constrained by globalization, financialization and the scarcity of high-paying work that isn’t reserved for insiders and the privileged few who chose their wealthy, well-educated, socially connected parents wisely.

Lacking capital and any realistic means of acquiring any, the debt-serf has only labor to sell, and in a globalized world in which everyone selling their labor is competing globally for work producing tradable goods and services, ordinary labor has lost purchasing power for the past 45 years (see charts below).

The dominance of Big Tech monopoly platforms has created new fields for the exploitation of ordinary labor in the low-paid gig economy and fulfillment centers. The traditional neofeudal fiefdoms (retail outlets, hospitality and restaurants) have been hit by the pandemic pullback in consumer spending, and the other low-wage fiefdoms (fast food and domestic service) have been in structural decline for years.

Meanwhile, the owners of the Financial Nobility’s fiefdoms and Big Tech monopolies have enjoyed unprecedented gains in income and wealth (see charts below) as wages’ share of the economy has declined for decades, in effect transferring trillions from labor to the Financial Nobility.

This neofeudal arrangement is about to change as Universal Basic Income (UBI) or its equivalent becomes the accepted status quo solution to neofeudalism’s soaring inequality.Since there’s no limit to how much currency can be created by the Federal Reserve, then why not distribute enough “free money” to the serfs to tamp down the brewing revolt?

What the political class and the Financial Nobility don’t yet grasp (due to their complete disconnect from neofeudal daily life) is that ALICE will never go back to her insecure, low-wage job, ever. No matter how meager the UBI, permanent unemployment, stimulus or whatever the political class calls the distribution of “Fed free money,” ALICE will find a way to escape the bonds of neofeudal serfdom.

As I’ve noted here many times, the cash / informal economy beckons. All sorts of labor arrangements can be made on ALICE’s terms, not the Big Tech monopolies’ terms. No wonder the Financial Nobility is so desperate to eliminate cash. But other currencies may fill the need if the Neofeudal Overlords try to eliminate cash dollars.

Liberty and freedom are not just lofty academic abstractions; what matters is being freed of the neofeudal chains of Big Tech monopoly platforms and the Financial Nobility’s other fiefdoms.

Of related interest: Why the Pandemic Is Forcing Women Out of the Workforce (via A.P.)

My new book is available! A Hacker’s Teleology: Sharing the Wealth of Our Shrinking Planet 20% and 15% discounts (Kindle $7, print $17)

Read excerpts of the book for free (PDF).

The Story Behind the Book and the Introduction.

Recent Podcasts:

AxisofEasy Salon #27: Will the Network State be capable of acting in the public good? (1 hr)

My COVID-19 Pandemic Posts

My recent books:

A Hacker’s Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook coming soon) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic($5 (Kindle), $10 (print), (audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake$1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print)Read the first section for free (PDF).

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.