New Economy

The common mantra is that the economy is doing well.

Unemployment is low, there is some uptick in wages, and the stock market has hit records.

Of course, the unemployment being low is partly related to less workforce participation, the wage increase might simply indicate that they have established a new baseline and stocks are influenced by corporate profits and future expectations.

In many ways the economy needs to be viewed as a different economy than what we had in the past.

Skilled workers who fit into the new way of doing things are in fact doing well.

Many blue collar workers or pink collar ones aren't.

They have lost jobs that used to provide entry level work to automation, not export.

So many of our activities are now done by robots or automation.

I now effectively do the work that used to be done by multiple people.  I prepare reports on a computer instead of hand writing them and giving them to a typist.  I answer all my own calls and schedule instead of having an administrative assistant. In fact I can now work from almost any location eliminating the need for office space and corresponding support staff.

Similarly in factories if you look at old photos you see many people doing tedious work that is now done by robots.

The new economy is doing well but people who were prosperous in the old economy aren't generally doing great.  They may be working is a low paying service job, and they may have adjusted to it, but it isn't the same.