Retirely
1
All posts from Retirely
Retirely in The things you own end up owning you,

CNBC looks at ways employers can help workers save more for retirement. Missing from discussion: Any mention of raising wages

Here’s a novel idea: Instead of immediately going for the “raise my wages” money-grab, try cutting your spending to accommodate your retirement savings. Wait, higher wages as a vehicle to let people put more of it away in retirement while also paying for today’s costs? HA. Clearly too many people are getting too many lattes before retirement.  Don’t you know that cutting out these idle pleasures can save you $45,000 (during retirement) per cup?

“People need to learn to be more self-sufficient. Why I remember a time in my life where I had no income while I went to college, my parents paid my tuition and room and board but there were still expenses! So I pulled hard on my boot straps and sold some stock my father had given me. People should try and be more resourceful, like I was.” – Romney

The fact of the matter is, you raise the wages of low skilled workers and automation becomes that much more attractive. This is why we require much fewer people to build a Toyota, but about the same to staff a McDonald’s. Semi-skilled labor is more expensive than the machinery needed to replace it. But $8/hour still beats computers and robots, and the repair and replacement costs. But here’s the rub: That technology isn’t getting more expensive. At some point, order taking tablets, burger flipping machines, ditch digging robots, etc. will become cheaper than even the lowliest of workers. And when that happens, we had better be prepared. Those gains now going to the richest will HAVE to be redistributed to the 50% who are now permanently, structurally unemployed. Without a livable unconditional guaranteed income, this won’t look like the Jetsons. It’ll look like the French Revolution on a global scale.

You’re supposed to eat ramen noodles, ride the bus or bike everywhere, and live in a closet with no discretionary income whatsoever. Duh.