Crypto Will Drive Labour Cost Deflation

in HODL2 months ago

Hey Jesslave labour

Most of us are not born into money. Unfortunately, we're worker bees and have to go to school, find a trade you enjoy head off to the particular salt mine you will specialize in and trade your time and labour for rewards. The labour market is one of the most inefficient markets in the world.

People don't tend to talk about their salaries, so we don't know what the value of a specific position and task should be. With company structures, all about nepotism as they become more significant, it's not about the production value but how the management wants to slice up the pie of money.

As someone fortunate enough to learn an internationally marketable skill, I've been able to get exposure to other markets, earn Dollars, Pounds and Euros for my work and understand how globalization adds another layer of labour market arbitrage and inefficiencies we can exploit.

labour.png

Working on the internet

The internet has made it easier to trade internationally and supply goods and services to a broader market than you would traditionally have access to without the help of internet and internet money. In a country like South Africa, I would say we're still pretty insularly, and there are only a select few bringing in international commerce via the internet.

The vast majority of people are trading locally, and money flows between them to hopefully generate production. As more people embrace the internet and find work online across Africa and Asia, we now have more competition for these jobs.

You can be a developer anywhere in the world; you can be a marketer anywhere in the world as long as you're good at what you do people don't care, they want the job done. While there is still a bias towards first world country labour to do digital work, it has begun to open up, but the barrier to entry when it comes to payment has been an issue.

You can use things like Paypal, but the fees are horrible, wire transfers too, freelance platforms also take their fees and drive labour costs lower, and you have little negotiating power, and you're tied to the platform.

Crypto lowers the barrier

The introduction of cryptocurrency being permissionless and borderless allows talent from all over the world to compete for the same jobs and money. This will do one of two things, give other talented individuals access to western level wages for their abilities, bringing money into their countries, enriching individuals, which then trickles down into their regional economies and redistributing income.

But it also deflates the cost of labour in Western economies, at the moment, developers for example in the US receive a premium for their skills, because there's a lot of money chasing a select few skilled workers. The workers also keep and recycle the funds in that region, and it never really gets around.

However, crypto can allow others to tap into that pool, bringing down the cost of that labour market and drive down the cost of certain tasks. This means lower prices for consumers, as businesses have more margins to play with, and it benefits society on a board base.

Third world countries don't have to suffer as much from the brain drain as skilled labour does not have to leave but can expand in their regions.

As third world individuals receive the premium income, they can then use that to start businesses or spend into their local economies uplifting more people in the process.

For example, the contractor now gets work as the developer earning eastern wages can now afford to build offices or home and so creating jobs and more economic prosperity from the same money being circulated which is currently not available to us.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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The importance of cryptocurrency and internet cannot be ignored ever since its emergence. Like you have said, it doesn't matter where you live or stay, with the internet, you can very well market your skills and get paid without any middleman, courtesy of cryptocurrency.

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Thays also a good point taking out the middle man in recruitment and payment makes it even cheaper to hire the best talent for the job it makes companies even more efficient and goods and services even cheaper so we can improve our quality of life

Globalization is a good thing but we need to create more robust markets that don’t just rely on one country to provide x service but let the world compete

Crypto could help I won’t say it will solve it. It sure in the labour marker with more people wanting to work remotely it can be a big factor in how talent earns income going forward

It would be nice to see that this works in the other way also... I mean, I'm living in Spain, and it "counts" as a western country, with home renting prices like in Germany, or the US, but salaries are way lower... I would like to see lower living expenses here, as this as it is now, has no sense...

Totally agree about working for the same salary around the world... Crypto is doing the thing that we didn't see never... Equalizing the quality of life all around the globe...

I would assume spain is one of the bigger economies in Europe so it would be expensive especially in the bigger cities and you’d have to live further out to get that cheaper home but then you may pay more for goods and services since it has to be transported to you at a higher cost there’s always a give and take

Crypto also helps because you can earn that western wage and save in something that appreciates so your labour is worth more simply by keeping hold of that so you do t have to work As much going forward only if you want to

I live in a small town, but my main problem is tourism... lol... I mean, that is what drives the prices up... ANyways, that isn't a point of this discussion or your post... The point that labor costs will have effects in both ways... On the costs of living in "high-developed" countries, but also in less developed...

Yeah internet helping me out with this I can connect to world hope fully learned other skills that help me to make some extra money

I think being in crypto you're in the right space to learn money-making skills that will serve you for many years online. I think it's all about being open to change and willingness to learn and then finding opportunities. The last one is pretty hard as most people don't know how to spot opportunities or how to reach out and convince someone you can solve their problems, which is how economic activity is created

Here, education guarantees you nothing. For someone like me, without the internet, I'm good as a gonner, Crypto virtually saved me by all means

In a country where employment is based on slots and who knows who, crypto and the internet saved us.

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You're obviously right about this. In a position where government has failed is.

Yeah

Yes i agree, the nepotism needs to stop and it should be more about who is the best at the job not who is in a certain country or knows certain people

I understand that, it's the same for me, without the internet I wouldn't be able to earn the income that I have now and I am grateful for it and I know not a lot of people are fortunate enough to have skills that they can use to earn online which is why I think we need more location independent people so they can bring income in their countries and then use it in their local regions to either support other businesses and service providers with their spending or create more jobs in the online market

Hello there @chekohler !

Great post and I could not agree more.

Internet started this revolution that was followed by freelance and then all the different platform where you could hire anyone for a specific task/project. This is the risk for white collars in Western countries.

As COVID19 pushes companies to use teleworking and some employees did not see each other for 6-9 months. Why wouldn’t you hire someone in India doing the same job for less ?

Now regulation kind of protect the workers, let’s see how this develops.

Concerning the use of crypto it means everyone will get the same $ value. You could have played on the local weaker currencies in the past to pay less workers from emerging economies.

@tipu curate

Cheers and thanks 🙏 for the good read

Absolutely it’s going to be interesting how markets adapt most companies that can will do remote work and employees who are the most talented will demand it because they can

Like you said it will be more about who can do the best job at the cheapest price and being in a developing market you force the price down in developed markets for that skilled labour it’s going to make labour arbitrage a lot more dynamic

Companies are always looking to reduce their labour cost! What I also think about crypto is if you get paid in soemtbing like a Bitcoin you can also hold it and allow it to increase in value and buying power over tien so that old labour continues to reward you over time!

That takes a lot of pressure of having to work all the time for an income! So I could work and use some BTC in de-fi and keep it earning and then reduce the hours I have to work to earn the same money over time

At least the crypto layer allows an exchange of value between two entities.

It just shows how costly and inefficient middlemen are abd how much money and productivity we lose with custodial services it just the natural evolution of efficiency and driving of deflation and abundance through technology

Crypto is not the answer to everything but allows you to save money on the transactions for a specific case like this one.

Hola chekohler,

Gracias por destinar correctamente el 100% de las recompensas de está publicación a HP y ayudar al crecimiento de tu cuenta.

Thanks for allocating the 100% rewards of this publication to Hivepower.

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