Cherish You Savings 'Cause You Won't Be Earning For A While
November 18th 2008 23:40
Dear Generation Material Objects, I hope you don't have any plans to pay the bills or move out of home anytime soon because you simply can't afford it. See my dears, because we live in an interlinked world thanks to globalisation and comparative advantage, we find that when one financial institution topples over, it takes all its investors and business associates with it. Now, as you may have noticed, we're having a bit of a money crisis; it started in the US with sub-prime mortgages and now we're feeling it world wide.
Iceland for instance, it's top three banks have US$61-billion of debt between them, that's 12 times the size of the Icelandic economy!. Now, I'm not saying jobs will be impossible to find in Iceland, just that if they have that much money owing, I think they'll focus on paying that off before hiring more people who money will be owed to in the form of wages.
Looking to earn money in the world's largest economy? Fat chance, the US is in recession but considering this is the country that started this economic fall down, do you really want to go putting your money into it?
Okay, you decide to look for a way to earn money domestically, well, I have some advised for you.
If you're job hunting, stay away from sectors such as retail and hospitality. Why? Well people only shop, eat out and drink when they can afford to. Less people with money means less people to do these things, which means less employers in these areas will be hiring. If you want my advice, I suggest you get into industries that have inelastic demand. That is, they provide goods or services which have no close substitutes and which are necessary. Think undertaking or arms dealing. Hey two birds with one stone- get the guns, kill the people, and bury them- you could totally be a hit man with additional services! I will however, be charging a 10% commission for giving you that idea.
Iceland for instance, it's top three banks have US$61-billion of debt between them, that's 12 times the size of the Icelandic economy!. Now, I'm not saying jobs will be impossible to find in Iceland, just that if they have that much money owing, I think they'll focus on paying that off before hiring more people who money will be owed to in the form of wages.
Looking to earn money in the world's largest economy? Fat chance, the US is in recession but considering this is the country that started this economic fall down, do you really want to go putting your money into it?
Okay, you decide to look for a way to earn money domestically, well, I have some advised for you.
If you're job hunting, stay away from sectors such as retail and hospitality. Why? Well people only shop, eat out and drink when they can afford to. Less people with money means less people to do these things, which means less employers in these areas will be hiring. If you want my advice, I suggest you get into industries that have inelastic demand. That is, they provide goods or services which have no close substitutes and which are necessary. Think undertaking or arms dealing. Hey two birds with one stone- get the guns, kill the people, and bury them- you could totally be a hit man with additional services! I will however, be charging a 10% commission for giving you that idea.
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Comment by Robert Caldwell
Market Herald
First off Iceland's economy was and still is doing quite well outside of its financial sector. That specific sector won't be hiring much but the rest of the economy will be.
The U.S. is not officially in a recession last I checked. Were probably heading towards one pretty quick but it hasn't happened yet.
Earning money in the U.S. is quite easy still. There are still plenty of jobs to be filled. Once again outside of the financial, manufacturing, and commodities sectors.
Retail as whole has not suffered job losses yet. After the holidays the market will tighten because companies will no longer need holiday temp work. Its actually better to get a holiday temp job in hopes of keeping the job after the holidays.
Lastly I am going to flat out disagree completely with your idea to look for industries with inelastic demand. Elasticity relates directly with the quantity demand of a certain product relative to the change in price.
Not only that, pretty much all industries have many substitutes and there is little correlation between jobs and comparitive advantage if you look at entire industries.
If your looking for a job go with what you've done before and have experience with. also health care is always in demand along with any service helping the elderly.
Robert
P.S. I do like the idea of being an arms dealer
Comment by Wynona Lavota
Generation Y Life
I must admit I am a bit of a sensationalist just to jazz my posts up a bit. I've mentioned before I never do any intensive research for my posts.
I heard the US wasn't, than it was, than it wasn't in recession- take your pick.
With inelastic demand, I had petrol in mind in that there is no close subsittute for what you put in your car but seeing as petrol prices are falling, I decided to stay away form that can of worms and all its politcs.
I still stand by my elasticity argument (again petrol in mind) in that as prices were rising, people had no choice but to pay for it and not many (as far as I know) opted for public transport which IMO is quite an inferior substitute... where I live anyway.
Comment by Robert Caldwell
Market Herald
I agree the idea of recessions and when a recession occurs is a bit obscure. The actual definition of a recession is 2 quarters of consecutive drops in GDP. This has not happened in the U.S. yet.
However, when a recession is declared it starts at the first GDP decline which is why there is "confusion".
inelastic demand has absolutely nothing to do with jobs. Just the price of goods. Google define.
Petrol is doing terrible right now and in a recession global or otherwise it will only get worse. The price of oil has plummeted and that is where the profit is for these companies. You will see major job CUTS in this sector because companies are putting projects on hold. World demand of oil is set to decrease next year for the first time in 30 years. You won't see many job openings here until we see oil around $80.00 a barrel again and that could be a couple of years down the road.
Comment by Wynona Lavota
Generation Y Life
Inelastic demand does indeed refer to how price sensitive demand for a good is- I was just extrapolating the notion. Again, such is the nature of my blog