Submitted 9 months ago by tigerjerusalem@lemmy.world to [deleted]
In the last 5 to 10 years everything seems to suck: product’s and services quality plummeted, everything from homes to cars to food became really expensive, technology stopped to help us to be something designed to f@ck with us and our money, nobody seems to be able to hold a job anymore, everyone is broke. Life seems worse in general.
Why? Did COVID made this happen? How?
Covid made things worse, but the fundamentals were bad.
We are in the middle of a massive tightening of the labor market as boomers retire and there aren’t enough young adults to fill the gap. This is causing major ripples in the market, with a very antagonistic relationship forming between capital trying to keep labor costs down and labor tired of the bullshit.
This is causing some mild inflation, so companies are jacking up prices since they have an excuse to. This increased inflation is making the time value of money cost more. So now you have companies that were losing money having to scramble to finally generate a profit. This is causing the enshittification of the Internet and the loss of jobs in the tech sector.
The worse economy is causing political problems as it is harder for politicians to justify their positions in power. This encourages conflict between nations and the justification to deny some people of social benefits to create an underclass to benefit voters.
Thank you for this excellent writeup.
A lot of mistakes/repercussions was readily documented beforehand and could have been avoided by proper regulations (even by not removing sane ones such as the Glass–Steagall legislation).
Moreover, Climate Change is affecting a larger and larger part of the stochastic increases in instability: from extreme localized weather and regional aberration to global temperature anomaly affecting every part of the planet differently.
However, we live in a world whereas bombastic contrarians are lauded, even elevated to positions of power or at the center of important decision making processes. No wonder we keep being surprised by avoidable disasters.
The question "Why has the world gone to shit in the past 5 to 10 years" has routinely been asked every five to ten years throughout history. It's largely due to the perceptual biases of the human mind.
Capitalist governments are pro-finance, not pro-people. Totalitarian gvmts (China etc) are pro-system, not pro-people. They’re just different ways of maintaining classes of people who control the power/finances.
There’s always been an uber-rich elite, all the way from the first tribal chieftain or Pharaoh or whatever until now and there’s always been a huge underclass of the rest of us. The first law of any hierarchy is to protect the people at the top.
What we see today (in Westernised countries) is the natural, logical progression of economics driven democracy. Economic theorists say wealthy people create wealth by purposefully distributing it via jobs etc but in reality they do everything possible to minimise the loss of what they see as their money by abusing labour laws, privatising everything, trying to kill unions, creating convoluted laws to protect their fortunes, avoiding taxes and hiking prices up to the point most of us are just about surviving with enough carrot to ignore or pretend we don’t see the stick.
And we’re willing participants in that system. We know this is happening but we’re dazzled by lotteries holding out the chance to join the rich, promises of work making us rich and a media which lionises the elite as some kind of fabulous aspirational status to the point we have people on social media faking a rich lifestyle for internet points.
The uber rich believe they’re better than us and our acquiescence with this system really means we agree with them.
The powers that be realised that a non-stop feed of bad news for you to Doom scroll makes people apathetic and apethic people don’t protest, or revolt, or even vote against you. They go through life scrolling on their phone and just accept whatever life gives them.
Shareholder value. Companies are cutting everything they can to increase stakeholder value: wages, quality, support, ownership, etc.
So, before I say “capitalism” like everyone else id like to argue many of the monetary/economic policy can be used by either authoritarian state capitalists or free capitalists alike.
This can be useful^ it’s a brief read. Also I love Adam Taggart, he’s a really good person to follow on YouTube for economics.
Things were getting bad for a while, and we kick the can down the road until an exponentially worse problem arrives, then repeat. Let’s look at COVID for now tho instead of going back decades
COVID happens, society has to adapt, and now there’s growth issues with the economy (growth domestic product or gross domestic income)
First, government gives a shit ton of stimulus checks to the consumer market. A market is a collection of buyers and sellers. The consumer market is a collection of buyers and sellers who spend their money on one thing and don’t retain that value. So most of the stimmy money went from consumers to corporations. To give you an idea, over the last 3 years we’ve seen 35% of inflation that is never going away, it will forever weigh on the consumer market (and that’s the market that needs to be well off for an economy to be anything more than the stock/financial market)
Second, Fed sees an incoming recession so they lower interest rates to make banking loans cheaper to encourage investment to increase growth again. This means people who are not suffering from the economy can easily afford another house since they’re basically not paying any interest on it, then rent it out to Airbnb or whatever.
All these things cause growth in the short term, while making inflation a much worse problem in the long term.
FED starts raising interest rates slowly over the last year or 2. Now they’re about to lower them again which is a sign we’re in for another recession, but let’s look at what raising interest rates did:
Banks operate on a very tight margin and raising interest rates hurts banks in the short term and takes a while for markets to react to (which is part of the reason why we saw so many bank closures like silicon valley bank)
But raising interest rates also makes it more expensive for people to afford mortgage payments.
H.O.P.E: housing , orders, profits, employment
When mortgage payments got more expensive housing got expensive. When housing gets expensive orders go down and/or credit card usage goes up (which is another separate problem / indicator). When orders go down profits go down, and when profits go down employment goes down.
It should be worth noting the one thing J Powell did right was creating slack in job openings to prevent a complete crash in the labor market, but that’s the last thing to crash in a recession so we’re still just kicking the can down the road.
That’s the best analysis I can do with respect to COVID, but some other interesting things:
The average boomer is 2 years into retirement. The labor force is going to continue shrinking for the next 7 years. It won’t be this bad in America, but in south east asian countries, there’s going to reach a point where there are more old people than young people, and when that happens there’s not enough people to care for the elderly and support the rest of the economy, so both tend to suffer. America will feel this pain as well, but our population “pyramid” is more of an hourglass, where south east asian is an upside down pyramid
Also, geopolitical tensions are likely going to get worse over the next few years. China manufactures everything consumers like that don’t have to do with defense, so things like smartphones are going to get much more expensive , and tech stocks are likely to suffer.
Also, there’s tons of shadow banks with stealth liquidity where there’s no information how much money they have. So however bad inflation was the last few years and will continue to get with the Fed cutting rates, it can get MUCH worse once those banks start releasing their liquidity.
So, things are bad and they’re going to get worse before there’s a chance things get better. I really recommend listening to Adam Taggart and the people he interviews to help form your decision making
Where can I find an unbiased list of these shadow banks?
From Google:
Examples of shadow banks or financial intermediaries not subject to regulation include hedge funds, private equity funds, mortgage lenders, and even large investment banks
Shadow banks aren’t illegal, just have loose regulations
Greed
Are you American? Because I seem to recall between five and ten years ago a particular event that changed the way we ran a lot of the government.
Mostly late stage capitalism and Citizens United.
Your finally realizing the end game of capitalism. The 1% trying to hoard everything and milk 99% of the population. I call them piggies because they’re gluttonous with money.
Thing is most people on earth would do the same if given the opportunity to become ultra wealthy.
The issue is the system allows people to become ultra wealthy
No, most people would not.
Most people would share, or hit a point and think “OK, that’s enough for anything I really want personally… I’m gonna try and help out now…”
Nobody in their right mind should want a world where they are privately wealthy, but publically impoverished.
Because then, you have no security.
Someone will always be gunning for you.
You can stave it off by layering brute force, and laws, but there is no such thing as 100% secure. Eventually something will make it through, and wreak havoc. And because all you now care about, over everything, is whatever paltry “wealth” you’ve managed to secure, the catastrophe is magnified orders of magnitude. You have no real friends or community to turn to, nobody who would support you if you didn’t have the most, and the rules didn’t make you “king” because of it.
It’s a sickness.
Nah, only about 5% of the population have antisocial personality disorders. That’s a lot of people, but not “most.”
My take: the result of decades of incompetent leadership, at all levels from the government to individual households, that ultimately lead to a society that mainly uses dilatory tactics instead of finding solutions to its issues.
What happens when the economy crashes? We push the goalposts back a few yards so that it’s actually better now and will become a problem later instead. Notice how the frequency of market crashes is increasing? It was every 50 years or so, then it was every 10, now we’ve had 3 in 5 years, yes I’m fucking counting COVID you had literally over 60 years to prepare for a worldwide pandemic and you sat on your asses.
What happened with education? Well let’s see. Why do we pay for education in the first place? To increase our knowledge and push the boundaries of human civilization, or to put it bluntly: we don’t wanna live in a world filled with idiots. But like why do we need education? Cuz like jobs or something…Ever wonder why you MUST have a degree for a job? That’s a legal requirement, if something is on the job posting as a requirement then it’s a fucking requirement. Suddenly everyone needs a higher education, because the job posting is a legal requirement that must be met, else ye suffer the consequences of immediate disqualification. Fortunately the law miraculously doesn’t really care which degree you have, the companies get to choose how narrow the scope is and if they don’t do that well that’s on them lol xD! So we need a degree, but let’s say we don’t wanna put in the effort to learn all that hard shit. Besides, we just need survivabile minimum wage, so let’s aim for that. It sure is convenient that all these now impacted universities made up all these new bullshit degrees so they could pretend to deal with the influx of morons that are getting intimidated and bribed into their schools via their parents. This sounds like a game to me, and I love games. Wait wait wait wait. We said that we want education because we want people to be smart, but like technically we only need education to get a job. Suddenly education is like this super fun game where you get sorted into a socio economic class in a fun and interesting way. And then people realized they could influence that as early as elementary school, and well gee fuckin golly! They get to vote and control the public education because that’s how public school works. And if we loosen up the restrictions on what our kids need to get good grades, their chances of getting into college get better. Guess what? Money also works too, if we have money we can avoid the tiring scramble of public education and just pay to win baybee!!!
Why does the everything suck? Because it’s owned and operated by investment firms and run by people who are the result of decades of systemic degradation. And who’s to blame? The worse generation in human history. The only generation in United States history to have a losing record when it comes to war lose, while simultaneously being the single generation to have started and sustain the most wars! The same fucking generation that didn’t die off at 55 because their children didn’t huff lead gasoline like they did for Christmas and actually got bothered to learn medical science - as much as I shit on the education system as a whole, there are always some tryhards that slip through. The same generation that still controls 60% of the political offices in this country, while at the same time being composed of the top 1% of mentally unstable weak and decrepit elderly part of the population. The same generation that voted to fuck over retirement pensions from the previous generation back in the 70s or whenever it was, and then now in past decades have undone all of that to secure retirement protections for them suddenly now as they reach their sunset years. The same generation that still currently in the current fucking year of two thousand twenty-four are the two frontrunners for Presidential candidacy.
And you know what the funniest thing about it is? It’s not just the United States. How’s Japan looking over across the Pacific? A problem with a top heavy elderly population? Wow who could’ve guessed. What about the boys across the pond? What does the British parliament look like? Who are still the leaders of China, Russia, North Korea? What families are still in power in the Middle East?
Our ancestors have failed us. They have failed their brothers and sisters. They have failed our entire goddamned species. I am embarrassed and ashamed for all intelligent beings anywhere and everywhere in any reality where intelligence is possible that we are capable of such idiocy.
I take great solace in the fact that they will not be around long enough to etch their final memory into the stones of history. And we will.
Despite all of that it feels to me less like things are getting worse and more like a loud death rattle from a bloated creature - the final shout before the eternal void. I see the same feelings as mine in both my cohorts and in the future generations. I have hopes for the future and strongly believe that the world is just now entering the upswing. It’s painful and awkward right now while the old skin sheds, but I am confident we will emerge from our chrysalis transformed into something greater. Maybe that guy who brought up the 12 year delay on the Mayan calendar shit earlier in this thread was on to something; the timing is just too coincidental.
My theory? The Mayans were right. 2012 was the end of the cycle, and so the 12 years before and 12 years after are the transition period.
So we’re in the final lap, we just have to make it to December
(I’m not coping, you’re coping)
Because most people have stopped giving a fuck.
I’m serious. Remember all those memes a couple of years back about not giving any fucks? Their chickens are now coming back to roost.
A lot of people have simply decided that it was no longer worth the effort to try and be a good person, and to just shut themselves off and take care of their own needs. And perhaps it was necessary at the time because they were simply tired of putting in effort while others decided to take and take and give nothing back, but clearly, this isn’t a viable long term solution. The Roots put it quite well in their song How I Got Over:
Out on the streets, where I grew up
First thing they teach you is not to give a fuck
That type of thinking can’t get you nowhere
Someone has to care
The less people care, the colder the world grows. If no one does anything charitable, every interaction becomes a matter of win or lose. Now I’m well aware of just how difficult it is to be kind in a world full of greed where everyone seems to want to take advantage of you the moment you show any sign of weakness, but unfortunately, that is the only way anything will ever change.
For if you love those who love you, what reward have you?
Do not even the tax collectors do the same? And if you greet your brethren only, what do you do more than others? Do not even the tax collectors do so? Therefore you shall be perfect, just as your Father in heaven is perfect.
Matthew 5:46-48
Two words:
Willful ignorance.
Have you read Cory Doctorow’s book on enshitification? I think he focuses more on the Internet but might help answer your question.
Because anyone who was old enough to reminder how bad the great depression and world wars were are all dead and the people in power fell like they have something to prove.
I mean why should it be just their parents and grandparents that made the history books?
I’m coming across this post after reading an article about how Netflix is bathing in money and now making their options worse for customers, how the most wheel of a Boeing 757 fell off, and a how a country has been so free of criticism for decades that they’re able to commit genocide for over 3 months.
I’m having a hard time seeing hope in our future. Every company operates solely to extract as much profit as humanly possible (and not as Artificialally Intelligently as possible) without considering for a single moment how a decision they make may effect their relationship with customers or the quality of their product. I know companies are in it to make money, but they used to at least correct decisions in the face of public outcry. (Hell Microsoft did an about face on Xbox One features in 2013 after public outcry)
But things seem different now. Since the pandemic and the overall regard for human life went up, companies almost feel vindictive and emboldened to do even more to fuck customers over. Its almost like they’re holding a grudge over consumers for considering anything in life over their spending habits from March 2020 - September 2021. After all, the biggest push to “return to normal” was to get the economy back on track. I’ll never forget some asshole on a fox news segment saying “We gotta return to normal people. Yes some people will die, but grandma would sacrifice herself for the economy.” That’s when I lost all hope of things getting better.
We’ve had the chance many times to change the way we act as a species and potentially make the world better, but somehow we always fail to do so. We’re just fucked.
Are things demonstrably worse? I’m reading that they are but I’m not seeing that they are. I don’t live in a great area, but people generally seem as they’ve always been. Some struggle. Most are fine. Life goes on.
I find it crazy how basically every Marxist since, well Marx, has pretty much clairvoyance powers. It’s not that, it’s just that material analysis really is the best way to understand reality. But when all you have are vibes, ideology and moralism, Marxists do seem like witches.
But basically, just read and watch some Marxists my friend. Even light-Marxists like Yanis Varoufakis are good at “predicting” the future.
We have all been expecting this since the 1800s lmao.
It was those damned churches staying open during COVID
Globalization. Exploiting developing countries, export jobs and environmental damage, hiding profits. No so long for a corporations had to be careful not to shit where they eat. Now they can shit in Asia and eat comfortably in USA/Europe. Everyone lost on that.
it's just how capitalism works. Read Capitalist Realism by Mark Fisher if you want to get a better idea of how things got here
Shallow consideration, multiplied by technology and laziness.
Inequality
Corporate capitalism.
Profit before people in literally every facet of modern western society.
Years of believing the adage that “we j should be happy just to HAVE a job”, which have carte blanche for companies to treat their employees like line items on a spreadsheet; something to be minimized as much as possible in order to squeak more pennies into a stock price.
Literally every bad thing today is the wholly expected endgame of 80s trickle-down economics.
givesomefucks@lemmy.world 9 months ago
Unregulated capitalism…
This is the natural result of that.
COVID factored in because the handful of corporations that own a shit ton of companies figured out 8% inflation could be used as justification to double/triple prices, and if they all did it, consumers had no options.
In regulated capitalism, the government would step in to prevent this type of price fixing.
But when both political parties are “pro business” and take donations from those huge corporations…
Then corporations get away with lots they shouldn’t
AnneBonny@lemmy.dbzer0.com 9 months ago
like this?
nytimes.com/…/yale-columbia-price-fixing-settleme…
reuters.com/…/drivers-sue-us-shale-oil-producers-…
texastribune.org/…/rice-university-price-fixing-l…
propublica.org/…/doj-backs-tenants-price-fixing-c…
apnews.com/…/egg-producers-price-gouging-lawsuit-…
reuters.com/…/frances-saint-gobain-others-hit-wit…
givesomefucks@lemmy.world 9 months ago
I looked at some of those, and it’s private citizens suing corporations…
Even the rent one with the DOJ, it’s just them becoming involved in private lawsuits…
That’s not the same as the government regulating capitalism.
And while that one is sort of related to the topic, not really. It’s because the price fixing is automated by a computer program a bunch of landlords used.
In the future if you only give one link and some kind of explanation other than “like this?” The person you replied to can probably do a better job of helping you understand.
JustMy2c@lemm.ee 9 months ago
Yes, but a HUNDRED TIMES MORE! AND WITH ACTUAL PENALTIES INDEMNITY ETC