The internet was a big fucking deal, and people still don’t really understand how important it was yet. White collar America will never bounce back from the impacts of financialization and globalization, and the same can probably be said for Western Europe. This isn’t because of debt, or because of the policies implemented by leaders. The white-collar recession is actually being brought on by two very new factors: generative AI and remote work.
Generative AI is a new spin on an old technology. The concept of a Chatbot has been around since the 1960s, but recent leaps and bounds in Artificial Intelligence Technology (along with some updated user interfaces) made them gain widespread interest in 2022. When Artificial Intelligence systems and Chatbots are linked together, we get software like ChatGPT, which replicate the processes of thinking and responding, essentially acting like human assistants. The technology isn’t perfect, but it’s nothing short of magical for those of us who remember a time before smartphones.
Generative AI kills the middle management and paper pushing classes. Why? Because it makes intellectual tasks easier in the same way that machines made physical tasks easier. Intellectual tasks that required 10 people to complete may only require 2 or 3 heads being put together once generative AI reaches its final for. We still don’t know if AGI (Artificial general intelligence, a form of AI that “possesses the ability to understand, learn, and apply knowledge across a wide range of tasks and domains”), is possible. If it is, the effect of Generative AI will be even more drastic. A single creative person could theoretically operate an entire virtual company using AGI. In the future, humans will operate artificial intelligence the same way we currently operate forklifts.
If this were the only change being undertaken, it actually would be less of a big deal for those living in the developed world. Sure, many while collar jobs would be lost or phased out, but people can be reskilled, and the improved quality of life in “third world” countries would lead to increased fairness. Instead, workers in the west (along with many high earners in emerging markets) are being faced with a double whammy. The concept of the internet has also been around since the 1960s, but it’s only during the 2020 COVID 19 pandemic that the world began fully utilizing its capabilities.
COVID was a wildcard that nobody could have predicted. People didn’t want to get sick, so they locked themselves indoors. Entire countries came to a grinding halt, because meeting in person was forbidden. In order to keep making money, many businesses were required to use the internet to undertake operations. People quickly discovered that they could do their jobs from anywhere on planet Earth.
The more shortsighted among us thought remote work meant the beginning of heaven. Unfortunately, it wasn’t so simple. While remote work did allow for flexibility in the work environment, it also made the job market more competitive. Indians are unfortunately stereotyped as a result of this. The low cost of living in their country causes people to view them as an endless source of cheap labor, which in a sense they are. You can certainly get ahead doing remote work, but it’s definitely not as simple as just getting up and getting paid $50 per hour. You’re competing in a globalized marketplace, against people who can easily raise their families on $1500–2000 per month. It will take time and effort to be able work remotely and afford a USA-type lifestyle.
The United States will likely remain the richest country in the world for a long while. There’s a lot of innovation in the country, and the nearshoring of manufacturing means that people are going to have cheaper goods and lots of jobs available. That being said, many places around the world are catching up to the United States. If they do things right, they can harness the power of the internet to take away the white-collar jobs of many Americans. There’s simply no way to outcompete those from the global south. Specialized, licensed workers such as doctors and lawyers will be safe. But otherwise, it’s likely that your role being competed for by someone in a country like Kenya or Nigeria.
To survive this period of transition and turmoil, there are two very smart moves that one can make. The first is to learn to work with your hands. The second is to move to a low cost of living area. The world is full of overpaid white-collar workers, and these people have inflated many markets with the consumer debt they’ve taken on. When it all comes crashing down, you want to have a real skill, and you don’t want to be left holding the bag. Sales and marketing are real skills, and they’ll serve you for life. I’m glad I spent time learning these skills, because they’ve kept me well fed and alive during times of hardship.
This article wasn’t meant to be alarmist. I’m actually optimistic about the future and am a firm believer in the idea that right now is the best time in history to be alive. That being said, the days of paper-pushing your way to a big house are likely numbered. If you want to adapt to survive, follow this blog. While I do discuss the world’s problems, I’m also interested in creating solutions. Thanks for paying attention.
- Freedom Finder
