
A Tale of Bewilderment, Excitement, and Dread
The inauguration of Donald Trump in Washington will be a spectacle watched with a mix of bewilderment, excitement, and dread. It promises to be a riveting four years, best observed from a safe distance.
firstly, jobs don't hold the same weight as prices, and secondly, productivity and economic growth come with a dark side.
The Price of Productivity
While Australia grapples with its own productivity woes, the United States enjoys a significant lead, boasting 15-25% higher labor productivity compared to Europe, Japan, Canada, and Australia. This advantage stems from technological innovation, less regulated labor markets, and a booming stock market.
However, this prosperity comes at a cost. The American system allows for extreme health inequality, with a quarter of the population lacking proper health insurance, leaving them vulnerable to medical bills and bankruptcy. Wealth inequality is also stark, with the bottom 50% controlling only 2% of national wealth compared to 7% in Europe and Japan.
The Jobs/Prices Conundrum
Politicians often boast about the number of jobs they create, but the reality is that prices matter more. Despite the previous administration creating 16 million jobs and lowering unemployment, Americans voted based on prices, not jobs. Inflation may have fallen, but prices continued to rise, leading to discontent.
A Changing World
The inauguration of Donald Trump marks a turning point, emphasizing inflation over jobs and highlighting the social and political costs of prioritizing productivity growth. With billionaires like Elon Musk taking prominent roles in the government, the future remains uncertain.
This week's inauguration will undoubtedly change the world, and the coming weeks will reveal the full extent of these changes.