Crypto Will Drive Labour Cost Deflation

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.

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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