The Cost Of Unemployment

avatar


source
I am more concerned about the government coffers being emptied far quicker than normal and wanting to fill them up by using the people still working.

I think we need to look through a crystal ball to see hat is happening to the economies around the world and what is going to happen next. The one scary part is the amount of businesses closing down or cutting back getting rid of staff. This is a matter of survival for companies right now and letting staff go has to happen to reduce their overheads.

With unemployment rising to record levels this has a cost not only on society but to the country in general. I must admit I have never looked at it this way as I am self employed but it is rather obvious.

Firstly the government has to pay unemployment benefits to all the unemployed and with increased numbers that is going to be a huge bill to cover. What adds even more pressure is the second point and that the tax revenues the government relies on is being eroded away by so many not paying tax anymore due to their employment status.

Less income for the tax coffers and a bigger spend forecast over the coming months or years most likely will mean more money being required via borrowing or what most favor these days is printing. Printing new Dollar bills or whatever currency the country requires cannot continue at this rate an neither can the borrowing as the figures owed can never be repaid. Maybe they will print money to pay those who knows but it is not good for the world economy in general.

I know in South Africa we are at junk status regarding our ratings and borrowing more money against what we owe is not something many will be happy with. We are close to 50% unemployment and will be mid year according to the stats.

What concerns me is the government will try and find a way of increasing their tax revenue leaving the ones left in employment footing the bill for those out of work. Will we se a further rise in VAT (value added tax) as I expect we will which just makes everything that much more expensive. Hearing of an extra 1 cent added doesn't sound like much but it is 1% across the board. The shopping we do daily is that much more expensive and every bill we pay has automatically just gone up.

From all accounts looking at what is going on around us crypto is looking more and more like a safe haven for our wealth as everything else is just losing value. Our buying power with what we have is being eroded away bit by bit by these idiots that are in power who are looking more clueless each day. Leadership is meant to step up in times of crisis and I would not call this stepping up but more like giving in making things worse.

Posted Using LeoFinance Beta



0
0
0.000
7 comments
avatar

crypto is looking more and more like a safe haven for our wealth as everything else is just losing value.

Crypto will provide new opportunities to people all around the world. I expect by end of this decade we'll significant impact of tokenisation.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I think by 2025 we will see this everywhere as things are moving rapidly. When things change they do over time but this is already happening and much faster than we all think.

Posted Using LeoFinance Beta

0
0
0.000
avatar

we got people losing jobs in Greece everyday with a basic salary of 500-550 and the funny thing is the fine for not wearing a mask outside is 500 :P The prime minister announced that this will help the country financially :P

Posted Using LeoFinance Beta

0
0
0.000
avatar

We have something called Social Security over here which am not sure you have over there. You basically pay in all your life and when you get to retirement age you can start drawing from it. There are also other occasions you can draw from it, but I am not going to get into those here. My wife an I have been planning for a while now that the money won't be there for us to get Social Security so we have been doing our own side investments to cover what we likely will not get. It is just a sad reality.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Yes you have to do something. Luckily I have pension from my old work which is very decent and is there for retirement. Who knows if decent will be decent in 12 years though and why I am doing other things to add to it. I do believe in Hive and what it can offer and hoping it will be more than adequate when the time comes to use the rewards.

Posted Using LeoFinance Beta

0
0
0.000
avatar

My wife and I figure if SSI is still around for us to claim it we will just use it as fun money. No guarantee that anything is going to be there unless you take care of it yourself!

Posted Using LeoFinance Beta

0
0
0.000