Those who bought TSLA or Bitcoin have seen gigantic gains in their investments. These gains are constantly touted by the news media. It appears to those watching that money is being created out of thin air.
Consider these bits from the Bureau of Labor Statistics report on December 4, 2020.
- The number of unemployed persons, at 10.7 million, continued to trend down in November but is 4.9 million higher than in February.
- The labor force participation rate is 61.5 percent — 1.9 percentage points below its February level.
- The number of persons employed part-time for economic reasons was at 6.7 million which is 2.3 million higher than the February level.
- 14.8 million persons reported that they had been unable to work because their employer closed or lost business due to the pandemic.
- Average weekly hours was 34.2
- Average hourly earnings were $23.81 per hour
The downside to huge asset gains is that when someone compares the money being made owning assets that are exploding in value compared to working a job for $23.81, the calculus is such that someone feels like they are getting the short end of the stick by working. After all, why not just invest in high-flying electric car stocks that seem to double every month?
I was taught a long time ago that motivation is the key to success. The motivation level of the average worker is certainly not being enhanced when they compare what they are making to the gains made by people owning stocks and cryptocurrencies.