The pandemic has exacerbated some tendencies in capitalism that have had a negative effect. For example, working from home in some sense is a good thing. It’s mostly a good thing. People don’t waste so much time commuting. They can spend more time with their loved ones. But there are problems. As Professor Scott Galloway said,
If they can move your job to Denver they can move it to Bangalore. So be careful for what you ask. I think you are gong to see continued pressure on the working class as we get better and better at outsourcing jobs.
I am a subscriber to Photoshop and Lightroom two photographic programs. A few years ago, I had to subscribe to them. I could no longer just buy them; I had to rent them. I hated paying $12 a month. Now it’s more of course. Then I realized there was a benefit. They had a help line. I am not an expert in the program. I often need help. So now I can phone them 24 hours a day during the week and get my questions answered by very knowledgeable people without extra charges. I love that.
And, of course, these helpers are always in India. At first, I had a little trouble understanding what they said because of their accent, but in time I got to know them and like them. They were very helpful. They taught me a lot. But they are Indians and they answer questions for all the people in North America. These are skilled jobs. They know their stuff and the programs in my opinion are complicated. Far too hard for me to do without expert help. It’s too bad they can’t hire North Americans to do it, but the company I suppose figures they can’t hire North Americans to do it at the money they offer. But this is outsourcing technical expertise. These are not laborers.
Being near the headquarters is a valuable thing for workers in a corporation. It allows people to network and rub shoulders with executives. That proximity is very valuable for a worker trying to build a career. Because women still spend more time typically than men building relationships with their family, they will tend to gravitate toward working at home. And this of course is a good thing, but it will be a drag on their careers because they will lose the benefits of proximity if they work from home instead. As a result, this will be a drag on their march toward greater equality. And that is not a good thing. Currently, about 7% or less of CEOs for the S & P 500 are women. If women lose this proximity to power this unfortunate situation will get worse not better. As a result, Galloway asked,
“Are we building an infrastructure at HQ that is just filled with white guys? There is just no getting around it. Proximity to headquarters puts you on a different path in terms of advancement within the organization. So, I think there’ll be some positives and some negatives that we will have to adjust for and recognize that people who serve and have the money or don’t have the kids or have the ability to live close to work. As a tribal species that loves affinity and proximity, we will have to adjust for people who aren’t capable of being at headquarters every day.”
For these reasons stimulus from the government should be focused on protecting people and the environment. If we took 2 or 3 trillion dollars of stimulus and divided it among the most vulnerable households, the effect on society would be remarkable. Stimulating big corporations just doesn’t do as much. People who are in the top 10% are living a great life in this pandemic. I admit I am. Life for me is great. I spend a lot of time with my wife. We read a lot. We watch some excellent TV shows together. We miss our family and friends terribly, but we are certainly not suffering. The key is how can we protect the bottom 90%? Stimulus should be shaped to do that. If you took the bottom third of American households and divided $3 trillion among them each household would get $100,000. That could be deeply transformative. Society would be very different. And those people would spend that money inside our economies. They would not stash it away in Swiss accounts.
Or let’s say it’s even less money. It would allow those people to make better decisions. Studies have shown how poverty makes it very difficult for poor people to make good decisions. People would not have to choose between paying for their insulin or their rent. They would not have to choose between paying for food or education for their children. Imagine that. They could actually do what’s best for their families. Life in our society could be transformed. As it is now, many people have to get part time jobs with Uber to pay for food or rent or clothing for their families. So instead of staying now with their kids and helping them learn remotely they are out working at 2 or 3 jobs. This is not good for society. There is a better way.
We do need to reset. Only the extremely comfortable think things are perfect right now. People like my member of Parliament.