Jobs, Prices and Energy: a small warm up for a big conversation!
This essay is about jobs, prices and energy. The relationship of these three with the chaos versus order struggle is the main point. I will briefly talk about the first three. Then, I will talk about how the chaos versus order struggle in society works. I will conclude with the solution I will propose: innovation that is aware of future risks.
We tend to have a problem regarding job creation and keeping things affordable. This affects America, Canada, Europe and developing countries such as most in Africa, Latin America and Asia. The thing is that when job creation goes up, prices tend to go up too. However, when job creation goes down, prices tend to go down too. So, many countries are trapped in a loop where to kill unemployment, people who already have jobs then have to pay with more inflation (which is when cost of living goes up). At some point, people then just start penny-pinching, and the economy needs “stimulation”.
Markets can self-regulate because if things are so expensive people spend less money, then some businesses just respond with layoffs because it doesn’t make sense to have more employees than what you actually need. An example is a movie theater: unemployment goes down, more people want to go see a movie, so more people are hired, they want to see movies too, the economy gets stimulated, then the theater’s owners need to raise prices, so now less people can afford to see movies, so some of the people who got hired are fired since they’re no longer needed. This is the law of supply and demand. However, since most countries on earth are considered mixed economies, to forget the role the government’s interventions play via tax reforms, fund grants, infrastructure contracts and social spending in education, justice and healthcare simply doesn’t play the whole flick.
An example I want to introduce is oil. Governments form teams in oil-producing nations to drive the price of oil up to defend their populations. Likewise, governments in countries that just need to bring in oil from other countries will do what they need to drive the price of the barrel down because citizens hate to spend more money than they feel is good. The oil fight is an example I like because order requires people having energy. And disorder, or chaos, comes when countries disagree on how much energy should cost, if anything at all.
Another example is forced labour. Forced labour can be tolerated because, in the short term, countries can bring in cheap goods manufactured with forced labour so their population can have some relief in the price of living. This is a way to “have your cake and eat it too”: you create jobs and keep the cost of living down by allowing entrepreneurs to flood your markets with cheap imports. The relief is short. This eventually costs jobs. A president might think “I need to buy some time for the midterm election” and that is true. He might also blame the guy who came before, and he might actually have some fault. But long term planning is one of the things that made western civilization great. It is non-negotiable. Another problem with cheap imports is that countries with poor rule of law have rulers that are happy to satisfy American and European hunger for cheap goods and services. But the lack of rule of law is actually deepened with this picture. This can breed, to name one thing, cartel violence: more people will want to flee, illegal immigration is a service offered by cartels and mafias, and this drives rule of law even lower in another loop where nobody wins.
What is the solution? I think that in order to get everyone a good job and keep the cost of living affordable so that we can have an ordered society we must ensure fairness in all of our affairs. That is where innovation comes to play: when there’s disorder, something “new” must enter the picture. We must create products and services that bring real solutions to real problems. Only then can we say freedom is never more than one generation away from extinction, but we did our part!
This has been seen before: technological developments are proven to keep cost of living affordable while job creation is at a healthy percent. Economic analysis is more complex, there are other factors such as credit rates for loans, what kind of jobs are created and how, as well as impossible to prevent scenarios for which we need good insurance.
As said in the beginning, innovation isn’t a magic pill: it has its own risks that need awareness and AI is an example we live with today. This isn’t meant to be an exhaustive essay, but a simple introduction to a complex reality. Its purpose isn’t to instruct, but to encourage good discussions regarding the ideas contained therein!





