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Since capital grows exponentially through interest and/or returns, more and more profits have to be realized faster and faster. In order to be able to achieve even more profits, costs must be reduced. One of the cost factors is human labor. If at first the workforce was simply used more rationally, for example in the assembly line production that Henry Ford used for the first time, today it is increasingly robots that take over the work of humans. This happens in almost all areas, not only in production but in the entire chain up to delivery. Where labor cannot be replaced, work is outsourced to countries where labor costs as little as possible. In the Roman Empire and the end in the USA slaves were brought into production or service facilities, but today the reverse is the case, today the work comes to the poor countries. Of course, this traditionally means a high number of unemployed in the Country of the Market.

Worker USA000s Spacer 2Worker Germany000s Spacer 2Worker Argentina

On the one hand there is allegedly a shortage of skilled workers on the other hand there are more than 3.19 million people without work in Germany, plus about 1.5 million who are hidden in some "measures". So probably ~4.6 million, accordingly an unemployment rate around 6.5%, in the USA we have 5.36%, Mexico 4.14%, Chile 8.86%, Venezuela 35.54%, Brazil 14.2%, Italy 9.4% , Spain 13.38%, Portugal 6.5%, France 7.8%, Sweden 7.84%, Austria 6.1%, Kosovo 25.7%, Serbia 9.9%, Croatia 7.5%, Romania 5 .6%, Africa on average 10.24%, India 8.0%, Russia 4.8%... In Switzerland it is only 2.3%, but even there, despite this ominous “lack of skilled workers”, there is no full employment. Incidentally, in Cuba, which is really destitute, the unemployment rate is only 2.6% and is expected to fall to 1.6% by 2024. The so-called "shortage of skilled workers" usually arises from the capital-related inability of companies to train appropriate skilled workers.If the need and the prospects of profit are high, as after the Second World War, training of own specialists is not an issue at all.

Incidentally, around 1968 we had almost full employment in almost all major manufacturing countries, after which the unemployment rates rose again and then never fell below the global average of around 5%, currently an estimated 6.5%.

Why is that? Let's examine this graph to illuminate the matter.

Point X

The point X where the workers and employees end up on the street

After 1945, the economy was back to where it was in 1890, and many cities in Europe were badly damaged. So there was a huge need, the economy shot up by the need, new production facilities and processes to the same extent as before the Second World War by the war economy. In the USA, on the other hand, a catastrophe was looming, and the economy there, which had been ramped up for the war, was in danger of collapsing again. But now the USA invented the so-called "American way of life" The conversion from war to peace mass production. This was achieved not least thanks to a new medium from Germany: television. With television it was possible to create artificial needs where people lived, in their homes, in their living rooms. First of all, the world economy rose and rose. Cheap energies also contributed to this ongoing boom. But around 1968 the saturation point was reached. This means that the first major reconstruction was complete, almost everyone had the new household appliances that were advertised, and that the rest of the home was also set up for the time being. The largest investments had also been made and so the characteristics of economic growth, capital growth and profit intersected. From this point X onwards, the exponential growth of capital takes full effect. Plenty of goods were still sold, there was still a lot of room for improvement, especially with motor vehicles, new picture and sound devices came onto the market, traveling abroad in summer became fashionable... but from this point X it was no longer possible  to realize capital growth with only economic growth. Now the profits had to be increased in order to be able to realize the enormous increase in capital.

The first rationalization measures have been carried out. What was meant, of course, was automation in vehicle construction, for example, although it is probably a bit far from describing all these measures as rational. At the end of the chain, the whole undertaking leads, as is already becoming apparent, to the temperature collapse of the earth. It would probably have been rational to limit capital growth from point X onwards. Everyone just goes on working and earning their money without ever-increasing capital on the account and without constantly increasing profits, prices and wages, i.e. also without inflation. Then there would not be these permanent unemployed. People who are no longer allowed to participate in working life for cost reasons.

So far, the leaders have still managed to keep things somewhat under control. Even after the financial crisis of 2008/09, the banks, with the help of politicians and central banks, were allowed to continue as if nothing had happened. But the credit burden is increasing from year to year and disruptions such as a pandemic and war do not make things any easier, because the national debt is currently increasing by a multiple, just like the prices and of course the profits. In 2019, ten years after the financial crash, the prospects for the economy were already very bleak. With the corona virus, a culprit had been found to blame for the rifts, but in reality inflation was already pushing from behind. In 2021 it finally broke through, first in Turkey, then in southern Europe, the USA and then also in Germany. The trigger is clearly the ultra-loose monetary policy of the central banks, in conjunction with a low main interest rate and not the war in Ukraine. This war, however, is once again a godsend for the world of finance and industry. Weapons are being sold, reconstruction could take place if we don't slide into nuclear war.

But even if there is a reconstruction in the Ukraine, this will only lead to more employment in the typical short term. In the end, unemployment figures will probably continue to rise.

Full employment we can only achieve  if we roughly restore certain conditions, not all, of 1968. There are high-quality, long-lasting products that are repaired or upgraded in workshops, by people and by hand, and are further used and can be optimally recycled by human hands at the end of their lifetime. However, this only works if we stop chasing a system of delusion and finally carry out a real rationalization of our financial world and our economy.

Full employment
through real rationalization

The Solution

On the "Solution" page you can read how this is supposed to work and why it never worked the way it is and will never work.

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