There are actually two recessions:
The first is the COVID-19 one, the one that inevitably comes and then inevitably goes. There’s plenty of evidence that it will end by this time next year, if not sooner.
The other recession is the one that will cause the elimination of entire job markets, yes that would include Boston real estate brokers, Stockbrokers, and even lawyers – I fear that this recession is here forever.
Why do we believe that jobs, which are paid really good money, can’t be systemized? The internet has already squeezed inefficiencies out of many low paying jobs; just recently I went to a large store chain with over 10 rows to pay for our goods and only one row had a check out clerk. Here’s another recent example, do you know, you no longer have to go to the grocery store to pick up fresh fish when you can easily pick it up from the fishermen himself at the Boston Seaport docks.
The onset of the coronavirus has expedited the elimination of a wide swath of the jobs with all job skills. I have a friend, who works for a large commercial real estate firm leasing commercial office space, annually salary with commissions over $200k – not this year.
There’s a race to the bottom
The first step occurred in the industrial age. Real estate buildings were built where workers came together to efficiently assemble cars, appliances, and clothing, etc. places where local inefficiencies were trumped by the gains from mass production and interchangeable parts. If local labor costs went up then the factory would move to China or Mexico. Why? Because what choice did they have? If they didn’t, their competitor would.
If the unaffiliated consumer can save a dime by clicking over here or over there, then that’s what’s going to happen.
The industrial age, the one that started with the industrial revolution, is fading away. It is no longer the growth engine of the economy and it seems absurd to imagine regardless of what politicians tell you, those lost jobs are NOT on the horizon.
I’m not a pessimist, the new revolution will be about connection, which is good. This will create all sorts of new productivity and new opportunities. Most of the wealth created by this revolution doesn’t look like a 9 to 5 job, not a full time one anyway.
When everyone has a laptop and connection to the world, then everyone owns his or her own factory. Instead of coming together physically, we have the ability now to come together virtually, to earn attention, to connect labor, and deliver value. As a downtown Boston real estate broker we can provide you with real-time sales data and the newest Boston condos for sale.
The Future
The future of the job market is now based on innovation, inspiration and to a certain degree of storytelling – because it involves connecting with people between and among people
This means we may need to change our expectations, change our training, and change how we engage with the future. Still, it’s better than fighting for a status quo that is no longer. The good news is clear: every major crisis is followed by a lifetime of growth for the next new thing…
As I told one of my friends the entrance to my Boston real estate office in no longer on Charles Street in Beacon Hill. It’s on the internet.
This revolution is at least as big as the last one, and the last one changed everything.
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