Is an increase in crime rate a symptom of a poorer economy?
Been hearing a bit lately about an increase in thefts at a supermarket my friend works in, and also my parents' place which has always been a safe suburb has had two attempted break ins recently.
Not necessarily a poorer economy, but maybe certain demographics slice of the pie has shrunk, even though the pie has grown.
The economic pie will always be cut and distributed 3 ways.
1, to those providing the labour
2, to those providing capital
3, those funded by taxing 1 & 2.
The general trend is that the economy is growing to be more capital intensive and less labour intensive.
Meaning machines, equipment and software is reducing increasing the output while also reducing the need for labour.
Eg, 1 guy in a $20 million mega digger can move more dirt than 100 guys with shovels, so more of the profits of a mine flow to the shareholders who paid for the mega digger than they do to labour (although that 1 guy operating the digger earns a lot more than any one guy with a shovel).
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So we will see continued stories of unskilled workers suffering and joining doles lines, as the move from 1’s to 3’s.
But, over all the economy will grow, and us capital owners that have made wise investments will continue to earn a bigger section of the pie.
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Bottom line is, teach your kids to invest, or they will be fighting to claim a shrinking section of pie.