Simply because this cuts so deeply to the heart of the present predicament of the undertrodden masses, it must be reiterated here:
The competition for jobs at the top is becoming intense. This is not going to change. It is a permanent condition. The era of sustained long-term economic growth relied on private capital. The governments of the world are now competing for this money. There is no way that the private sector will be able to compete with governments. They promise safety. They pay whatever interest rate they must to roll over their debts. Then their central banks intervene and buy.
Capital formation is the source of private-sector jobs. With percentage decreases in private capital formation, good jobs will become increasingly scarce.
This creates a career roadblock to anyone wanting to move up. It creates an even bigger roadblock to anyone who has lost his job and who wants to keep both his career and his salary.
When you are fired, you are stigmatized. You are regarded as a loser. This should not be the case, but it is. The person who is seeking a job after being fired is considered to be defective goods. To get a similar job, unless you have personal contacts in the hiring firm, you will have to take a pay cut. Employers are trying to save money. They will not pay a newly hired person what his predecessor was paid. They know they don't have to. The firm will use that money elsewhere in the system.
It is a matter of the division of labor. He who has money has the most marketable commodity. A firm has money. A laid off worker doesn't. The worker wants to exchange a less marketable asset -- specialized labor -- for the most marketable commodity: money. In this competition, money talks. The person offering money can offer less than before because of the intensity of competition for money by workers.
Your #1 safety net is your job. That net is being tattered by the rise in unemployment.
Mass impoverishment, here we come. I will list the various problems related to the rise of tombuckery and other gangsta lifestyles which follow from this in a future post.