We need to redesign the economy

This is a summary of an article from Fortune that I recommend everyone to read. The insights the writer, Karan Chopra, gives is really valuable and opens our eyes to how poorly many people in our society are rewarded. 

Many want an economic recovery. At the same time, this economic recession and pandemic have given us is an opportunity to redesign the economy. Low-wage jobs are assumed to be low-skilled when in reality, you have high skilled jobs with low pay. Because problems like that are a reality, things need to change.

By redesigning the economy, we can have an economy that works for the millions of workers who had been left behind even before the pandemic. And to start the redesign, we need to realize 2 things:

• Wages ≠ Value
• More jobs ≠ More opportunity

Wages don’t equal value

That fallacy was created from the supply and demand concept from economics. People think that because there’s an abundance of people that can do a job, that it’s considered lower value. People also assume that people that work low wage jobs have fewer skills when in reality, that’s false.

Consider this example:

Customer service reps and human resource specialists both require critical thinking, persuasion, and active listening. Despite the skills being similar, human resource specialists make more than customer service reps.

Another example where wages don’t equal value is when you think about the importance of low wage jobs for companies. Factory and farmworkers continue to provide food and materials to us during good and bad times. Plus, if they stop working, the company stops making money.

And there is also valuable work that isn’t being monetized as people do those tasks for charity. Imagine the amount of money they could be getting for their unpaid work. Overall, salaries don’t reflect their importance and the value they give to their communities

Now, let’s talk about how more jobs doesn’t equal more opportunities.

More jobs don't equal more opportunities

Before the pandemic, employers are competing to hire people! There were so many jobs! Despite that, prosperity was lacking among most Americans.

What are some ways we can redesign the economy?

We can reward workers for their contribution to society, improve the quality of jobs and spread the opportunities to more communities (not just a few), and reduce the barriers to great careers.

Conclusion

Overall, we need to redesign the economy. Without it, this nation will continue to suffer the same economic consequences that our actions have brought onto our people. Plus, if things continue to get worse, class warfare is a possibility. People are getting tired of not being reward enough for all the hard work and sacrifices they're making during the pandemic. With many essential items being sold out fast, workers that are working hard to meet the immense demand for their products aren't being rewarded as much as their bosses are.