The Cost Of Unemployment

source I am more concerned about the government coffers being emptied far quicker than normal and wanting to fill them up by using the people still working.

I think we need to look through a crystal ball to see hat is happening to the economies around the world and what is going to happen next. The one scary part is the amount of businesses closing down or cutting back getting rid of staff. This is a matter of survival for companies right now and letting staff go has to happen to reduce their overheads.

With unemployment rising to record levels this has a cost not only on society but to the country in general. I must admit I have never looked at it this way as I am self employed but it is rather obvious.

Firstly the government has to pay unemployment benefits to all the unemployed and with increased numbers that is going to be a huge bill to cover. What adds even more pressure is the second point and that the tax revenues the government relies on is being eroded away by so many not paying tax anymore due to their employment status.

Less income for the tax coffers and a bigger spend forecast over the coming months or years most likely will mean more money being required via borrowing or what most favor these days is printing. Printing new Dollar bills or whatever currency the country requires cannot continue at this rate an neither can the borrowing as the figures owed can never be repaid. Maybe they will print money to pay those who knows but it is not good for the world economy in general.

I know in South Africa we are at junk status regarding our ratings and borrowing more money against what we owe is not something many will be happy with. We are close to 50% unemployment and will be mid year according to the stats.

What concerns me is the government will try and find a way of increasing their tax revenue leaving the ones left in employment footing the bill for those out of work. Will we se a further rise in VAT (value added tax) as I expect we will which just makes everything that much more expensive. Hearing of an extra 1 cent added doesn't sound like much but it is 1% across the board. The shopping we do daily is that much more expensive and every bill we pay has automatically just gone up.

From all accounts looking at what is going on around us crypto is looking more and more like a safe haven for our wealth as everything else is just losing value. Our buying power with what we have is being eroded away bit by bit by these idiots that are in power who are looking more clueless each day. Leadership is meant to step up in times of crisis and I would not call this stepping up but more like giving in making things worse.

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