High unemployment, bad! Low unemployment, also bad!

[Metaphorical]

7. Low Unemployment Is Poised To Become the New Normal

We are transitioning to an era when the workforce will be shrinking, lasting well into the 2050s and potentially beyond. It was there before the Pandemic, but Covid-19 also served as a clear off-ramp for many people that likely would have played out more slowly through the 2020s otherwise. This upcoming period is absolutely terrifying hyper-capitalists, because labor will become more valuable over time, while the influence of capital is diminishing. You need far less money to become competitive in the marketplace, which means that there is less value that VCs, angels, and investment banks bring to the table. This translates into what's, to them, a nightmare scenario: wealthy investors will see diminishing returns on investment while access to innovation (which is driven largely by labor) diminishes as well. This is a long-term megatrend that will likely play out over decades or even centuries, and you'll see shorter-term economic cycles where this strengthens or weakens, but the trendlines are definitely in labor's favor over the long haul.

It's also worth noting that the Republicans by and large are oriented around the economy as it looked in 1970 - petroleum-centric, automation not yet having transformed the economy, management (and sales) dominant, with unemployment "permanently" in the 6-10% area, where the barriers to entry were high. The economics are completely different, and it means that the Republican-oriented philosophies that rewarded the investor are becoming increasingly ineffective.This realization is not sitting well with the upper-income brackets.