CNBC Post: The World Needs Manna

Well not in so many words but that is essentially what they are saying.

CNBC, ever the cryptocurrency critic, published an article the other day talking about blockchain technology and what it offers. It mentioned the fact that DAOs are going to be introduced on a much greater level creating a new management model.

From an indsutry perspective, this was a breakthrough article. CNBC did capture a great deal of what is taking place. It referred to the idea that blockchain facilitates trust. This means that entities which served that purpose are going to distrupted. It also will change the face of "work" going forward.

While the article is true and complimentary towards blockchain, it is also totally misleading.

Blockchain systems — the decentralized technology that underpins bitcoin and other cryptocurrencies by enabling the secure peer-to-peer transfer of value — offer the possibility for each of us to become free agents who collaborate on projects, get paid for what we contribute and have the quality of our work assessed by peers and clients.

Isn't this wonderful? This is all part of the gig economy concept. The article even cited a 2017 article from NASDAQ that projected 43% of the American workers would be gig by 2020.

https://www.nasdaq.com/article/the-gig-economy-2020-freelance-workforce-predicted-to-rise-to-43-cm803297

The gig economy got a lot of press the last few years. Now, I do acknowledge this is without blockchain technology which is revolutionary, but it is not going to alter the recent results in two years. In a decade, I can buy it but not in 20 months or so.

When you look at the gig economy, it was a major windfall for corporations. For individuals, it is mostly a screwing. While they like to tout the fact of having no boss, make your own hours, work from anywhere, and eliminate commutes, this paints a rosy picture on a rather grim reality.

What they leave out is the fact that a corporation, under this concept, ends up getting the same amount of work done while paying less compensation for said work. This is evident when we look at what falls to the employee.

In the US, there is a social security tax which is 15%. This amount is split between employer and employee. When one goes "gig", the full 15% is paid by the person, Hence, even making the same money means a 7.5% decrease.

Then there is medical. Some of you from Western Europe and Canada might not grasp this but in the US, there is no medical coverage granted. Thus, in most instances, people pay their own medical insurance. Many get it through word since, being on a group plan, means reduced costs. Nevertheless, many still pay $200 a month on group plans (the employer makes up the rest). Go gig and one is looking at $1k-$2K a month in medical for a family without pre-existing conditions. Add in one or two of those, and the monthly amount goes higher.

The individual also is responsible for providing his/her own computer, internet, cell phone, printer, and software programs. While most people have this anyway, this is another benefit to the corporations since they do not have to pay for that stuff. Also, they can reduce their office space, lower their workman's compensation, and not have unemployment insurance on the individual. We can also toss in the fact that the risk of sexual harassment or other lawsuits taking place are lowered with fewer employees.

Of course, there is no paycheck every two weeks. If you have continual work, this is no problem yet as anyone who works on contract will tell you, it is rather difficult when between gigs. Also, when one is laid off, he or she can file for unemployment. There is no option when one is a contractor. Of course, employers love this since they are responsible for paying a portion of the unemployment when claimed.

As you can see a major windfall for the corporations....and CNBC makes it sound like Nirvana for the individuals.

The article also goes into the idea of DAOs. Here is what it said about that....

The future of work gets really interesting when you think about decentralization and trust inside of organizations. Instead of having a CEO and a board that make all of the big, difficult decisions (which yields them excessive power and salary), these decisions will be made collectively by an organization's members. It is as if everyone has the right to vote on an entire set of managerial decisions on a daily basis.

Wow...did you see that? Now I doubt the board is going to get rid of themselves since they like the power but can you imagine the idea of these corporations getting rid of the CEO and the compensation tied there? Of course, since blockchain is a new management tool, in a DAO, most layers of management will disappear. Think of the cost savings.

CNBC was on top of it. They clued it.

https://www.cnbc.com/2018/04/24/soon-blockchain-will-let-armies-of-free-agents-run-companies.html

So what are they really saying?

Technological unemployment is a real thing and it is coming very soon. If your work is needed, you wil operate as part of the gig economy where you cost the corporation a fraction of the money. For those who are in management, well since the workers aren't there, neither are you. And finally, working up the hierarchy, most at the higher levels will be "blockchained" out.

So where does Manna come into this?

This article cites just one of the technologies that is growing in use that is going to destroy not only jobs, but entire industries. Over the next 5 years, the growth in this industry will come with a price. While it is good to think about making a living off blockchain, the truth is that few will, at least in the short run. This is especially true in the west.

There is a reason why people like Branson, Gates, Zuckerberg, and Musk all favor the idea of basic income. They realize it is not going to be a choice. I do not know why people want to dispute this. These men are creating and investing in technologies such as AI, 3D printing, bio-food, and autonomous vehicles. When the men who are investing in the technologies that are going to eliminate jobs basically say "we are going to eliminate jobs", it is best to believe them.

The key is not to look at the world in 2018 but, rather, look at where it most likely will be in 2025 or 2030. With the pace of automation, work as we know it will cease to exist. That means something else will need to arise. Ultimately, I believe it will be a better system, yet there will be some carnage before we get to that point. We risk a generation of people being left out because they lack the skills and understanding to change.

This is where Manna comes in. Not only are we still dealing with generational poverty in 3rd world nations, we face a crisis in the developed counties due to the loss of jobs. When the World Bank, Morgan Stanley, WEC, and IMF all issue reports stating that tens of millions to, possible, hundreds of millions, jobs will be lost over the next 10-20 years, this is eye-opening. The impact on the western nations, if the estimates are even 50% true, will be catastrophic.

The unemployment rate during the Great Recession in the US was 10% (if you buy that stat as being remotely real). Can you imagine what it will be like if this number reaches 20%-25% over the next 3-5 years? What are people going to do for money? By that time, they won't even be able to get a base income by working at a local supermarket since they are working on automating jobs away.

Manna and projects like it are necessary because there are going to be huge numbers of people who are unable to transition. The advantange that it provides is that it is free from politics since it is not government run. Being dependent upon the government is unhealthy and slavery. Blockchain, even though it is disruptive, is freedom. Ultimately, it will set the world free. Before it does that, it will obliterate the existing structure.

We are seeing the media report, albeit hidden, that corporations simply do not need us. There was a time when there existed a link between capital and labor. No more. Corporations can increase capital without increasing labor. In fact, the problem is compounded since they actually increase capital more by reducing labor.

This is the reality of the world we live in and something traditional economics, finance, or political leanings did not have to deal with.

Over the next 5 years, this will become abundantly clear.

Fortunately, for those of us on here now, we will be in fine shape since we are ahead of the curve. Steemians and other already involved in blockchain/cryptocurrency are going to come out of this very well off.

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