I have some bad news for you you probably won't ever be a tech worker at a Fang company a bulge bracket Finance Pro or a high-powered corporate executive Society needs people to do real jobs that keep us housed fed and safe and it needs them a lot more than it needs another mckeny consultant this is a problem because no matter how you put it a job where you sit in an airconditioned office making six figures a year and your first year out of college is way more desirable than doing road work in Arizona for 20
bucks an hour the problem is that every everybody is trying really hard to pretend that this isn't true and the system that has sprung up to maintain this dream has caused more problems than you realize how many jobs on these two websites it's been over a thousand combined how much money would you say you save or you plan on saving out of that salary it's going to be around 2K per month mostly yeah every day it just feels like Groundhog Day or waking up doing the same thing I feel confused sometimes because it's just like
I had this idea of what my life would be like at this age and that's just not exactly how it is Peter turchin is a complexity scientist who mathematically models statistical dynamics of historical societies he coined the theory of elite overproduction he argues in his books and papers that societies make workers just like they make anything a car goes through a factory and a college graduate goes through a few Decades of schooling at the end you get something that you can drive drive around in and something that can make pivot tables in Excel the only
difference is that a lump of Steel doesn't care if it's turned into the engine block of a Bentley or a Buick but people given the option will naturally opt for more prestigious careers if they are available tchin work effectively argues that roles in all societies form something of a hierarchy with fewer actual people required to do the jobs further up the pyramid we need a lot more Tradesmen nurses teachers and laborers than we need so-called Elite rules like corporate executives by their nature these rules only exist to watch over the work of dozens of other
people but for a variety of reasons too many people have been directed into getting qualified for these rules up here and discouraged from doing these rules down here this is how you end up in a system where everybody is qualified to deliver a stakeholder engagement deck to synergistically Blitz scale a busino business platform for ingesting marketing survey data from the cloud but you can't find anybody to fix your plumbing we have simply trained too many people to fill too many Elite roles and not enough people fill the everyday roles of society this has cost us
a lot in more ways than you might realize and the first is just the cost I know that you are all well aware of the cost of attending college but there is more to it than just the student debt that you're going to take on to Le your first job in the cubicle Farm if everyone gets a college degree which qualifies them for a prestigious job then those qualifications aren't special anymore according to data from the US Census Bureau and compiled by statista the number of Americans with a college degree has increased from 7.7% of
the population in 1960 to 37.7% today an almost six-fold increase the remaining 62.3% of the population are not all going to be bluecollar workers either according to the Bureau of Labor Statistics only 62.6% of Americans work at all so more than half of the workforce holds a degree a degree is not enough to stand out anymore it's barely enough to land a job at all so people are getting more degrees to prove they are worthy of an role the price of a college degree has gone up and its value has gone down but people are
still willing to take on life-altering amounts of student debt to get them so they can access a job that is prestigious the ironic thing is that many bluecar trade jobs actually pay much better than even midlevel corporate roles because there is a shortage of these non- Elite workers so they have much more negotiating power in the real Market than a history PhD applying for a research roll sorry Sam from how history Works despite this most people still agree that someone sitting behind a desk is more Elite than someone working with their hands so given the
choice they would rather work in an office you knew all of this already colleges have been pumping out graduates for decades now but what is interesting is what happens to the people that are left over eventually there are only so many roles that can be done in a suit and tie in a nice office which means some of these Elite qualified individuals will be left behind to work jobs that they are completely overqualified for underemployment is already a major issue in America highly paper qualified people are working casual jobs with bad pay and fewer benefits
because they don't want to get a bluecollar job because that would be admitting that their expensive degree was useless tchin in his book end times has likened the glut of people who are too qualified for the job to the accumulation of Deadwood in a forest it doesn't do anything by itself but if anything goes wrong it will cause a cataclysmic fire I will leave a link to his book in the description below if you like depressing videos like this it's definitely worth the read tchin has likened our current period of elite production with the late
Roman Empire the French Wars of religion and various Chinese dynasties but America and the rest of the western world has had one sneaky advantage over these other low energy Empires we have taken all of these non- Elite jobs that we didn't want to do and outsourced them overseas for a while it let more of us work in jobs that we could brag about on LinkedIn but that strategy may have come with some serious side effects so it's time to learn how money Works to find out what happens now that we have too many people that
are literally too good for their job this week's video is sponsored by Manta sleep Manta sleep is on a mission to enable Better Lives through better sleep in naps and makes the world's best sleep masks and function sleep accessories I've gotten both the Manta sleep mask Pro and the Manta sleep mask sound and I didn't put a lot of stock in sleep masks until I tried these the sleep mask Pro offers c-shaped ey cups for a 100% blackout deeper sleep and ventilation for breathability the sleep mask sound has everything that the pro pro has but
with headphones that allow you to listen to calming music to help you sleep and my favorite Manta sleep is leading a pro nap movement rejecting the corporate BS of waiting around pretending you're working when you could be re-energizing for when you actually need to do something important by sleeping start improving your sleep today with Manta and use my link in the description and code how money works for 10% off your order start prioritizing one of the most important things in your life with Manta sleep one of the less serious impacts of a system that has
too many people qualified for too few Elite jobs is title inflation if you can't find a senior role for everybody with an MBA from the University of Phoenix then you have to give them a fancy sounding title salesmen are now account Executives receptionists are now directors of First Impressions and marketers are brand presidents job title inflation like this sounds extremely dumb Until you realize that it works a UK study found that 70% of workers would give up a pay rate to get a job with a better sounding title with some forgoing as much as $10,000
to take a role that sounds more senior this study is very old now but one look at LinkedIn will show you that it hasn't gotten much better now while it's fun to laugh at goobers on LinkedIn the problems of elite overproduction as outlined by tchin manifest in other areas as well as more people become qualified and expect to fill glamorous corporate roles it creates a political pressure to make sure that people get those roles the anthropologist Steven Graber spoke about his role of the Box tickers in his Infamous book jobs these were rules that only
existed to satisfy some arbitrary requirements overseen by other box tickers to give the appearance that something useful was being done the best way to create these jobs is through laws and programs that mandate them I made a video last year about the homelessness crisis in America and why despite spending billions of dollars on it we are only making it worse one of the problems is that there were thousands of jobs being created in various local state and federal government departments alongside nonprofits that paid workers very well with so many Elite jobs on offer there is
no real incentive to fix the problem because for the individuals running the programs they would have to find a new job and for the politicians approving the budget they would have to explain why thousands of professional jobs went missing under their Administration now I just wanted to shamelessly mention my old video but it's by no means limited to this one problem millions of people across America are employed in some kind of compliance role with a private company some of these roles are incredibly important some less so but if compliance standards are dropped then the politician
who passed that law would have a lot of potential voters angry that they made their job irrelevant now so far it all sounds like the blame of elite overproduction ultimately falls on the people who thought they were too good for a real job and felt entitled to an elite position just because they got a communications degree that is not entirely unfair and there does need to be a level of personal accountability for your own personal DEC decisions but we've made it incredibly easy to follow the path of least resistance into the pile of college graduates
striving for an elite job has also become a necessity in many parts of the country if you want to live a comfortable version of the American dream in most cities across the country these days you need to have an extremely good job more than a third of Americans earning $250,000 per year are still living paycheck to paycheck because the places where they can access these Elite jobs are ludicrously expensive the study unsurprisingly found that bu stress was Far higher amongst younger earners because the only consistent way for them to earn that much money was to
get an elite job in an elite City Blue Collar work can make a lot more than entry-level corporate roles but unless you can successfully start your own business the ceiling on how much you can earn in these rules is much lower in areas away from expensive cities that's okay but if you grew up in a major city and you want to keep living there then you kind of have to play the game of fighting for an elite job by working your way up the corporate ladder or fighting through ultra competitive internships if you are successful
congratulations you can buy a Tesla Model 3 and rent a one-bedroom apartment in Seattle but if you are not then you can contribute to the biggest problem that tchin discusses in his writing people who have invested a significant amount of money not to mention years of their life into pursuing a role that they were told they were entitled to breeds a lot of discontent when they end up underemployed these people who fairly rightfully feel scammed out of what they were told was a guarantee are now a significant vot voting block that's created political pressure to
not only maintain as many of these nonsense jobs as possible but also to pursue student debt relief Advanced education subsidies and retraining initiatives it might fix a lot of problems but there is no getting around the fact that it's not exactly fair to people who have already paid off their debt or never took them on in the first place because they didn't pursue an elite career path now this is not to say that these are good or bad ideas it's only to say that they wouldn't even be considered if there weren't so many people that
had become trapped as an overproduced Elite enough people to make this politically viable unfortunately as the great DJ khed would say we have played ourselves to get here in the first place beyond the expense and tensions caused by having so many people qualified to do rules that are inherently rare we have forgotten how to do the foundational stuff America's housing crisis is in part being accelerated by the cost to build new homes because we don't have enough Tradesmen to keep up with the demand for new housing the fact that housing is so expensive only makes
this problem worse because people see that the only way they will ever be able to afford A Home of Their Own is to compete for an elite role with every other hopeful graduate we have also become more reliant on skilled migration to fill the gaps in our Workforce which also drive more demand for housing and more desire to be elite just to stay AF float now Turin makes the argument that this is the single unifying issue that has led to the collapse of all great civilizations that might be a bit of hyperbole to move some
books but it does make it a little bit worrying when you see the symptoms that he first warned about several decades ago I will be writing a follow-up article to this video about the clown show that is modern internships for high-end Finance firms it might be the most obvious example of terin's warnings in action and that will be up this week on my free email newsletter link below living costs are at the center of this problem especially housing but go and watch this video to find out if we can even make housing affordable without destroying
the economy in the process to keep on learning how money works
