Why Do We Have to Work So Hard?

If technology makes life more efficient

why could one person support a family in the 1950s

when two people have to work full time today?

The answer to this question explains why a payments tax works so well, and why it could improve the standard of living for such a wide range of American citizens.

First, it is true that our standard of living has improved with technology. A car in the 1950s, for example, is very different than a car today. We are used to power windows, power brakes, power steering, and GPS. Those luxuries were not available in the 1950s. Likewise, studies have shown that the average portion at a restaurant today is three-times greater than it was at a restaurant in the 1950s.

As our productive efficiency improves, it takes less man hours to produce a given product. Therefore, the workforce has shifted. Whereas there is a smaller portion of the workforce involved in manufacturing the core products from the 1950s, new workers are making new products and services, like computers and applications.

If that was all there was to it, we would be working the same amount today as they did in the 1950s and we would have even more for our efforts. But, a couple starting out in life today usually cannot afford a house even though they both work, whereas a couple starting out in life in the 1950s could buy a starter house with only one of their salaries. Why is this the case?

The reason we must work harder today

is because a shrinking portion of the workforce is

employed at jobs that produce goods and services.

Wages grew in proportion to production until the 1970s. Since then wages have remained flat when corrected for inflation. That's because automation marginalized the worker. The highest paying jobs moved into the financial sectors, and the growth of jobs that earn big salaries but do not produce goods and services began. This gave birth to the monetary economy, which dwarfs the material economy. The end result is that a great many people who work but do not produce anything compete with the rest of the workforce for the goods and services that just a few make.

By predominately taxing the monetary economy instead of the material economy, the Financial Freedom Act helps correct this imbalance, making life more fair for the vast majority of people.

The Financial Freedom Act is brought to you by the Foundation for a Better Economy


© 2020 The Foundation for a Better Economy, Boulder, CO

Some of the financial technologies disclosed on this website are patent pending.