This is the conclusion of Noah Yuval Harari's best selling book Sapiens. He wrote it in 2011 and barely 13 years later, what I am seeing and have put into a simple diagram as above is this.
There are a small class of elites who manage the large corporations and their rank is growing. The Baidus, BYD, Tiktok, MetaAI, ChatGPT owners, the Musks, the Zuckerburgs, the Gates you get the point. The new rich who easily rake in billions in a span of maybe 5 to 10 years. They will then invest their profits into the next asset classes such as high end properties and AI.
In the middle, the middle class are thinning out. The rise of AI and the AI agents have displaced many copywriters, editors, clerical and admin assistants, finance assistants, front desk and front line workers. The gig economy is being replaced by reliable drones, robots, non complaining, non politicking non breakdown and non MC applying bots. No need for human faces and front desk people.
The millions of Grab, Uber, Lyft and Didi drivers will be left without an income in the next 10 years. Assets like property which have been spiralling since the COVID days are way out of the spending league of the gig economy workers.
The big problem is then, what do these people who have been disenfranchised, dispossessed and edged out from whatever there was available in terms of work, work as ? To make things worse, if they have committed to buying a property be it a Government subsidised flat or private property and have a huge outstanding mortgage without a long term job or outlook, this will be a great impact to
a) resale property market prices
b) the property market's index or benchmark price range which will fall, and in theory everyone will be poorer.
There will be untold millions and possibly billions of people all over the world who will be affected in this manner in the coming decade.
What is the Government's solution to this projected problem ?
Watch this blog for updates.
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