Millions Giving Up On Work | Nicholas Eberstadt
While the official unemployment rate remains at a low 3.9%, there is an epidemic in the US and other Western countries of men -- and now increasingly women -- without work.
These are currently 10 million of otherwise able-bodied working age US adults who have given up on finding work, often driven to do so out of frustration and despair.
It's gotten to the point where 1 in 6 prime working age men has no paid work at all.
What is causing this?
And what can be done about it?
Because when an increasing percentage of our prime working age population stops contributing to economic productivity, not only do they suffer the consequences of diminished prosperity -- we all do.
For a deep dive into this pressing crisis, we're fortunate to speak today with Nicholas Eberstadt, the Henry Wendt Chair in Political Economy at the American Enterprise Institute and author of the book Men Without Work: America's Invisible Crisis.
This is an important discussion, folks, about an issue society can’t afford to ignore.
Here are my top takeaways from the interview:
Nicholas agrees with Prof Scott Galloway's insights on the economic struggles of the younger generations compared to older ones. He sees a global epidemic of loneliness and misery, particularly among Gen Z, contributing to declining birth rates and family formation. The U.S. has seen a significant slowdown in per capita economic growth over the past 50 years, leading to diminished prospects for younger generations.
Nicholas stresses the dangers of declining public trust in the U.S. government and major institutions. High levels of trust are essential for a healthy society and functioning democracy. Current distrust and low optimism are undermining social cohesion and problem-solving.
The U.S. has become less religious, optimistic, and proud over the past generation, contributing to a lack of social “glue” and purpose, leading to a rise in societal unhappiness.
Significant labor market shifts have led to wealth accumulation disparities. Many in the bottom half of the U.S. population have not seen real gains in wealth while those at the top end are receiving a disproportionate amount of the spoils. Workforce participation has declined among prime-age men and women, and single-parent households face significant financial challenges.
Men are retreating from the workforce due to complex factors, including
lack of motivation, extensive screen time, and daily use of pain medication. This behavior indicates disengagement from civil society and significant physical and/or emotional pain.
So how are they supporting themselves? Many non-working men rely on a combination of government disability benefits, family, and friends for support. This safety net prevents complete financial destitution and enables disengagement from the workforce.
The pandemic response by the government led to a noticeable decline in workforce participation among older Americans. The reasons for this shift are unclear, but likely linked to increased wealth (surge in financial asset and home prices) among the more affluent and educated in this age group.
Hope lies in improving education, particularly by ensuring students graduate with marketable practical skills. Reforming the disability system and addressing the large population of ex-cons are crucial. Civil society must play a role in acknowledging and addressing these issues within communities. Practical reforms and community engagement are essential for laying a pathway for the disaffected to find meaningful work.
Nicholas advises following your curiosity and taking risks rather than choosing a safe career path. Although it may not be the smartest move for everyone, he has no regrets and believes it was the right choice for him.
For the full interview with Nicholas Eberstadt, watch the video below:
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