Economics: Labor Tier Surplus amid Supply Hyperinflation

Economics: Labor Tier Surplus amid Supply Hyperinflation

Economics: Labor Tier Surplus amid Supply Hyperinflation

Ukraine is the 8th largest producer of wheat in the world, but the disruption to their output was, in part, responsible for triggering a global food crisis.

There are countries ahead of Ukraine who could have stepped in, assuming there were alarming forecasts for short supply as soon as the war began.

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There is a shortage of grains, but it is also a problem of shortage of labor, at least in other places. If there was tier hiring such that for lower than the minimum wage, people hired on a low tier can work in grain fields for just 1 hour, at every 3-hour-interval, for grain production, availability and optimism would have been different.

The energy crisis in the world is principally of oil production and refining, not tax, not distribution. There are several oil producing countries, as well as several locations for refineries. If hiring was tiered, such that there are experts in the first, intermediate in the second, and inexperienced in the third, those in the third tier for no more than 2 hours per stretch can work in production or refining, it would supplement possibilities against the energy crisis.

Also, for renewable and sustainable energy, wind, solar and others, if there were people hired on tier, to produce the tech, in different locations, it may become an opportunity to grow supply amid the gas crisis.

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Semiconductor chips, their raw material, several commodities and consumer goods, with higher demand than supply, have other places where they could also come from, if pre-existing supply seems constrained. But the availability of labor to all would be different to productivity and output across the world.

Regardless of how difficult the inflation and supply problems are — one approach is to ensure that there is a labor surplus, so that people are available to work continuously, for capped hours and lower pay, to counterbalance interruptions.

Tier labor economics is the postulation that there can be people hired in the same position for the same shifts on different tiers, so that the last tier can be those without skills in that role, but can work for a short duration — earning lower than the minimum wage. The model is to grow productivity, lower labor costs across the board and allow for efficiency, in general.

Working in the lower tier in a nursing home for one hour, or at most two, for a low pay, is different from working on a minimum wage, considered low already for a full 8-hour-shift.

There are many parts of jobs — in the service industry — that don’t demand high skills all the time. There are also roles that cause burnout because of their toll on health. Capping working hours to one or two, even in some cases a half-hour, with low pay could become a meaningful endeavor towards resourcefulness while keeping risks low.

Some may say this would deepen inequality or toughen possibility for economic mobility, or benefit the top percentile, or unions would disagree, maybe, maybe not, but half-one-two hours is not a substantial draw, neither is dignity or fairness extricated from that cap.

Labor supply economics, with tier hiring could underscore the future of work amid hyperinflation.

Maybe the original supply shortage is labor, but other factors rust the bleachers.

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Stephen David

Research in Theoretical Neuroscience
 

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