The UAW strike is an interesting topic.
UAW workers making 33 an hour. Ridiculous! Top wages before benifits should be about 50 an hour with retirement being possible by age 55 with 60 or 62 being the common check out age.
The work simply demands a body that old people do not have. The only way to extend working age is to add more robots so that assembly line worker are mostly standing there and monitoring robots.
I just finished watching videos on Tesla and the one by Peter Ziahan on China. A couple of things stood out.
One Tesla employee compensation is listed sans stock options.
Two and this is more important, China wage cost have gone up 14x in the last 20 years and the demographic problem in China is actually much worse than the data indicates due to inadequate data reporting in China.
Now before you say it doesn’t matter. China has 400 percent more labor than the USA. A 5 percent drop in labor availability in China correlates to a 20 percent labor demand increase in the USA. (Of course China supplies the whole world not just the USA) With a labor situation in the USA of over employment (Anything under 5 percent unemployment is over employment ) There is no room to make up any Chinese labor short fall.
This means, all labor has a significant bargaining position and capital does not. My expectation is that some very interesting things are happening.
Labor costs will rise and capital value will fall to a more historic valuation. (I do not know that valuation and it would be a valuable study)
The rise of labor cost will change the trajectory of the velocity of money. This change will increase inflationary pressures and those pressure will increase interest rates in the USA. I cannot model the follow on effects, drinking second glass of Makers Mark)
In the end, industry will become much more labor efficient.
I am investing in AI. i.E. Tesla, Nvidia, and advanced chip production.
I am attempting to delay my retirement and increase my time earning wages.
Increases belief in the US Dollar.
Looking for investments in the rust belt, particularly Wisconsin as it has water, transport and a history of manufacturing,