Hi everyone, this is Dr. Nitin Chhoda! In this video i'm going to talk to you
about the TWO AMERICAS. And why I believe there's
going to be a permanent division of the American worker as a
result of this pandemic. Now when I say two Americas,
I don't mean red america and blue america, I don't mean
left and right, I don't mean conservative and liberal. I'm talking about the
difference between the rich and the poor. I believe that this
pandemic has exposed the inequalities in our system. I believe
that this pandemic is forcing us to confront realities
that we probably could have gone our entire lives
without even thinking about, without even discussing and what i'm about to tell
you is stuff that a lot of people probably
don't want you to know and they would prefer that you
stayed in the dark and you continued doing what you were supposed to do,
didn't even think about this, didn't even realize it. I'm going to talk to you
about the difference between the two Americas and what you should
know. So in this video i'm going to talk to you about
#1, the two Americas. #2, i'm going to talk to you about the effective
tax rate of labor versus automation. I think you're going to be very
surprised when you realize that the tax advantages of software and
automation are significantly higher than the tax
advantages of a labor market. It's quite surprising and
i'll actually show you a chart that sort of explains that to you.
#3, i'll talk to you about what
your next move should be? How you can plan for a post-pandemic world? So let's
jump right in. Now before I get into the content,
my name is Dr. Nitin Chhoda. If you don't know anything about me check out my
introductory video on the channel. I've had the fortune, the honor, the
privilege of living the American dream. I own software company so I
understand exactly what it takes to use software and
automation, the tax advantages and that's what's allowed me to be
successful and I want the same for you. In fact, I hope my viewers and
subscribers become even more successful than me.
Learn about me in the introductory video on our channel where you can learn more
about my story and how I achieved my American dream and
I want to help you do the same. By now you've probably figured out that
this channel is quite different from all the other channels out there.
I try and give you the facts so you can make your own decisions
and again I believe that if this illness had not happened
we wouldn't even be discussing this and my goal is to get
this information out, the information i'm about to share with you
and I don't want it to be hidden from you and I do believe that it's
information that can essentially give you that advantage
going forward. So let's jump right into it. I do believe there are two Americas
and I don't mean this in a conspiracy theory way
or in a way where you know one class is essentially being
dominated by the other class. I don't mean it in that way.
I don't believe in conspiracy theories.
Let's just be clear about that. I mean this in a factual way. This is the
fundamental imbalance of a capitalist economy and
i'm not the only one that believes in this, some of the
greatest investors in the world like Warren Buffett.
Warren Buffett has talked about the fundamental inequalities that exist
in our society. So what do I mean by the two americas
what i mean is that unemployed individuals in the service
sector we're talking low-income middle-income
americans individuals in travel entertainment leisure
hotels hospitality all of these all of these
industries have been significantly impacted retail is another industry
and the the the number of businesses that went
out of business specifically the small businesses in these sectors has been
absolutely horrific and i'm talking about cashiers
i'm talking about janitors uh construction workers
laborers i'm talking about secretaries who've had their job for 20 30 years
i'm also talking about school teachers who've
been let go by the by the state because you know the state had to cut funding so
for many for many individuals their prospects have been significantly
diminished and decades of hard work decades of
decades of progress has literally been wiped out in
a few months and unfortunately these have been
disproportionately women and minorities i'm talking african
americans i'm talking latino americans and these are precisely the groups that
were the most vulnerable that had the lowest paying jobs that had
middle income jobs that had little savings even before the
pandemic hit so it's almost like a one-two punch for
for these individuals and that's where
things stand right now and what's making this entire situation
worse and i'm not just talking about the lack of the stimulus check
and all the fiasco about the unemployment benefits and the lost wages
assistance program i've covered that extensively on my
channel and i'll continue to cover it but i think the long term the global
trend is the the the emergence of remote work and
automation and i think that the the fact that
individuals can work remotely uh requires a certain amount of skill
which by the way can easily be obtained but the remote work aspect of our
culture has been accelerated i think it's
i think we've we've what we would have achieved in maybe 10
15 20 years we've achieved in a few months because many companies are
going remote facebook said that they would be significantly remote very soon
in their remote already so what's happening is
all this remote work and automation is displacing low wage earners and
that's why there are two americas we're talking about professionals who
are largely back to work that's why i talked about a k-shaped recovery
in one of my previous videos so definitely check out the other video on
the k-shaped recovery their stock market portfolios are
hitting new highs their home values are increasing they're buying new homes
because they're getting homes at low interest rates and then there's a low
income americans who are dependent on a stimulus check dependent on unemployment
benefits who and some of us are ashamed of having
to depend on the government for unemployment benefits because
we've been independent all our lives and now all of a sudden we're dependent
on the government and on top of that we have the government not taking a
decisive action so the automation aspect and the software
aspect is leading to a decline in the labor
market it's leading to a stagnation of wages
and it's leading to a decline of actual real wages because
if your work can be automated then you become less valuable which then
begs the question how can you make yourself more valuable whether it's to
yourself and your own business or valuable to someone else who will
then you know pay you money for your skills
so that is uh what's happening is individuals
who are low income earners and middle income earners according to darren
akemoglu who's a professor of economics at the massachusetts institute of
technology i quote he said it's the bottom that's
really getting hammered so that's what's happening with the two
americas now the effective tax rate of labor versus automation
you'll see this chart on your screen right now and this
chart basically says that payroll and related taxes have
held steady over the past 40 years but the effective tax rate on automation
has fallen so basically what's happening is we are subsidizing the replacement of
humans with software with robots with
automation even though at this moment in time
robots aren't as productive as humans and uh humans i'm specifically
talking about low wage earners middle income earners are not likely to find
any relief in the short term in fact in a recent
essay david otter who's an economist at mit
and elizabeth reynolds who leads a task force on the work of
the on work of the future at mit they outlined the ways that they
believe technology driven trends unique to this pandemic
might continue to disrupt the lives of many americans specifically the most
vulnerable americans even when things return back to normal
now now that that should make you pause and
think even when things return back to normal
there's a probability that some of us might never get our jobs back there is a
probability that we might lose our jobs permanently
this will force us to re-engineer our skills and by the way
if you're watching and you're nervous and you're scared don't be
i i believe i believe in you i know i know you're intelligent you're watching
this video you're smart and you know what you need to do next
and i want you to believe in yourself your belief in yourself
is much more important than my belief in you i can be your cheerleader and i
always will be but i'll also give you i'll give you bottom line information i
won't sugarcoat the information and when it's time to be optimistic
i promise you i'll be optimistic i'll sing songs i'll rap and you've probably
seen you've probably seen my songs and i'm
going to drink you know two full bottles of wine when
i know that there's some there's some stimulus and there's some unemployment
for us to get through this short-term crisis
but my goal with this channel is the long-term
the long-term future of my viewers and subscribers because i have big goals
big aspirations for my viewers and subscribers beyond
stimulus checks and unemployment benefits so because a lot of individuals
have been working remotely the pandemic has basically resulted in
individuals relocating from traditional offices
to remote offices a lot of high income earners have been leaving
have been leaving cities have been leaving urban areas to move to rural
areas to move to suburbs to move to towns
where they can have offices in their homes where they can essentially have a
yard for their kids to play in where they you know don't have to be
jostling with someone else in the subway and you know they they basically have
more room and for them it's a higher quality of life now these
trends will have a significant impact on spending in urban areas
let's take new york city for example a lot of individuals are moving out of new
york city to buy homes and surrounding towns in new jersey
this and by the way these are individuals who actually and i know for
a fact there are many individuals who are paying cash
1.5 to 2.5 million dollars in cash for these
huge estates and huge mansions in and around connecticut and new jersey
so what's happening is the high income earners are taking their money their
spending capacity from the crowded urban areas which which by the way have
a lot of low income and middle-income americans
who depend on providing who depend on the services that they provide
to those you know wealthy americans and this is resulting in a loss of jobs
because the whole market the whole infrastructure the
whole landscape of economic spending of consumer behavior
is being altered so according to yelp 73 000 businesses
in the united states listed on there basically said that
they're closing permanently since march including bars restaurants gyms
salons and shops so on the other hand you have superstar companies i'm talking
about apple target i'm talking about all the other
companies that had significant earnings nike that had significant earnings
coming in the past few weeks actually as a direct
result of this crisis we're talking amazon
microsoft these companies have made more money than ever before
and we're talking about big companies and health care insurance and
manufacturing that are just chugging along so low income and
middle-income individuals will have to learn new skills
we'll have to go through new training and you don't have to spend money on
that training you can learn on free sources like youtube there's
plenty of free information available on the internet you'll have to
go through a re-engineering of your skills so that you become more valuable
to yourself if you want to start your own business be my guest in fact
i would prefer you start your own business if you know how to run a
business go through some training on how to start
your own business that's what i did in order to overcome the cycle of
poverty or go through learn some new skills so
and start looking for more jobs maybe do more than one job
start looking online start putting start knocking on doors because at the end of
the day success is about going through all the
no's so you can get the occasional yes i i remember when i knocked on 99 doors
i used to make hundreds of calls when i was building
my software business in the beginning i got 99 knows but the one yes that i got
after days and days of phone calls made up for all of it so
we have to be willing to persevere because i think that being patient
and being persistent is a very very valuable attribute on top of trying to
engineer new skills the fundamental problem with us with us
is and this is human nature this is not specific to you know low
income individuals or middle income or high income individuals
this is not this is not about that i think for us as human beings we are
fundamentally impatient being patient being persistent and being
able to persevere is very very important in this new world
that we live in we need to be more adaptable
we need to be able to essentially jump from one job to another if we have to
and essentially we need to understand that there are some jobs that can easily
be replaced by machines and you know when machines when software
when automation does indeed replace our own work then we need to be
prepared to to be able to plan ahead we need to be
able to switch jobs and shift gears if needed
in the past 10 years in particular we're talking about from 2010 to 2020
the economy is no longer creating steady jobs
for low-skilled low-wage workers as it did back in the industrial age
back in the late 80s and back in at the start of this century i think we
need to be able to adapt our skills and make our next move as quickly as
possible that's it everybody thank you so much
for watching my name is dr nitin shoda with ignition time if you did learn
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you