No Minister

The Bitcoin House

Read an interesting article today on the news out of the USA that some 30% of men are not employed in that nation.

What was unusual about the article was that it decided to ignore the usual angle of exploring why this is the case, instead focusing on how all these millions of American men actually live without a job.

One section looked at investments and aside from a doubling in retail stock market investment accounts there was also this:

Now crypto. You can laugh all you want, but the simple fact is that the price of bitcoin is up from $4,861 on March 12, 2000 to $47,763 today, or basically up 10X, (and remember it even hit $64,888.99 this spring).

Hmmmm. That’s an annual increase of 11.49% per year over twenty one years. Not bad.

The other day I checked out what our house is worth and was shocked and appalled to find out how much it’s increased in value in just the last year.

I’ve known for some years now how crazy things have been with NZ housing. I’ve been saying for a decade that this could not go on. Yet it has and although I thought I knew how crazy it has become I was still under-estimating the insanity.

Moreover when I ran the numbers over time I saw that our “investment” in house has increased by 11% per year on average for twenty years.

Written by Tom Hunter

September 19, 2021 at 5:23 pm

6 Responses

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  1. Do you really think that 30% of American men of working age are unemployed? I know you don’t read, watch or listen to MSM, but such a figure would be checked and verified. Similarly official statistics don’t support such a figure.
    Now perhaps your post was really only about Bitcoin.

    Wayne

    September 19, 2021 at 7:37 pm

    • The link was broken but is now fixed. It shows the chart of the U.S. labor force participation rate for men over time, courtesy of the St. Louis Federal Reserve, and that shows the rate falling below 70% in 2020.

      The conversation proceeds from there to explore seven reasons as to why 30% of men may be able to live in that situation.

      Tom Hunter

      September 19, 2021 at 8:03 pm

  2. Here’s the original source using data from the U.S. Bureau of Labor Statistics.

    In fact I’ll even give you the graph.

    Tom Hunter

    September 19, 2021 at 8:07 pm

    • The graph is not about unemployment, it is about labour force participation, which is a different concept. Most of the decline since 1950 will be due to the huge increase in tertiary education. A very large percentage of those under 25 are in education rather than the workforce. Those aged between 18 and 25 are about one sixth of the population aged 18 to 65. It is the reason why our unemployment statistics exclude those in full time education. The other possible reason is the far larger percentage who are retired. People live longer. Though many labour force statistics have an age cutoff.

      Wayne

      September 19, 2021 at 9:30 pm

  3. I didn’t say it was unemployment. You said that.

    Due to the vagaries of US definitions of unemployment I’m well aware of the difference between that and the Labour participation rate. Nevertheless the latter is a measure of employment in the US labour force. Thus you can have 30% of men not employed and yet have an unemployment rate of only perhaps 5%.

    I had assumed you understood this.

    Now, having cleared that up, did you actually read the article at the link? It’s quite interesting in exploring how it might be possible for such a large proportion of men to not participate in the US workforce and nevertheless survive.

    Tom Hunter

    September 19, 2021 at 9:44 pm

  4. Oh – and of course you might cast an amused eye on my comparison between the twenty year rise in NZ housing values and the Bitcoin market, the latter being regarded as something stupid and out of control.

    Which was the real point of the post.

    Tom Hunter

    September 19, 2021 at 9:51 pm


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