Billionaire Chamath Palihapitiya says that inflation isn’t likely to dissipate anytime soon as a new world order emerges.
In a new episode of the All-In Podcast, the business magnate says that an increasingly divided world economy could force the US to near-shore jobs traditionally fulfilled by China, keeping prices up.
According to Palihapitiya, a flight of jobs close to the US is “naturally inefficient,” and will drive up costs of goods.
“You have to remember that we are in this new world order, which is the ex-China world order, and in that there is no more unitary economy that can do things cheaper, faster and better globally around the world.
So we’re going to near-shore or onshore all kinds of things that used to be done by the Chinese. They’ll sit in Mexico or they’ll sit in Central America, maybe in some cases they’ll sit in Canada, and all of that will feed into the United States.
The problem with all of that is that that will keep costs higher because it will be naturally more inefficient. It will naturally take more money, and that will naturally cause the prices of those things to be higher, which means that terminal inflation is just roughly higher.”
However, Palihapitiya says that as a result of getting jobs close to the US border, laborers in the country will gain more power after years of political sway being in favor of business owners.
“As a result, I think that more power if you will goes to labor, so in this constant tension that we have in an economy between labor and capital, the people that own the factories or the businesses and the people that run them and work inside of them, we’ve been in this position where the pendulum has swung so far towards capital, the owners, the shareholders that all this financial engineering has tremendous upside.”
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
