AI Is CRUSHING Young Workers! Here’s How To ADAPT To The New Age

0:00Hello, everyone. We've got a lot to discuss today. Artificial intelligence is absolutely smoking young people in the job market, Cracker Barrel finally bent the knee to public pressure, and I'm going to explain to you why Bitcoin's price has been going down in recent days. We're live today from the desk of Anthony Pompliano.

0:24Before we get into today's episode, I need your help. We have 19 ,856 different subscribers on YouTube. My goal is to get to 1 million, but to get to 1 million, we need to hit 20 ,000 first. That's where you come in. Please hit the subscribe button and let's get pushing to a million subscribers on YouTube. Let's get into today's show. All right. A recent study spells disaster for many young people entering the workforce right now. Simply, these young people are getting smoked in the job market due to artificial intelligence. The new paper tried to understand where AI is driving more jobs in the economy and where AI is destroying jobs.

0:58And as expected, the conclusions are a doozy. The paper is titled Canaries in the Coal Mine, Six Facts About the Recent Employment Effects of Artificial Intelligence. Great name to a paper. And it analyzed data from the largest payroll software provider in the United States. Hard data, that's what we like around here. According to Nick Carter, the authors of the paper looked at job data since 2022, and it divided jobs into the most and least exposed to AI. They use a sliding scale. One is least exposed, five is most exposed. And Nick says that the example that they used of high-exposure jobs include software developers, customer service and support, clerical roles, writing and media, and business analysts.

1:36So what's happening to young people in those job categories? Do they have more or less opportunity thanks to artificial intelligence? Well, the economist Mike Bird highlights that one of the main conclusions from this study says, since the widespread adoption of generative AI, early career workers, which is defined as people between the ages of 22 and 25, those early career workers in the most AI-exposed occupations, they have experienced a 13 % relative decline in employment. That ain't good. That's a trend we've been talking about over the last few weeks, but now we have concrete data to quantify just how severe the situation is.

2:09A 13 % relative decline in employment is a very big, bad deal. Some may even call it catastrophic for a cohort of workers who are trying to figure out how to get their professional footing. So we dig deeper into this paper. Not only did the paper find that substantial declines in employment for early career workers in occupations most exposed to AI, but they also show that at the same time, economy-wide employment continues to grow. That to me is the killer conclusion here. Overall, the economy is growing jobs, but young people in AI-related jobs are falling significantly behind. You think that's gonna be a problem in the future?

2:43Obviously, duh. And what happens when AI continues to get better and better over time? Remember, right now is the worst the technology will ever be. It only gets better from here. So today it is entry-level workers that are getting crushed by AI. Tomorrow, it'll be more senior workers in a few years. But before young people go cry in a corner, there's a positive perspective on this news as well. Nick calls it a K-shaped AI hypothesis. I call it compete, don't complain. The idea is that AI makes it easier than ever to make a living, especially on the internet. The barriers to starting a company, building a product, or selling a service, they've never been lower.

3:18Rather than praying that someone else is going to hire you, young people have the opportunity to accelerate their achievement of financial freedom by simply creating jobs for themselves. Do you need curiosity, intelligence, and creativity to do that? Absolutely. Do you need to have agency and be a self-starter? You got it. But if a young person is hungry for success, these new tools open a world of possibility that never existed before. And the data is clear. Young people are having a harder time finding work thanks to AI. But these same people can now make significantly more money and do it much faster and easier than their older peers.

3:52AI is a tool. You can use it for good or bad. You can use it to create jobs or you can use it to destroy them. The choice is yours. Remember, winners write history. So my suggestion is for everyone to spend a few hours to become proficient with the latest AI tools. Your career quite literally may depend on it. All right, ladies and gentlemen, one of the themes of this show has been retail keeps winning. Retail's got a voice, they've got capital and they're not afraid of using either one of them. And so it's no shocker that when Cracker Barrel recently came out with a brand new logo, trying to make their restaurants modern and sleek, and they simply wanted to change, would have been working for years, retail investors and retail customers had their voice heard.

4:34They were yelling and screaming, saying, Cracker Barrel, what are you doing? You guys are insane here. Cracker Barrel stock went down and all of a sudden it was up to Cracker Barrel to try to figure out what were they gonna do? Stay the course? Were they gonna bend the knee to retail? Well, we got our answer last night. Cracker Barrel came out with a statement that says, we thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen and we have. Our new logo is going away and our old timer will remain. Hey, that's a win for retail. At Cracker Barrel, it's always been and always will be about serving up delicious food, warm welcomes, and the kind of country hospitality that feels like family.

5:07As a proud American institution, hey go Cracker Barrel, our 70 ,000 hardworking employees look forward to welcoming you to our table soon. Makes sense to me, but let's check in with the goat. Lulu, she is the modern communications wizard, sits behind the curtain, and she's got all the right ideas. So she says that this is the right move. Cracker Barrel had made the same mistake as Jaguar. They targeted a non-existing customer. They disdained their loyalists, too old, too white, too uncool. And they tried to upgrade to a new customer who's cool and trendy, but don't actually exist. Cracker Barrel targeted the kind of person who wants a more sleek, modern dining experience, and for some reason will still go to Cracker Barrel.

5:44I don't know if that's gonna happen. The execs of these companies are not unintelligent or inexperienced. They simply seem to be boomers catching up to the zeitgeist of 2022, and they use it as a basis of a bold campaign that can land them a panel at Canes Lions. But the best brands are those that embrace their core audience. They foster diehard customers. Costco, Chick-fil-A, Harley-Davidson, and more. You don't get to pick a fantasy customer you'd rather serve. If you don't respect the customers, just change jobs, she says. Brands are built on loyalty. And if you turn your back on loyal customers, they will turn their backs on you.

6:18So what's the response from Cracker Barrel bending the knee to retail and public pressure? Stock's up 10 % this morning. The audience and the investor base all respect the fact that Cracker Barrel has common sense coming back, their share price is coming back. And my guess is customers will be right back in there, eating great food, having a good time and realizing that Cracker Barrel now, they found some cojones. They're willing to say that they're an American institution, somebody who's simply going to keep all of the historical things that have worked, they're going to continue to serve their customers.

6:48I think there's a lot of businesses across public markets that realize, don't mess with retail. They got voice, they got capital, and right now, they're on a winning streak. People keep asking me, why is Bitcoin going down? So I recently sat down with John Pompliano and I explained exactly what my thoughts were. Here's what I had to say. The first is, any time that you look at the historical seasonality of Bitcoin, the end of August into September, not a good time for Bitcoin. September is actually the only month of the year that historically is negative. All of the other months, sometimes they're big months up, sometimes they're small months up, but September is the only month that historically is down.

7:27So it's somewhat to be expected. The seasonality is here. Now, also, why does it start in August and go into September? Well, what happens in August? The running joke. Everyone is on vacation. They're all somewhere else. They're not in front of their screens. See this in stock market. see this in Bitcoin, et cetera. So I think that's one piece of it is definitely that. The second thing is that as you look at the legacy or the traditional finance world, there's a lot of uncertainty still. There's a lot of speculation that's going on. Some people are trying to figure out what's going to happen with interest rates.

7:57Now we got a little bit more clarity given that Jerome Powell has come out and said that he's going to likely cut rates in September. But I still think that there's a lot of folks who are saying, what are we going to do with our tactical allocation? If we have uncertainty, Maybe we're not going to put as much money into the market as we previously thought we were. So what's interesting is Bitcoin is going down at the same time the S &P has been going down over the last week or so, right? This is a thing that is a broad market pulldown or a kind of resetting. Now, the reason why I think that's important, maybe the biggest takeaway from this, is what you don't want to have is you don't want to have Bitcoin's price go from$69 ,000 in November.

8:36It was$69 ,000, I think, on November 1st of last year, all the way up to, let's say,$150 ,000, which I pretty much have been saying I could see that happening in this bull market. If you just get a straight line there, then what ends up happening is you're probably going to get a very big dump on the other side, right? The bear market is going to be pretty brutal. So instead, what you want is you basically want these advancements in price. You want some sort of correction and resetting, right? You want to wipe out some of the open interest and some of the leverage in the system, kind of reset at a lower price, and then move up after that.

9:07So I think that's what's happening right now. I don't know where we'll kind of end up. Is$110 ,000, you know, the bottom,$108 ,000,$105 ,000,$112 ,000, like somewhere in this general range, I think that we are going to reset. And then that gives us the ability to move back up. And so you can almost think of like setting a foundation of the price. All of the conditions become much more attractive and we go up. What I don't think people should expect is some like magical fast recovery. Remember, September on a seasonality basis is usually down. So I'm not saying it's going to be down this year, but I am saying that you should have tempered expectations going into this.

9:42And the other piece is there's a lot of buying coming. Like you ever heard of people being like, what was it? The British are coming. Remember Paul Revere, right? He was running from house to house on his horse saying the British are coming, the British are coming. The Bitcoin treasuries are coming. The Bitcoin treasuries are coming. Tell your friends. All of them are about to get access to their capital, and they're going to start buying in the market. So it's billions of dollars collectively that should be buying Bitcoin. Now, there is not as simple of an analysis because some of those dollars are hedged.

10:14So when they put on the Bitcoin exposure, their investors are then putting on a short Bitcoin spot exposure. And so they can be kind of negated dollars. But I do think that as that capital starts to flow into the market, you're going to see a lot of people get very excited because there's going to be continuous announcements of people buying Bitcoin, right, which kind of gets people excited. It's hitting the news. It's driving some FOMO to it. But the second thing is that if there's more buyers than sellers, the price should start going back up again. And so I think that this range that we're kind of in, call it 125 to maybe 110, will kind of hang out here for a while.

10:51But as we see these buyers come into the market, as we see the interest rate cut in September, like all of these components are going to feed into Bitcoin. I do not believe has topped in any way for this market cycle. I'm not always right, but those are my views on why Bitcoin is going down. So hopefully helpful to all of you who keep asking. That's it for today. Remember, we have 19 ,856 subscribers on YouTube. My goal is to get to 1 million, but the only way we get to 1 million is if we first get to 20 ,000. So please make sure that you subscribe to the channel. We'll keep cranking out these videos, trying to inform you with whatever the views are that I've got on what's happening in business, finance, geopolitics on a daily basis.

11:27I'll see you guys live tomorrow from the desk of Anthony Pompliano.