Shervin Pishevar says underemployment is hardening into widespread economic stasis

Shervin Pishevar is a name that may not be known to most Americans. But to those within the tight-knit world of Silicon Valley finance, he is a legend. Shervin Pishevar is the founder and CEO of Investment company, one of the most important venture capital firms in the tech industry. He and his company have founded or helped form some of the biggest names in the world of tech. These include such companies as Virgin Hyperloop, Airbnb, Uber and Social Gaming Network.

Yet, Shervin Pishevar may be even more widely known for his insightful economic and political analyses than for his major accomplishments as an entrepreneur and venture capitalist. He operates one of the most popular Twitter feeds in the tech world, with more than 100,000 followers. Among his followers figure some of the top minds in the world of economics, technology and finance. When Shervin Pishevar shares his opinions, they are read far and wide, making waves throughout the intelligentsia.

Unemployment may be at record lows, but does it matter?

One of the things that Pishevar has addressed is the serious long-term implications of a workforce that is chronically underemployed and underpaid. While the current employment statistics look great on the surface, there have been a number of serious problems with things as they really are.

The main problem, says Pishevar, is that the economy relies on consumer spending for more than 70 percent of its GDP total. This means that any hit to the average consumer’s ability to spend on retail goods is a potentially fatal blow to the economy. But Pishevar says that this is exactly the type of shock that has been slowly building up in the background since the 2008 financial crisis. He says that people have been able to maintain their standards of living, but it has mostly been through the taking on of increasing levels of consumer debt.

 

Pishevar believes that there is a reckoning in the cards. And when the equity markets finally catch up to this fact, there could be an epic stock market crash that may rival anything that has come before.

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