If we add up all these tidal forces, the conclusion is self-evident: labor “inflation” has just shifted into second gear.
One of the lesser known manifestations of the inflationary crisis in early-1920s Germany was rampant wage inflation. Bourgeois burghers complained bitterly about the high wages being demanded–and received–by tradespeople. This reversal of fortune–wage earners gaining some power over the upper-middle class and wealthy–was naturally upsetting to those accustomed to wielding power over mere laborers.
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But when the roof is leaking or the car won’t start, negotiations favor the few who can actually fix the problem. Despite the overblown hoopla about AI, ChatGPT can’t fix leaky pipes or roofs, nor will it ever be able to do so because all it can actually do is play around with words. Since we can’t repair a leaky roof or prune a tree with words, Large Language Model (LLM) – Machine Learning AI is useless in the real world.
Which brings us to the remarkable competition among the uber-wealthy for competent housekeepers: Palm Beach housekeepers are making $150,000 a year due to massive demand from the wealthy.
It’s certainly tempting to collect a cool $120,000 to $150,000 a year for dusting the Dali and other fine art, but as with many other forms of labor, the skillset required isn’t quite as easy as it looks from the outside:
The mass wealth migration to Florida from New York and other high-tax states has created record demand for household staff in elite Florida enclaves–especially Palm Beach. Demand for butlers (now called ‘hospitality managers’ or ‘estate managers’) as well as nannies, chefs, drivers and personal security has surged, according to staffing agencies.
It’s the shortage of housekeepers, however, that has created the biggest mess for wealthy homeowners. Many of the wealthy emigres to Florida bought big homes and now need people to clean them. Hotels, resorts and businesses are also vying for cleaning staff. The result: Typical pay for housekeepers has rocketed from about $25 an hour in 2020 to $45 or $50 an hour today, according to some agencies.
Bidding wars between wealthy homeowners have become common. Staffing agencies are posting ‘Help Wanted’ ads all over the web and throughout West Palm Beach. Clients are growing frustrated.
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”At first they’re in shock, and they say, ‘No way I’m paying that,'” Berube said. “It’s even uncomfortable for me to give them the numbers. But when they try to hire someone for less, with less experience, they almost always come back to us and say, ‘I learned my lesson. We are willing to pay for the experience.'”
Berube said the housekeepers for the wealthy need highly specific skills–from how to move quietly and unnoticed throughout the house, to how to carefully clean antiques, flatware and fine art and how to properly wash and press fine linens.
“There are specific tools and skills you need to work in fine homes,” she said.
In other words, Jeeves won’t come cheap, and the outraged wealthy must swallow their targeted frugality–lavish spending on themselves, low pay for the help–if they want things done properly in the real world.
