The Infants' Intifada - Up and Down Wall Street - A. Abelson - Barrons.com

AND THE MONEY IS WHERE?: The Infants' Intifada - Up and Down Wall Street - A. Abelson - Barrons.com

One also tends to ponder the old number from the 1960's and 70's which related to the average cost of creating each job.

As shown in the WSJ this week, productivity is being helped by outsourcing (out of the US sourcing) and this can concentrate funds to provide more capital for those jobs that are left.

But, as the cost of labor goes up due to Obamacare, etc., more capital ought to be required to fund each job.

And, the US doesn't save enough to even cover the US annual deficit - let alone new cars, home mortgages, investment into the new business, etc.

Similarly, Europe has come countries that save (e.g. Germany) and some that have to borrow from others (e.g. Greece and Portugal).

It is thus reasonable to assume that all this stored capital and saving going to government has to lessen the capital going to private business and the consumer.

And, with less capital allocated (efficiently), it's hard to believe there's the basis of a sustained recovery (sort of like with housing prices expected to always grow faster than incomes)?