Bernanke Signals No Policy Shift - WSJ.com

LOGIC VS. LA-LA-LAND: Bernanke Signals No Policy Shift - WSJ.com: "- Sent using Google Toolbar"

Let's ponder?

If 'number of jobs' is equivalent to the 'total labor expense / cost of labor' in the production equation;

and, if 'production' is really equivalent to the price at which goods can be sold (with some elasticity of demand);

and, if 'cost of capital' includes the idea of the necessary after-tax return on capital required by investors;

then,

when one looks at the production equation:

production = cost of labor + cost of capital + cost of raw materials

it would sure seem that the administration has raised the cost of labor and capital and is pushing against the value at which goods can be sold. And, if US production can be substituted for with foreign production (goods from China or India, say), then it's hard to believe that the US production capacity doesn't have to shrink.

And, gee, that's exactly what's staring us in the face.

(And, should the Senator harping about the Chinese yuan revaluation be other than drunk or stoned, it's hard to believe there aren't other countries that won't substitute their low cost production for, should it be, the higher cost production from China. But, these people must have been trained for the law and not business, economics or finance.)