Letters to the Editor: Real Wages Don't Tell the Whole Compensation Story - WSJ.com

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The best equation I know of is that "production = labor + capital + raw materials".

If production is equal to the price at which the market will buy a product, then the other factors all need to be considered to make the production cost competitive.

This of course is what is totally ignored by the Democratic bills that are increasing the cost of labor (so many bills), the cost of capital (the new financial reform bill comes to mind plus the open ended increases to taxes) and the cost of raw materials (here the misguided pandering to environmentalists is clearly increasing this cost for energy).

So, if the production cost in the US can't be competitive, it is hard to see how job growth in the US can take root.

Clearly, the Administration and Congress are blind to the realities of this type of production equation (as was and I am rather confident is the UAW, etc.).