'Macro' Forces in Market Confound Stock Pickers - WSJ.com

'Macro' Q&A: Too much labor?: Forces in Market Confound Stock Pickers - WSJ.com: "

Question:
Forget about unions,they're an endangered species at this point.The competition American workers have will work for $1/hr.Essentially,the potential American worker has to think about giving up flushing toilets and luxuries such as meat.The only way out is war on a large scale against the east.We both need massive casualties to bring supply and demand for labor back to balance.The real problem,there are too many of us.



Answer:
You'd seem to have missed some alternate lessons of history.

While it is true that those who don't produce are a social burden, what China has clearly shown is that with leadership (i.e. entrepreneurs), the overall wealth of society can be vastly expanded.

We've seen cycles of this in the US - from the vast wealth created by the advent of corporations and the use of industrial technologies in the 19th century to the 1980's when lower taxes and a better tax code enabled the economy to grow again. (recall the debate in the 1980 election: Democrats believed the economy couldn't grow so everyone should concentrate on how to fairly distribute that wealth; the Republicans thought the economy could grow - and, proved it!

If one takes a look around, the are limitless opportunities for our economy to grow. But, we've decided to consume and not invest. It's very simple.

Read any science journal and see all the things that we could invest in. We could invest in the space program, better transportation, etc. - but, this will mean no fat government retirements at age 50, no free healthcare for all, no school dropouts because teachers unions want to preserve a seniority system that resists measuring any quality criteria of teacher performance, etc., etc., etc.

If you read the Pulitzer Prize book on Cornelius Vanderbilt, you see what can happen when society accepts a rough and ready, opportunity for all approach.

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