'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.
- Sent using Google Toolbar"
Friday, September 24, 2010
Change in Tone Depends on Obama - WSJ.com
WRONG FROM SQUARE ONE: Change in Tone Depends on Obama - WSJ.com: "
Whatever else might be said about the Administration - the bottom line is their economic policies are making things worse for adding jobs and building up the American economy. And they just don't believe this is the case. So, one can only suggest the apropos word would be 'deluded'.
That the Administration believes that by borrowing and taxing money from anyone other than the poor or middle class to expand entitlements and benefits will revive and build the economy is also clear from actions, statements and priorities.
Where the Administration focus on the middle class and ignorance of the overtaxing of the economy is evident in states like Michigan where a once extremely vibrant business sector and economy is now more of a ghost - as evident in Detroit.
So, the choice is to do what the Asian success stories do - rely on entrepreneurs, cut back on government and invest for the future; or, do like the US is doing now - tax and beat up on investors and business and hope they aren't so terribly beaten up that they will still be able to pay the country's bills.
2 years in on this policy would strongly suggest that it not only isn't working, but that things are getting worse.
- Sent using Google Toolbar"
Whatever else might be said about the Administration - the bottom line is their economic policies are making things worse for adding jobs and building up the American economy. And they just don't believe this is the case. So, one can only suggest the apropos word would be 'deluded'.
That the Administration believes that by borrowing and taxing money from anyone other than the poor or middle class to expand entitlements and benefits will revive and build the economy is also clear from actions, statements and priorities.
Where the Administration focus on the middle class and ignorance of the overtaxing of the economy is evident in states like Michigan where a once extremely vibrant business sector and economy is now more of a ghost - as evident in Detroit.
So, the choice is to do what the Asian success stories do - rely on entrepreneurs, cut back on government and invest for the future; or, do like the US is doing now - tax and beat up on investors and business and hope they aren't so terribly beaten up that they will still be able to pay the country's bills.
2 years in on this policy would strongly suggest that it not only isn't working, but that things are getting worse.
- Sent using Google Toolbar"
'Macro' Forces in Market Confound Stock Pickers - WSJ.com
' WHAT WILL BALANCE OUT LABOR SUPPLY AND DEMAND?: Macro' Forces in Market Confound Stock Pickers - WSJ.com: "
Here is the key and the obvious answer to high unemployment:
'...economic overcapacity that has resulted in persistent high unemployment rates...'
Labor is one of the production inputs. Since it is clearly being substituted for, it is clearly too expensive. But, of course, that's the problem that can't be touched (see union strikes and government policies to raise both the direct and indirect costs of labor to satisfy social concerns more important than joblessness, like fancy healthcare, early retirement, unsaved for pensions, etc.).
To bring the labor cost and demand equation back into balance will certainly take something that's not in the 'macro' picture now. Someone could start taking bets; but, then again, some already have.
- Sent using Google Toolbar"
Here is the key and the obvious answer to high unemployment:
'...economic overcapacity that has resulted in persistent high unemployment rates...'
Labor is one of the production inputs. Since it is clearly being substituted for, it is clearly too expensive. But, of course, that's the problem that can't be touched (see union strikes and government policies to raise both the direct and indirect costs of labor to satisfy social concerns more important than joblessness, like fancy healthcare, early retirement, unsaved for pensions, etc.).
To bring the labor cost and demand equation back into balance will certainly take something that's not in the 'macro' picture now. Someone could start taking bets; but, then again, some already have.
- Sent using Google Toolbar"
Thursday, September 23, 2010
Answer to Debt Woes Eludes Cities, States - WSJ.com
WHAT WILL GET US TO THE FOURTH INNING?: Answer to Debt Woes Eludes Cities, States - WSJ.com: "- Sent using Google Toolbar"
Clearly, the inability to consider, let alone act on programs that will be necessary in the long run, lead one to believe that we are owning in the 3rd inning of getting our economy to get back into a leadership and growing role.
Something needs to awaken the public to the fact that blaming the Chinese for what we have failed to do ourselves is a red herring.
Clearly also, the administration can't understand why one more credit card to the middle class won't get the economy growing. The administration seems to be blissfully ignorant of the fact that credit cards aren't income and that more buying power with constraints on business growth and investment seem contradictory.
But, then again, the 'world of entitlement' is one of give-me not let me earn and choose it myself.
What will move us to the fourth inning?
Clearly, the inability to consider, let alone act on programs that will be necessary in the long run, lead one to believe that we are owning in the 3rd inning of getting our economy to get back into a leadership and growing role.
Something needs to awaken the public to the fact that blaming the Chinese for what we have failed to do ourselves is a red herring.
Clearly also, the administration can't understand why one more credit card to the middle class won't get the economy growing. The administration seems to be blissfully ignorant of the fact that credit cards aren't income and that more buying power with constraints on business growth and investment seem contradictory.
But, then again, the 'world of entitlement' is one of give-me not let me earn and choose it myself.
What will move us to the fourth inning?
Monday, September 20, 2010
Eurocracy Fiddles as the Economy Falters - WSJ.com
AN OXYMORON: Eurocracy Fiddles as the Economy Falters - WSJ.com: "
Stimulating growth through higher taxes and union work rules is an oxymoron. Thus, Obama is blind to the idea that UAW policies create growth and sustainable economic prosperity.
All of these socialist policies are like the family with credit cards. They want a higher and higher standard of living every year and to do so, they keep adding to their credit card debt.
Everyone knows you reach a tipping point. At some point the interest and minimal fixed expenses exceed the ability of the cardholder (read, in this case, government) to sustain the debt.
The papers are full of how public union pension plans are having to face this same problem with too rich benefits and maxed out taxes.
One either supports growth with free labor and low taxes or it seems the opposite (e.g. US, France, Greece, etc.) - and, as with irrigated crops or rain starved crops, the results are as expected - either a bountiful harvest or a sparse one.
Obama thinks a failure to irrigate the US economy shouldn't change the results - well, it sure seems from this article that much of Europe has the same problem.
- Sent using Google Toolbar"
Stimulating growth through higher taxes and union work rules is an oxymoron. Thus, Obama is blind to the idea that UAW policies create growth and sustainable economic prosperity.
All of these socialist policies are like the family with credit cards. They want a higher and higher standard of living every year and to do so, they keep adding to their credit card debt.
Everyone knows you reach a tipping point. At some point the interest and minimal fixed expenses exceed the ability of the cardholder (read, in this case, government) to sustain the debt.
The papers are full of how public union pension plans are having to face this same problem with too rich benefits and maxed out taxes.
One either supports growth with free labor and low taxes or it seems the opposite (e.g. US, France, Greece, etc.) - and, as with irrigated crops or rain starved crops, the results are as expected - either a bountiful harvest or a sparse one.
Obama thinks a failure to irrigate the US economy shouldn't change the results - well, it sure seems from this article that much of Europe has the same problem.
- Sent using Google Toolbar"
Friday, September 17, 2010
China's Real Monetary Problem - WSJ.com
Q&A, A BETTER SOLUTION:China's Real Monetary Problem - WSJ.com:
Brad writes:
Everyone will have a different opinion on what went wrong with the theory that if we opened up our markets and had free trade with China we would be able to sell American products to China's one billion population.
None of that happened. Instead American surrendered it's manufacturing capacity to a socialist country.
Answer:
"What you might give some thought to is why the US is moaning about China instead of doing positive things to enrich America.
There is no reason America should not be growing and rich with jobs - right now!
But the policies of both administrations, Obama and the Democrats coming later and acting even more stupidly, is of course making a problem worse and worse by the day.
The US needs to open itself up to being business-friendly. This includes regulatory, investment and immigration friendliness. It is doing the exact opposite (and in terms of immigration policy, the Republicans are the worst offender!).
In terms of realizing that it takes capital to create new businesses, Bush was right on with tax cuts. But, he also failed to rein in entitlements. This includes public union benefit packages, which are out-of-touch with the rest of the economy.
Right now, the Democrats are borrowing way beyond the country's means to further expand and extend entitlements of all kinds. This is exactly the wrong policy!
The US has all the potential to compete and create jobs; but, the economic ineptness of the administration and the Republicans is holding back and wearing away that potential. And, while the Republicans may have 'some' clue as to what is going on; the Democrats clearly have 'none'!
- Sent using Google Toolbar"
Brad writes:
Everyone will have a different opinion on what went wrong with the theory that if we opened up our markets and had free trade with China we would be able to sell American products to China's one billion population.
None of that happened. Instead American surrendered it's manufacturing capacity to a socialist country.
Answer:
"What you might give some thought to is why the US is moaning about China instead of doing positive things to enrich America.
There is no reason America should not be growing and rich with jobs - right now!
But the policies of both administrations, Obama and the Democrats coming later and acting even more stupidly, is of course making a problem worse and worse by the day.
The US needs to open itself up to being business-friendly. This includes regulatory, investment and immigration friendliness. It is doing the exact opposite (and in terms of immigration policy, the Republicans are the worst offender!).
In terms of realizing that it takes capital to create new businesses, Bush was right on with tax cuts. But, he also failed to rein in entitlements. This includes public union benefit packages, which are out-of-touch with the rest of the economy.
Right now, the Democrats are borrowing way beyond the country's means to further expand and extend entitlements of all kinds. This is exactly the wrong policy!
The US has all the potential to compete and create jobs; but, the economic ineptness of the administration and the Republicans is holding back and wearing away that potential. And, while the Republicans may have 'some' clue as to what is going on; the Democrats clearly have 'none'!
- Sent using Google Toolbar"
China's Real Monetary Problem - WSJ.com
PONTIFICATING CONGRESS SHOWS ECONOMIC MYOPIA: China's Real Monetary Problem - WSJ.com:
"What was amazing listening to Bloomberg over the past day was to see and hear all the pontificating members of Congress talk about job losses due to the yuan valuation, but they said nothing about wanting higher prices at Walmart for every American or potentially much higher interest rates if the Chinese sell their holdings of US bonds.
Clearly America isn't going to set up factories to sell the consumer goods at Walmart; and, if we effectively boycott Chinese goods, then they will reciprocate.
So would the US rather have jobs making clothes or selling computers and technology?
The fact that the Congressmen were pontificating with such a UAW view of the world is certainly another reason to be worried about the impact of government on the economy.
- Sent using Google Toolbar"
"What was amazing listening to Bloomberg over the past day was to see and hear all the pontificating members of Congress talk about job losses due to the yuan valuation, but they said nothing about wanting higher prices at Walmart for every American or potentially much higher interest rates if the Chinese sell their holdings of US bonds.
Clearly America isn't going to set up factories to sell the consumer goods at Walmart; and, if we effectively boycott Chinese goods, then they will reciprocate.
So would the US rather have jobs making clothes or selling computers and technology?
The fact that the Congressmen were pontificating with such a UAW view of the world is certainly another reason to be worried about the impact of government on the economy.
- Sent using Google Toolbar"
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