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Patrick saysignoring the cause (outsourcing of jobs and insourcing of illegal slave labor).
If those two things were to disappear, do you think that real incomes would keep up with the resulting inflation ? I don't. I'm not saying that outsourcing and cheap immigrant labor are intrinsically good things. It's more a case of "it is what it is." The natural course of history. I'm not at all convinced that it can be fought, with a positive outcome.
The trend towards diversity and the scary realization that in 100 years, Americans of European descent will be just another minority group, is another one of those "it is what it is" phenomenons that contributed to the election of Trump. Again, this isn't something that can be changed, although it's a fear that can be played to in subtle ways in political campaigns. MAGA ! MAWA !
Patrick says
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Just questioning how easy it would be to reverse, and the consequences on prices and the ability of middle class incomes to keep up
but the more immediate problem for the poor masses of all races is the lack of work at reasonable wages,
This is clearly true. The media still has no idea to how to handle the case where the public disobeys the media's direct orders and instead uses democracy to elect the candidate who is actually concerned about their pain.
Any reporters out there? Please, stop just making it about the symptom (Trump) while ignoring the cause (outsourcing of jobs and insourcing of illegal slave labor). You can make a difference.
This is different. Cheap labor, both at home, and through outsourcing obviously give us lower prices.
Why wouldn't the higher wages simply be offset by the price increases and rent increases ?
This statement is meaningless unless quantified. What's the percentage by which the prices are lower than in "no illegals, no outsourcing" scenario?
Satoshi_Nakamoto saysThis statement is meaningless unless quantified. What's the percentage by which the prices are lower than in "no illegals, no outsourcing" scenario?
I disagree. You can say that the price of tea goes up, if the supply of coffee for some reason goes to zero and be totally correct, without being able to specify such details. In fact it's the details pretty much by definition of such a situation, which remain unknown.
Cheap labor, both at home, and through outsourcing obviously give us lower prices. (not denying the pain to working class Americans. Just questioning how easy it would be to reverse, and the consequences on prices and the ability of middle class incomes to keep up).
marcus saysWhy wouldn't the higher wages simply be offset by the price increases and rent increases ?
Sure, it's tricky because it's circular: wages -> prices -> wages -> prices
But the entire economy is kind of like the fish in the ocean. When the plankton starve, eventually all the fish starve. The more the plankton have to eat, the healthier all the fish can be.
I like the ecological analogy. The problem is however that plankton is, exactly what the elite see most people as. The larger (more wealthy) eat the plankton for supper, and the plankton are fighting just for space or resources to create income. Unless every plankton has the resources to create their own income (the best example in this analogy would be land because a farmer harnesses the energy of the sun to store value just like plankton) then the system is rigged in favor of those that do have possession/access to resources.
I think it just started making a profit, at least on paper.
Reality: AMZN is barely profitable. the PE ratio was 223 (rounded) at market close today:
That's a valid question, but I think it's certainly doable because incomes will go up with more jobs here and less competition from illegals. American citizens will indeed pick tomatoes if the wages are high enough. And if the wages are high enough at the low end, those people will spend their money and the wealth will trickle up to the middle class.
Australia seems to be doing fine with the highest minimum wage in the world, and the toughest laws against illegal immigration in the world as well.
Trump is probably talking the price down so his fund manager pals can by it on the down spike.
Any reporters out there?
marcus saysWhy wouldn't the higher wages simply be offset by the price increases and rent increases ?
Sure, it's tricky because it's circular: wages -> prices -> wages -> prices
But the entire economy is kind of like the fish in the ocean. When the plankton starve, eventually all the fish starve. The more the plankton have to eat, the healthier all the fish can be.
The main trick is that the poor spend most of what they get, benefiting the economy directly. As you move up the economic scale, people save more and spend less, which is great for investment, except for the fact that there is no point to investing when no one has money to buy anything.
Trump is talking down Amazon because he is a petty vicious spoiled rich kid and the Post, owned by Bezos, holds him accountable for what he says and does. Where is all of trumps outrage about Ebay?
For every Amazon package it delivers, the Postal Service loses $1.46
https://www.washingtonexaminer.com/for-every-amazon-package-it-delivers-the-postal-service-loses-146
For every Amazon package it delivers, the Postal Service loses $1.46
I'll tell you, as soon as you tell me how much the price of tea goes up when the supply of coffee goes to zero.
Trump is talking down Amazon because he is a petty vicious spoiled rich kid and the Post, owned by Bezos, holds him accountable for what he says and does. Where is all of trumps outrage about Ebay? What a schmuck.
marcus saysWhy wouldn't the higher wages simply be offset by the price increases and rent increases ?
Sure, it's tricky because it's circular: wages -> prices -> wages -> prices
But the entire economy is kind of like the fish in the ocean. When the plankton starve, eventually all the fish starve. The more the plankton have to eat, the healthier all the fish can be.
The main trick is that the poor spend most of what they get, benefiting the economy directly. As you move up the economic scale, people save more and spend less, which is great for investment, except for the fact that there is no point to investing when no one has money to buy anything.
That Trump goes after companies is absolutely baffling to me. Republicans and the tea Party for YEARS wailed about the gubbermint staying out of big business and yet here we have a deranged president who sees it fit to throw tantrums and go after companies if they have anything to do with being against him or saying anything about him in a negative way. And yet what do we hear out of the GOP, its supporters and the tea party? Not one single word.
https://nypost.com/2018/03/31/why-the-rush-to-defend-amazon/
This is clearly true. The media still has no idea to how to handle the case where the public disobeys the media's direct orders and instead uses democracy to elect the candidate who is actually concerned about their pain.
Any reporters out there? Please, stop just making it about the symptom (Trump) while ignoring the cause (outsourcing of jobs and insourcing of illegal slave labor). You can make a difference.