>>I disagree. The market is driven ultimately by earnings and interest rates. The market has been rallying for a year.
Do you remember the Reagan deficit?<<
But you ultimately have to have consumers consume so if no jobs or low-paying jobs, then ... well ... no earnings IMHO. And what about tax receipts (see Lizzie I read your posts! lol)
Take China for instance. If they didn't peg their currency, paid better than "slave wages", had the EPA (I mentioned before friends who have visited and said it's an environmental disaster), had some healthcare for its citizens from corporations and the govt., add some tort reform in the US then things might start to get a little more equitable. But until then I see nothing but problems for the US economy and its workers because jobs will continue to move.
Everyone has an opinion on this. The R's say "well we should because it's a free market", the D's say "all the good jobs are being outsourced, offshored, whatever". I think it's more complex but I do think "it's like giving away the keys to the castle" because if you lose an industry or your core competency (especially in manufacturing) I doubt you will ever get those back.
Are we going to have a nation of people giving each other $35 haircuts, selling each other insurance, credit cards, and stocks. Intuitively, if this happens and you buy all Japanese, Chinese, Korean (name your country) goods then by definition this will lead to a huge trade deficit and it's not difficult to figure out the rest of this scenario. In fact I think it is happening now. |
