To: Haim R. Branisteanu who wrote (71572 ) 5/6/2000 10:12:00 AM From: samim anbarcioglu Read Replies (1) | Respond to of 152472
Haim, >> The economy is not more productive by a rate of 4.5% 5% for each of the last 3 years. Labor intensive task were exported Mexico a great example and we import it back that is why the big trade deficit. This point is correct, but incomplete; Labor intensive tasks when offloaded to other countries do have a negative effect on the current account (export - import account) of our country, but the story does not end there. The extra industry thusly brought to places like Latin America, Pac Rim countries increase wealth there, and they can now afford to buy products like American medicine, aircraft, equipment, software, movies, technical consulting, civilian construction, CDMA licences and royalties, corn, wheat, rice, advanced science etc. At the moment, largely due to imperfections in the global economy (which is another conversation subject), our current account in the US has a negative balance. Even this fact has its pros and cons; as long as the rest of the world want our dollars and we want their goods, everything is hunky dory. The trick is to maintain supply and demand equilibrium. This equilibrium may occur at various levels. As to the increases in the price of milk and bread in NY; It happens, naturally. but they make up only a small fraction of the consumers' shopping basket, therefore it all averages out, and at the end you have to talk about the CPI. You can not take a few specific items out of the basket and make a case (how about that pun?). My suits, shirts and shoes used to cost more than twice as much 20 years ago as they do today, and they are made in the US. But due to laser driven cloth cutting and other efficiencies, they are now much cheaper. happy weekend