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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (318)	10/20/2000 11:08:48 AM
From: Ahda	Read Replies (1) \| Respond to of 24758

I don't think you can define skill unless you move it out of context of wages. If there is a shortage of any given kind of labor the costs of getting that labor is back to free market determined. No plumbers available whoops three hundred an hour. Which takes me back to: In inflationary wage demand regimes service follows manufacturing. In this particular time period the manufacturing segment of our economy moves to other lands to keep labor costs low. The increased cost demand is not felt as less costly outsourcing is still available. The problem in my mind is not the the amount of employed but how to control rates when they are past history and create problems instead of allowing natural sequence of supply and demand to regulate. In my opinion we can't halt world inflation because it is also growth on the part of other nations. So i guess from my point of view on an investment base the greater opportunity lies outside of this nation. I want to laugh here as I think numerous corporations feel as i do but are getting hung on a day to day basis due to dollar conversion.

To: ahhaha who wrote (318)	10/20/2000 1:00:21 PM
From: gpowell	Read Replies (2) \| Respond to of 24758

How does one define "unskilled"? I don't have an exact definition of unskilled labor. In the context of Krugman’s argument, unskilled labor is anyone displaced by automation. Have wages of skilled workers declined due to automation? Apparently not, but they should since automation increases the productivity for all workers, not just industrial workers, the net effect ceteris paribus would be a lowered demand for all labor. Since rates for skilled labor have risen (according to Krugman), the need to create, maintain, and run the new automation must have shifted (increased) the demand curve for skilled labor, which more than compensates for the demand lowering effect of greater productivity. Unfortunately for the industrial worker, there is no compensatory factors to soak up their increased supply. Consequently, income inequality widens simply because of supply and demand.