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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (14325)	10/30/2004 1:24:34 AM
From: GraceZ	Respond to of 116555

While this is true for those jobs which require more knowledge, training and experience to be done, a less educated worker can be made more productive with more sophisticated tools or methods. You could have twenty educated experienced guys with shovels, in fine physical shape, yet my money would be on the beer drinking overweight bulldozer driver in a match up. Capital goods can make up for labor, but only a portion of the gain will go back to capital, a large part will go to labor even with little additional skill or training on the part of the employee. The reason Americans are more productive than their Chinese counterparts, on average, has more to do with the capital base than their level of education and training or even how hard they work. I don't doubt that the Chinese have us beat in terms of working hard but they suffered through 80 years of Marxist ideology. Marx thought that labor was the primary input and should receive all that it produces. This left capital out of the picture. What would have gone to capital to improve the base got siphoned off by the politicos.