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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (47770)	12/20/2005 12:02:06 PM
From: gpowell	Read Replies (1) \| Respond to of 110194

You are of course neglecting to consider growth, i.e. the expansion of the depth and breadth of the goods and services offered for exchange, and surely those capitalist bastards who own the means of infinite production will still require and desire goods and services from “low” productivity areas, such that the wages in these industries will be extraordinarily high. In fact, you may want to review the concept of Baumol’s Cost Disease, and Message 21966901 Message 21969072

To: mishedlo who wrote (47770)	12/20/2005 1:45:44 PM
From: GST	Read Replies (2) \| Respond to of 110194

<Wages will go to zero as productivity goes to infinity (machines replace people).> Not on planet earth they don't. Quite the opposite is the case. If the only productive activity concerned things that machines can do, and if machines do not need as many humans to tender after their needs, then machines would simply replace people -- on robot planet X. But here on earth this is nowhere near to reality. Roughly 5% of Americans have any direct contact with manufacturing things, and yet we have 5% unemployment. If anything you are saying came close to making sense then half the US adult population or more would be unemployed. Your sense of the economy is remarkably limited to some 19th century concept of machine production and a one economy world -- the USA. We live in a global economy where our place in it is far more reliant on knowledge, services and information than on tending manufacturing machines. Get over it -- you are 150 years behind the times.