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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 (47786)	12/20/2005 1:49:10 PM
From: gpowell	Read Replies (1) \| Respond to of 110194

If wages will be high then please tell me why they are not high. They are high, but thanks to an import of cheaper labor they aren’t as high as they could be. Furthermore tell me what happens to wages in a consumer led recession. What is the cause of the consumer led recession? Is it a permanent reduction in the expected life-cycle income, or is it a discoordination between consumer’s desired output and that produced by entrepreneurs?

To: mishedlo who wrote (47786)	12/20/2005 1:56:41 PM
From: GST	Respond to of 110194

<If wages will be high then please tell me why they are not high.> Economics 101 -- benefits go to either of these three: 1) consumers, 2) investors, 3) employees. We are all three and we all benefit. The time to worry is when productivity growth has stalled -- then we are all losers. Redistribution can be used as a substitute for real productivity growth in the short run -- and that is EXACTLY what we are seeing today. But it is utterly futile and self-destructive. Productivity growth makes people poor and unemployed and holds down wages for those who do work? That is very funny.