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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: gpowell who wrote (47649)	1/24/2006 12:29:57 PM
From: shades	Read Replies (1) \| Respond to of 306849

How does one define “stable wages?” I think he is saying they dont go down in the currency you are paid. Although the currency could be losing value and purchasing power. Workers may not can buy as much of thier chinese imported stuff at walmart - but they wont suffer the effect of feeling like they are being robbed as much because the paycheck will still be the same amount. Don’t you think that, in the long run, the effect of limiting the return to human activity through preventing wage differentials from occurring would actually be the opposite of what Kessler thinks? I thought he made the case that certain political regimes - say hitler - could have perhaps been avoided with his policy - that the working voters wouldn't get as mad. The bottom line is that Kessler piece is insulting, as he must imagine that people are idiots. I suppose he does - look at all the fools taking US currency for REAL WORK - here and overseas - but I hear that trend is slowing - hehe. but now the negative welfare impact from inflation would add to the misery of those least able to accommodate it. It already is - regardless of Grace telling me because we have wegmans - EVERYONE is rich. What were you saying about pulling the wool over peoples eyes and idiots? Trade barrier legislation in the US (Smoot-Hawley) was already in place by 1930 and no doubt contributed to the depth and length of the great depression. And some economists have theorized that the pending implementation of the Smoot-Hawley Act’s tariffs precipitated the stock market crash. Bhagwati says schumer and protectionism will be bad - but free trade rises all the boats. some wage earners in England will experience decline as the terms of trade between England and the rest of the world has shifted, and the demand for their output will decline. True, and I thought he was trying to say that workers wont be able to buy as much stuff - but at least thier paychecks will not have went down and therefore perhaps they wont be as pissed off and put a hitler GESTAPO type in office - what was it about Bush and spying we here on the news recently? If England and the rest of the world focus only on producing those goods and services where they enjoy an absolutely advantage, the aggregate wages level of all workers in the world will increase - in the long run. Right, in the big picture, in the long run, it is better, but in the short term, those workers with falling paychecks may vote in some extreme gubbments that lead us to war. My cousins are in IRAQ making big US dollars - oblivious to the fact that those US dollars are potentially going to become very weak in purchasing soon. They have been robbed thier whole life by inflation - but you say people aren't idiots - I see people munchin the doughnut watching Oprah hitting that crack pipe - Grace says she sees lots of people taking them 42% loans because loan officers pushing it on them for his next paycheck - if people weren't idiots - and self regulating - they wouldn't do dumb shit like dat eh? Under Kessler’s plan, by keeping wage differentials constant no shifting in production will occur I thought it would, but workers wouldn't get so mad that their wages were going down because only thier purchasing power would be going down - that is a more direct concept they can identify with and get pissed off about rather than inflation robbing them day after day for an equal paycheck. Now that may appeal to someone who has already made tens of millions in the financial industry, but I’d like to think the young kid working in McDonalds would have a better opportunity at improving their situation in a world that is expanding and shifting its output. Grace with her stock and dividend income and the mcdonalds worker who makes 6 bucks an hour sure dont think inflation is robbing them eh? Even as china eats our lunch and takes our farm like buffet says - people still think we have a future and are RICH - did you say people weren't idiots? hehe