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

To: Moominoid who wrote (65353)	7/6/2006 10:27:47 AM
From: GraceZ	Read Replies (1) \| Respond to of 110194

There is certainly a greater supply of low productivity workers which drives down their wages and a shortage of high productivity workers which drives up their wages. That said, individuals are not prevented from moving from the ranks of the low producers to the high. The US has one of the most mobile societies. Most of the people in the two highest quintiles spent time in the lower quintiles and only 3% of those in the lowest quintile will spend their entire lives there. People aren't worth much until they acquire the specialized skills and work experience. Capital improvements can make up for their lack of skills, improving their productivity but that doesn't mean that those productivity gains will go to them, those improvements in productivity are returned to capital in times when the market value of their job is driven down by an excess of low skilled labor.