Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (315623)	12/14/2006 3:53:31 PM
From: combjelly	Read Replies (1) \| Respond to of 1574505

"Well its not like worldwide wages equalize over night." True. But once wages in the US drops below a certain threshold, then the whole house of cards comes apart. And that can happen pretty quickly. A declining middle class, especially the one that has been the driver of the world economy for more than half a century, is not something that is to be considered desirable.

To: Elroy who wrote (315623)	12/14/2006 5:09:36 PM
From: bentway	Read Replies (1) \| Respond to of 1574505

"But since Americans today are at the top end of the worldwide pay scales, the wage pressure has got to be down, not up." I agree, and this is inescapable. We'll experience negative wage pressure here for a long time. We'll even lose our place as the consumers for the products of the world at some point, as the middle classes in formerly under-developed countries form and consume. China and India will be developing populations of consumers that will dwarf ours.

To: Elroy who wrote (315623)	12/15/2006 7:57:48 PM
From: TimF	Read Replies (2) \| Respond to of 1574505

If Americans make $80k per year and UAE laborers make $5k per year, they gradually head toward each other. 1 - Not all goods and services are easily internationally tradable. 2 - For some goods or services that are tradable being close to the market can still be an advantage. 3 - You have to consider productivity. Higher productivity in the US allows for higher wages even in areas where goods are easily tradable. 4 - Trade increases efficiency, so in the longer run even when it does lower the wages of some Americans while increasing wages for some people overseas, it will tend to increase the overseas wages more then it decrease the American wages. 5 - Trade lowers prices on some goods and services. Which helps maintain real wages even if it doesn't help with nominal wages.