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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sunny Jim who wrote (71264)	11/16/2007 2:19:25 AM
From: elmatador	Respond to of 116555

"why the park workers no longer can rake"? Because developed countries refuse mass migration of people who could do the raking. Thus they depend on the locals who price their work high because there are no Nigerians, Mexicans and Indonesians there to compete for the raking job. Therefore they have to apply machinery. Since machines need energy, a machinery-based economy needs lots of energy. If the government tax energy higher, the machinery-based economy would collapse, because it raised based on cheap energy. The "reverse progress" will happen only if energy costs increase so-much that would be cheaper to hire rakers. But consider that as energy prices increase, it provides an added incentive for oil/gas companies to go further seeking for oil. The resulting effect will be: high energy costs to keep the machinery-based economy humming along. Just expect to pay more to have the same, a.k.a inflation.