To: elmatador who wrote (41103 ) 10/11/2008 8:54:05 AM From: arun gera Respond to of 217792 >This is proof of my theory that the developed economies ran out of steam early 1973 and only fleecing other countries kept it alive.> One thing that kept it going after 1973 was that more women entered the workforce in the developed economies.bls.gov >A major development in the American workforce has been the increased labor force participation of women. In 1970, only about 43 percent of women age 16 and older were in the labor force; by 1999, that figure had risen to 60 percent. From 1999 to 2004, women’s labor force participation rate receded slightly to 59.2 percent, still well above the rates that prevailed throughout the 1970s, 1980s, and much of the 1990s. Along with rising labor force participation, women also made substantial inroads into higher paying occupations. In 2004, half of all management, professional, and related occupations were held by women. Women’s earnings relative to men’s also have risen. From 1979 to 2004, women’s earnings as a percent of men’s increased by 18 percentage points, from 62 to 80 percent. The movement of women into the labor force and into higher paying occupations has gone hand in hand with their pursuit of higher education. For example, in 1970, only 11 percent of women age 25 to 64 had completed 4 or more years of college; by 2004, nearly 33 percent held a college degree.> For all the glories of capitalism, I think that the primary productivity gains as well as demand comes from the following process - agricultural worker moves to the city and becomes a blue collar worker. That accounts for the biggest productivity increase for the modern economy. At some point is his wife is forced to join the work force, because his peer's wives has been working and that family seems to be living better. That happened in the 1965 to 1985 period in the US. Then you have to wait for one more generation for incremental productivity when the kids go to college. Then the college kid marries his college educated girlfriend or coworker, and they buy a big house in the suburbs/city. That probably happened between 1995 to 2005 in the US. After that the incremental demand and productivity taper off. Demand is built by the cultural conditioning of generations. Productivity is built by fulfilling this demand by moving from non-scalable internal production organization of family, clan, and friends; to a market economy with its corporations, governments, and middlemen that bring economy of scale to the marketing and production of goods and services associated with the demand. -Arun