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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: John who wrote (35288)	8/8/2010 12:31:44 AM
From: grusum	Read Replies (1) \| Respond to of 103300

"It seems that your scenario assumes that demand always increases." i didn't assume that demand always increases. demand is infinite. but price and along with cost will determine the amount of sales. if the price and cost of a house rises high enough, sales will drop to zero. lower the price and costs of home ownership and sales will rise accordingly. in your example you seem to be saying that increased efficiency is detrimental. how can that be? that's like saying we should return to plowing fields with horses. if we did that we'd all be starving. it is increased efficiency of labor that has allowed us to be clothed and fed as well as we are. that the analyst lost his job to efficiency is just part of the market working. in a good strong economy he will find other work. he might even get paid more for less hours on his next job. and don't forget i'm talking about a very gradual process in a very strong free market economy. jobs get eliminated, but there will always be new ones to take their place. that's what's been happening throughout history in the free market. the economy didn't founder when buggy whip makers went out of business and took all those manufacturing jobs with them. the free market economy eliminated those jobs. but people simply found new jobs in emerging businesses. one day those jobs will be eliminated to due efficiency also. but new ones will come to take their place. and throughout the whole process labor becomes more efficient and gradually people will need to work less hours to get more done and to get paid more.