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1. Rising wages are good for the economy as long as they are associated with higher productivity. Having to hire less productive workers at higher wages is bad as I mentioned above. The key to achieving a better society is better education. American needs to be the world leader in education. We were in the mid 20th century which was a key component in our economic growth. However, other nations caught up with with us and some surpassed us.Higher wages when there is shortage of workers means the employer must hire marginal workers, those he would not normally consider as they are generally less productive. When an employer must spend more on wages and without a corresponding increases in productivity then prices rise. Once the shortage of labor is resolved these employees will find themselves out of a job again.
As long as the number of open jobs are just a few million, employers will be able to find productive employees but when that figures goes to 20 or 30 million, then employers will be hiring low productivity workers and paying higher wages and will still have many millions of unfilled jobs. The result will be higher prices and lower quality and American will be unable to compete in foreign markets.
1. You did not at all address the positives of rising wages I listed above, nor offer any hint of your alternative to achieving a better society.
2. We are in and have been in for decades an artificial glut of labor, due to massive immigration, legal and illegal, and outsourcing. What we now consider a "shortage" could easily be a new normal of an American labor market dominated by AMERICAN LABOR.
3. We are not allowed to compete effectively now, for whatever reason as shown by our massive and ever growing trade deficits.
We have approximately four times the population of Germany, yet they produce twice as many cars as us, while their car manufacturing workers make twice as much.
German car workers are not twice as educated as ours, nor twice as productive.
I don't believe the evidence supports your claim that education is the answer.
And my list of the positives of higher wages, stands. It would be good for American society overall.
2. Over the last 4 years we have gone from a surplus in the labor market to a shortage of now over 6 million. With 19 million workers a day reaching 65 and the economy adding over 200,000 jobs a month, economists are projecting a 34 million employee shortage by 2024. Those new jobs are going to be filled by immigrants or they will go out the country. There is no other option.
Then let them go. America is more than just an economy. I would rather have a smaller nation, that is still America, than some bloated powerhouse that doesn't feel like home.
And I still want higher wages. We've accepted wage stagnation for far too long.
3. Our trade deficit is not do to our inability to compete. Our trade deficit is due to our high rate of spending (consumption). Our exports are increasing rapidly. Since 2008 our exports have increase 75%. However, for the same period our imports have matched those exports so our yearly trade deficit today is little different than it was 10 years ago.
The only way we are going to significant reduce our trade deficit is by spending less and saving more. That will decrease domestic consumption and will make more capital available for expansion of industry to produce more exports. However, we don't need to do that and we shouldn't because it will bring on a recession or an economic slow down. There is nothing wrong with a trade deficit as long as it is not growing rapidly the way it was between 1990 and 2010.
Your point about increased exports is interesting.
But it does not seem to explain the results we see in the real world.
If exports are up, why are wages flat?
How can German car workers make so much? Is it just a coincidence that they have a large trade surplus? I don't think so.
In 2017 the US produced over 11 million cars, Germany only produced 5.6 million. Where did you get the incorrect idea they make twice as many as us?
How can Chinese car workers make so little? Is it just a coincidence they have a large trade surplus?
Sent from my iPhone using USMessageBoard.com
How Germany Builds Twice As Many Cars As The U.S. While Paying Its Workers Twice As Much
"In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. "
Forbes seemed like a good source. If I was wrong, thank you for correctly me. LInk?
I dont' get your chinese car workers comment. Obviously low wages would be a factor to ENCOURAGE exports.
Yet, much higher wages don't seem to be a problem for Germany. Why do you think that is?
1. Rising wages are good for the economy as long as they are associated with higher productivity. Having to hire less productive workers at higher wages is bad as I mentioned above. The key to achieving a better society is better education. American needs to be the world leader in education. We were in the mid 20th century which was a key component in our economic growth. However, other nations caught up with with us and some surpassed us.1. You did not at all address the positives of rising wages I listed above, nor offer any hint of your alternative to achieving a better society.
2. We are in and have been in for decades an artificial glut of labor, due to massive immigration, legal and illegal, and outsourcing. What we now consider a "shortage" could easily be a new normal of an American labor market dominated by AMERICAN LABOR.
3. We are not allowed to compete effectively now, for whatever reason as shown by our massive and ever growing trade deficits.
We have approximately four times the population of Germany, yet they produce twice as many cars as us, while their car manufacturing workers make twice as much.
German car workers are not twice as educated as ours, nor twice as productive.
I don't believe the evidence supports your claim that education is the answer.
And my list of the positives of higher wages, stands. It would be good for American society overall.
2. Over the last 4 years we have gone from a surplus in the labor market to a shortage of now over 6 million. With 19 million workers a day reaching 65 and the economy adding over 200,000 jobs a month, economists are projecting a 34 million employee shortage by 2024. Those new jobs are going to be filled by immigrants or they will go out the country. There is no other option.
Then let them go. America is more than just an economy. I would rather have a smaller nation, that is still America, than some bloated powerhouse that doesn't feel like home.
And I still want higher wages. We've accepted wage stagnation for far too long.
3. Our trade deficit is not do to our inability to compete. Our trade deficit is due to our high rate of spending (consumption). Our exports are increasing rapidly. Since 2008 our exports have increase 75%. However, for the same period our imports have matched those exports so our yearly trade deficit today is little different than it was 10 years ago.
The only way we are going to significant reduce our trade deficit is by spending less and saving more. That will decrease domestic consumption and will make more capital available for expansion of industry to produce more exports. However, we don't need to do that and we shouldn't because it will bring on a recession or an economic slow down. There is nothing wrong with a trade deficit as long as it is not growing rapidly the way it was between 1990 and 2010.
Your point about increased exports is interesting.
But it does not seem to explain the results we see in the real world.
If exports are up, why are wages flat?
How can German car workers make so much? Is it just a coincidence that they have a large trade surplus? I don't think so.
In 2017 the US produced over 11 million cars, Germany only produced 5.6 million. Where did you get the incorrect idea they make twice as many as us?
How can Chinese car workers make so little? Is it just a coincidence they have a large trade surplus?
Sent from my iPhone using USMessageBoard.com
How Germany Builds Twice As Many Cars As The U.S. While Paying Its Workers Twice As Much
"In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. "
Forbes seemed like a good source. If I was wrong, thank you for correctly me. LInk?
I dont' get your chinese car workers comment. Obviously low wages would be a factor to ENCOURAGE exports.
Yet, much higher wages don't seem to be a problem for Germany. Why do you think that is?
Your source does not include “commercial vehicles”, which is stupid as the same companies are making both.
6 Countries That Produce the Most Cars
You used Germany as evidence that a trade surplus leads to higher wages. I used China as evidence that a trade surplus leads to lower wages.
Since there is evidence for both, seems maybe something other than trade surplus is in play
Sent from my iPhone using USMessageBoard.com
1. Rising wages are good for the economy as long as they are associated with higher productivity. Having to hire less productive workers at higher wages is bad as I mentioned above. The key to achieving a better society is better education. American needs to be the world leader in education. We were in the mid 20th century which was a key component in our economic growth. However, other nations caught up with with us and some surpassed us.
We have approximately four times the population of Germany, yet they produce twice as many cars as us, while their car manufacturing workers make twice as much.
German car workers are not twice as educated as ours, nor twice as productive.
I don't believe the evidence supports your claim that education is the answer.
And my list of the positives of higher wages, stands. It would be good for American society overall.
2. Over the last 4 years we have gone from a surplus in the labor market to a shortage of now over 6 million. With 19 million workers a day reaching 65 and the economy adding over 200,000 jobs a month, economists are projecting a 34 million employee shortage by 2024. Those new jobs are going to be filled by immigrants or they will go out the country. There is no other option.
Then let them go. America is more than just an economy. I would rather have a smaller nation, that is still America, than some bloated powerhouse that doesn't feel like home.
And I still want higher wages. We've accepted wage stagnation for far too long.
3. Our trade deficit is not do to our inability to compete. Our trade deficit is due to our high rate of spending (consumption). Our exports are increasing rapidly. Since 2008 our exports have increase 75%. However, for the same period our imports have matched those exports so our yearly trade deficit today is little different than it was 10 years ago.
The only way we are going to significant reduce our trade deficit is by spending less and saving more. That will decrease domestic consumption and will make more capital available for expansion of industry to produce more exports. However, we don't need to do that and we shouldn't because it will bring on a recession or an economic slow down. There is nothing wrong with a trade deficit as long as it is not growing rapidly the way it was between 1990 and 2010.
Your point about increased exports is interesting.
But it does not seem to explain the results we see in the real world.
If exports are up, why are wages flat?
How can German car workers make so much? Is it just a coincidence that they have a large trade surplus? I don't think so.
In 2017 the US produced over 11 million cars, Germany only produced 5.6 million. Where did you get the incorrect idea they make twice as many as us?
How can Chinese car workers make so little? Is it just a coincidence they have a large trade surplus?
Sent from my iPhone using USMessageBoard.com
How Germany Builds Twice As Many Cars As The U.S. While Paying Its Workers Twice As Much
"In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. "
Forbes seemed like a good source. If I was wrong, thank you for correctly me. LInk?
I dont' get your chinese car workers comment. Obviously low wages would be a factor to ENCOURAGE exports.
Yet, much higher wages don't seem to be a problem for Germany. Why do you think that is?
Your source does not include “commercial vehicles”, which is stupid as the same companies are making both.
6 Countries That Produce the Most Cars
You used Germany as evidence that a trade surplus leads to higher wages. I used China as evidence that a trade surplus leads to lower wages.
Since there is evidence for both, seems maybe something other than trade surplus is in play
Sent from my iPhone using USMessageBoard.com
Your link adds in the commercial vehicles for the US, but not for Germany. That's at best confusing, and at worst intentionally misleading.
I certainly did not claim that higher wages led to a trade surplus. I asked a question, in response to Flopper's point on productivity and wages.
Your reading comprehension is extremely lacking.
Something is certainly at play. My question was poised in the hope of uncovering what it is.
We have approximately four times the population of Germany, yet they produce twice as many cars as us, while their car manufacturing workers make twice as much.
German car workers are not twice as educated as ours, nor twice as productive.
I don't believe the evidence supports your claim that education is the answer.
And my list of the positives of higher wages, stands. It would be good for American society overall.
Then let them go. America is more than just an economy. I would rather have a smaller nation, that is still America, than some bloated powerhouse that doesn't feel like home.
And I still want higher wages. We've accepted wage stagnation for far too long.
Your point about increased exports is interesting.
But it does not seem to explain the results we see in the real world.
If exports are up, why are wages flat?
How can German car workers make so much? Is it just a coincidence that they have a large trade surplus? I don't think so.
In 2017 the US produced over 11 million cars, Germany only produced 5.6 million. Where did you get the incorrect idea they make twice as many as us?
How can Chinese car workers make so little? Is it just a coincidence they have a large trade surplus?
Sent from my iPhone using USMessageBoard.com
How Germany Builds Twice As Many Cars As The U.S. While Paying Its Workers Twice As Much
"In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. "
Forbes seemed like a good source. If I was wrong, thank you for correctly me. LInk?
I dont' get your chinese car workers comment. Obviously low wages would be a factor to ENCOURAGE exports.
Yet, much higher wages don't seem to be a problem for Germany. Why do you think that is?
Your source does not include “commercial vehicles”, which is stupid as the same companies are making both.
6 Countries That Produce the Most Cars
You used Germany as evidence that a trade surplus leads to higher wages. I used China as evidence that a trade surplus leads to lower wages.
Since there is evidence for both, seems maybe something other than trade surplus is in play
Sent from my iPhone using USMessageBoard.com
Your link adds in the commercial vehicles for the US, but not for Germany. That's at best confusing, and at worst intentionally misleading.
I certainly did not claim that higher wages led to a trade surplus. I asked a question, in response to Flopper's point on productivity and wages.
Your reading comprehension is extremely lacking.
Something is certainly at play. My question was poised in the hope of uncovering what it is.
My link specifically states that the US produced 24 times as many commercial vehicles than Germany.
Perhaps the vast difference in the number of commercial vehicles plays a part in the wage difference, if that is accurate
Sent from my iPhone using USMessageBoard.com
In 2017 the US produced over 11 million cars, Germany only produced 5.6 million. Where did you get the incorrect idea they make twice as many as us?
How can Chinese car workers make so little? Is it just a coincidence they have a large trade surplus?
Sent from my iPhone using USMessageBoard.com
How Germany Builds Twice As Many Cars As The U.S. While Paying Its Workers Twice As Much
"In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. "
Forbes seemed like a good source. If I was wrong, thank you for correctly me. LInk?
I dont' get your chinese car workers comment. Obviously low wages would be a factor to ENCOURAGE exports.
Yet, much higher wages don't seem to be a problem for Germany. Why do you think that is?
Your source does not include “commercial vehicles”, which is stupid as the same companies are making both.
6 Countries That Produce the Most Cars
You used Germany as evidence that a trade surplus leads to higher wages. I used China as evidence that a trade surplus leads to lower wages.
Since there is evidence for both, seems maybe something other than trade surplus is in play
Sent from my iPhone using USMessageBoard.com
Your link adds in the commercial vehicles for the US, but not for Germany. That's at best confusing, and at worst intentionally misleading.
I certainly did not claim that higher wages led to a trade surplus. I asked a question, in response to Flopper's point on productivity and wages.
Your reading comprehension is extremely lacking.
Something is certainly at play. My question was poised in the hope of uncovering what it is.
My link specifically states that the US produced 24 times as many commercial vehicles than Germany.
Perhaps the vast difference in the number of commercial vehicles plays a part in the wage difference, if that is accurate
Sent from my iPhone using USMessageBoard.com
Wow. that is a very poorly written article.
Would you like to see American car workers make as much as German car workers?
Worker productive is certainly relevant as it's a key component in determining the cost of goods. Over the last 40 years technology improvements have been a driving force behind increased worker productivity. For example steel mills in 1980 used 10 workers per ton of product. By 2010, only 1.5 workers were required.Most of the productivity gains were not due to better workers but better technology.Minimum wage increases have little or no long term positive effect. Raising minimum wage eventually pushes all wages higher and when wages go up without increases in productivity prices rise. So over the long run minimum wages do little to redistribute wealth or to increase personal income. I tend to think they have little long term impact on the economy.That may be good for employees now but over the long haul it isn't. Paying more for less qualified employees means lower productivity, higher prices and lower sales abroad, none of which is good for the economy.
So what about the minimum wage argument; some of whom claim $15.00 per hour would be the solution to all our problems?
Wages that rise do to market demand spurred by increases in productivity benefits everyone, employee, employer, and consumers. However, wages that rise because shortages in workforce are not beneficial to society because the employer is hiring the bottom of barrel, marginal workers who are less productive.
What of the fact that productivity has increased greatly over the last 40 years while wages have remained flat?
1. I've never heard anything about that being relevant in the past.
2. And maybe most, but far from all, and still wages flat.
I won’t comment on productivity of auto workers in Germany vs the US because I don’t know enough to comment.1. Rising wages are good for the economy as long as they are associated with higher productivity. Having to hire less productive workers at higher wages is bad as I mentioned above. The key to achieving a better society is better education. American needs to be the world leader in education. We were in the mid 20th century which was a key component in our economic growth. However, other nations caught up with with us and some surpassed us.Higher wages when there is shortage of workers means the employer must hire marginal workers, those he would not normally consider as they are generally less productive. When an employer must spend more on wages and without a corresponding increases in productivity then prices rise. Once the shortage of labor is resolved these employees will find themselves out of a job again.With falling unemployment, employees will be able to demand higher wages and many people will be hired that aren't really qualified. That may be good for employees now but over the long haul it isn't. Paying more for less qualified employees means lower productivity, higher prices and lower sales abroad, none of which is good for the economy.
Higher wages means more men being able to provide for their families, thus more families.
More families means more people with good, fulfilling lives, raising healthy and productive children.
More and wealthier families means less demand on social services.
more tax revenues.
less crime.
less drug use.
less illegitimacy (a nice reinforcing positive cycle there)
more money to spend on the more American products at the store.
It means a better society to live in.
If the cost is a slightly lower return on my mutual funds, I'm willing, no. I am EAGER to make that sacrifice.
As long as the number of open jobs are just a few million, employers will be able to find productive employees but when that figures goes to 20 or 30 million, then employers will be hiring low productivity workers and paying higher wages and will still have many millions of unfilled jobs. The result will be higher prices and lower quality and American will be unable to compete in foreign markets.
1. You did not at all address the positives of rising wages I listed above, nor offer any hint of your alternative to achieving a better society.
2. We are in and have been in for decades an artificial glut of labor, due to massive immigration, legal and illegal, and outsourcing. What we now consider a "shortage" could easily be a new normal of an American labor market dominated by AMERICAN LABOR.
3. We are not allowed to compete effectively now, for whatever reason as shown by our massive and ever growing trade deficits.
We have approximately four times the population of Germany, yet they produce twice as many cars as us, while their car manufacturing workers make twice as much.
German car workers are not twice as educated as ours, nor twice as productive.
I don't believe the evidence supports your claim that education is the answer.
And my list of the positives of higher wages, stands. It would be good for American society overall.
2. Over the last 4 years we have gone from a surplus in the labor market to a shortage of now over 6 million. With 19 million workers a day reaching 65 and the economy adding over 200,000 jobs a month, economists are projecting a 34 million employee shortage by 2024. Those new jobs are going to be filled by immigrants or they will go out the country. There is no other option.
Then let them go. America is more than just an economy. I would rather have a smaller nation, that is still America, than some bloated powerhouse that doesn't feel like home.
And I still want higher wages. We've accepted wage stagnation for far too long.
3. Our trade deficit is not do to our inability to compete. Our trade deficit is due to our high rate of spending (consumption). Our exports are increasing rapidly. Since 2008 our exports have increase 75%. However, for the same period our imports have matched those exports so our yearly trade deficit today is little different than it was 10 years ago.
The only way we are going to significant reduce our trade deficit is by spending less and saving more. That will decrease domestic consumption and will make more capital available for expansion of industry to produce more exports. However, we don't need to do that and we shouldn't because it will bring on a recession or an economic slow down. There is nothing wrong with a trade deficit as long as it is not growing rapidly the way it was between 1990 and 2010.
Your point about increased exports is interesting.
But it does not seem to explain the results we see in the real world.
If exports are up, why are wages flat?
How can German car workers make so much? Is it just a coincidence that they have a large trade surplus? I don't think so.
so you're saying that the stock market NasDaq and S&P never go up and down? are you truly making that claim? many things affect the market.it did no such things. two weeks ago the fed raised the interest rate. until then there was no issue with the tariff shit. just saying, I have history to support my facts.no they don't. that's pure bullshit. if the GDP is 4% that is based on the economy not the president saying anything.nope, made a bunch. The stock market doesn't care the president. you all think it does, it doesn't. but I digress. BTW, I made 2% in 2008 and 2009. didn't lose anything. you should invest in what I do.
You are correct the markets do not care who the president is, but they do care what he does.
The DJI is down, the S&P is basically stagnant and the NASDAQ has done ok since the beginning of the year.
Trump's first year in office they did very well, then he started a trade war and they all slowed down
The GDP is not 4%. The president threatening tariffs on products always brings the market down, the markets like actual free trade, not your socialist version of trade.
Since the day that Trump made his first tweet about tariffs...
The NASDAQ is up 3.2%, as opposed to being up more than 30% the previous year.
The S&P is down 3.2%, as opposed to being up more than 19% the previous year.
The DJI is down 7.12% as opposed to being up more than 25% the previous year.
And I have actual numbers to support my facts.
Trump's first salvo on tariffs happened on Jan 22 of this year.
On that date the DJI was at 26,214 today it closed at 24,215, a loss of 7.12%
On that date the NASDAQ was at 6931, today it closed at 7057, a gain of 3.2%
On that date the S&P was at 2835, today it closed at 2720, a loss of 3.2%
When are you going to learn, I am never wrong about facts and numbers.
That's not a little. When was the last time it increased that much?Washington compost is pathetic. The cost of washing machines increased a little? That's the thing we all should be worried about? LOL
so you're saying that the stock market NasDaq and S&P never go up and down? are you truly making that claim? many things affect the market.it did no such things. two weeks ago the fed raised the interest rate. until then there was no issue with the tariff shit. just saying, I have history to support my facts.no they don't. that's pure bullshit. if the GDP is 4% that is based on the economy not the president saying anything.You are correct the markets do not care who the president is, but they do care what he does.
The DJI is down, the S&P is basically stagnant and the NASDAQ has done ok since the beginning of the year.
Trump's first year in office they did very well, then he started a trade war and they all slowed down
The GDP is not 4%. The president threatening tariffs on products always brings the market down, the markets like actual free trade, not your socialist version of trade.
Since the day that Trump made his first tweet about tariffs...
The NASDAQ is up 3.2%, as opposed to being up more than 30% the previous year.
The S&P is down 3.2%, as opposed to being up more than 19% the previous year.
The DJI is down 7.12% as opposed to being up more than 25% the previous year.
And I have actual numbers to support my facts.
Trump's first salvo on tariffs happened on Jan 22 of this year.
On that date the DJI was at 26,214 today it closed at 24,215, a loss of 7.12%
On that date the NASDAQ was at 6931, today it closed at 7057, a gain of 3.2%
On that date the S&P was at 2835, today it closed at 2720, a loss of 3.2%
When are you going to learn, I am never wrong about facts and numbers.
Stock Market Takes New Trump Trade War Threats In Stride
"Trade War Victims
The Trump trade war continues to create uncertainty.
Alcoa (AA) became the first prominent Q2 victim of what Sen. Ben Sasse, R-Neb., has called "kooky 18th century protectionism."
In a news release Wednesday, Alcoa reported that the company in the second quarter "incurred $15 million of costs for tariffs on imports from its foreign operations for U.S. sale. Alcoa's imports were primarily from Canada."
On Wednesday, Jean-Claude Juncker, European Commission president, will meet to discuss trade with Trump."
Hey, Maybe Alcoa could tell Canada to lift it's sanctions on our dairy products otherwise I'm buying from a local supplier. Isn't that how it is supposed to work? go for the cheaper price?
Worker productive is certainly relevant as it's a key component in determining the cost of goods. Over the last 40 years technology improvements have been a driving force behind increased worker productivity. For example steel mills in 1980 used 10 workers per ton of product. By 2010, only 1.5 workers were required.Most of the productivity gains were not due to better workers but better technology.Minimum wage increases have little or no long term positive effect. Raising minimum wage eventually pushes all wages higher and when wages go up without increases in productivity prices rise. So over the long run minimum wages do little to redistribute wealth or to increase personal income. I tend to think they have little long term impact on the economy.So what about the minimum wage argument; some of whom claim $15.00 per hour would be the solution to all our problems?
Wages that rise do to market demand spurred by increases in productivity benefits everyone, employee, employer, and consumers. However, wages that rise because shortages in workforce are not beneficial to society because the employer is hiring the bottom of barrel, marginal workers who are less productive.
What of the fact that productivity has increased greatly over the last 40 years while wages have remained flat?
1. I've never heard anything about that being relevant in the past.
2. And maybe most, but far from all, and still wages flat.
New technologies along with the flattening of the management structure have radically changed new job requirements particularly in manufacturing. Today, compared to 40 years ago, workers have more responsibilities and need more job skills. Where once a worker might have a single task on an assembly line with a half dozen other workers, today that worker is running the whole assembly line. Instead of only one assembly line there are 10 assembly lines. Instead of a half dozen bosses, there is only one, the production manager. That worker is also making more money, has a better chance of advancement but is likely to have a better education and training.
I won’t comment on productivity of auto workers in Germany vs the US because I don’t know enough to comment.1. Rising wages are good for the economy as long as they are associated with higher productivity. Having to hire less productive workers at higher wages is bad as I mentioned above. The key to achieving a better society is better education. American needs to be the world leader in education. We were in the mid 20th century which was a key component in our economic growth. However, other nations caught up with with us and some surpassed us.Higher wages when there is shortage of workers means the employer must hire marginal workers, those he would not normally consider as they are generally less productive. When an employer must spend more on wages and without a corresponding increases in productivity then prices rise. Once the shortage of labor is resolved these employees will find themselves out of a job again.Higher wages means more men being able to provide for their families, thus more families.
More families means more people with good, fulfilling lives, raising healthy and productive children.
More and wealthier families means less demand on social services.
more tax revenues.
less crime.
less drug use.
less illegitimacy (a nice reinforcing positive cycle there)
more money to spend on the more American products at the store.
It means a better society to live in.
If the cost is a slightly lower return on my mutual funds, I'm willing, no. I am EAGER to make that sacrifice.
As long as the number of open jobs are just a few million, employers will be able to find productive employees but when that figures goes to 20 or 30 million, then employers will be hiring low productivity workers and paying higher wages and will still have many millions of unfilled jobs. The result will be higher prices and lower quality and American will be unable to compete in foreign markets.
1. You did not at all address the positives of rising wages I listed above, nor offer any hint of your alternative to achieving a better society.
2. We are in and have been in for decades an artificial glut of labor, due to massive immigration, legal and illegal, and outsourcing. What we now consider a "shortage" could easily be a new normal of an American labor market dominated by AMERICAN LABOR.
3. We are not allowed to compete effectively now, for whatever reason as shown by our massive and ever growing trade deficits.
We have approximately four times the population of Germany, yet they produce twice as many cars as us, while their car manufacturing workers make twice as much.
German car workers are not twice as educated as ours, nor twice as productive.
I don't believe the evidence supports your claim that education is the answer.
And my list of the positives of higher wages, stands. It would be good for American society overall.
2. Over the last 4 years we have gone from a surplus in the labor market to a shortage of now over 6 million. With 19 million workers a day reaching 65 and the economy adding over 200,000 jobs a month, economists are projecting a 34 million employee shortage by 2024. Those new jobs are going to be filled by immigrants or they will go out the country. There is no other option.
Then let them go. America is more than just an economy. I would rather have a smaller nation, that is still America, than some bloated powerhouse that doesn't feel like home.
And I still want higher wages. We've accepted wage stagnation for far too long.
3. Our trade deficit is not do to our inability to compete. Our trade deficit is due to our high rate of spending (consumption). Our exports are increasing rapidly. Since 2008 our exports have increase 75%. However, for the same period our imports have matched those exports so our yearly trade deficit today is little different than it was 10 years ago.
The only way we are going to significant reduce our trade deficit is by spending less and saving more. That will decrease domestic consumption and will make more capital available for expansion of industry to produce more exports. However, we don't need to do that and we shouldn't because it will bring on a recession or an economic slow down. There is nothing wrong with a trade deficit as long as it is not growing rapidly the way it was between 1990 and 2010.
Your point about increased exports is interesting.
But it does not seem to explain the results we see in the real world.
If exports are up, why are wages flat?
How can German car workers make so much? Is it just a coincidence that they have a large trade surplus? I don't think so.
I totally disagree with your comments about the importance of education. Better education is vital to the economic growth of the nation because new jobs and those in future will require it. A manufacturing plant worker, who once spent his days loading raw materials into a production line, now runs the whole line with only one other worker. He makes adjustments to the machines, installs software updates runs diagnostic programs, schedules maintenance, prepares QC reports orders raw materials, and attends plant meetings. These were tasks that 40 years ago would be done by his boss or his boss’s boss.
American worker are among the most productive in the world because:
- They have more skills and can handle a variety of tasks.
- The technology is higher than most countries.
- Lastly, the American labor market is more flexible than most countries. Put simply, this means that companies can easily fire people, or switch more employees to part-time work instead of full-time, or make changes in employee responsibilities when market conditions require a change.
I'm all for higher wages as long as those wages are not paid to less productive workers.
A smaller America would not be the America you know. The American culture is solidly based on economic growth, not just bigger TV’s, faster computers, and the latest gizmos but a longer, healthier life, better opportunities for our kids. Just about every safety net from social security, personnel retirement plans, Medicare, college savings programs, and other social programs depend on economic growth of the country. A smaller America would mean the government would default on debt payments and the dollar would be worthless. America would rapidly become a 3rd world country where countries like China, Russia, and Germany would dominate.
Every company that does merit raises or bonuses are basing it on increased or decreased productivity of the worker.Worker productive is certainly relevant as it's a key component in determining the cost of goods. Over the last 40 years technology improvements have been a driving force behind increased worker productivity. For example steel mills in 1980 used 10 workers per ton of product. By 2010, only 1.5 workers were required.Most of the productivity gains were not due to better workers but better technology.Minimum wage increases have little or no long term positive effect. Raising minimum wage eventually pushes all wages higher and when wages go up without increases in productivity prices rise. So over the long run minimum wages do little to redistribute wealth or to increase personal income. I tend to think they have little long term impact on the economy.
Wages that rise do to market demand spurred by increases in productivity benefits everyone, employee, employer, and consumers. However, wages that rise because shortages in workforce are not beneficial to society because the employer is hiring the bottom of barrel, marginal workers who are less productive.
What of the fact that productivity has increased greatly over the last 40 years while wages have remained flat?
1. I've never heard anything about that being relevant in the past.
2. And maybe most, but far from all, and still wages flat.
New technologies along with the flattening of the management structure have radically changed new job requirements particularly in manufacturing. Today, compared to 40 years ago, workers have more responsibilities and need more job skills. Where once a worker might have a single task on an assembly line with a half dozen other workers, today that worker is running the whole assembly line. Instead of only one assembly line there are 10 assembly lines. Instead of a half dozen bosses, there is only one, the production manager. That worker is also making more money, has a better chance of advancement but is likely to have a better education and training.
1. No, I never heard of looking at worker contribution to increased productivity being used in the past to justify NOT raising wages. Not since the days of Carnegie anyways.
2. And maybe most, but far from all and the wages are still flat.
Every company that does merit raises or bonuses are basing it on increased or decreased productivity of the worker.Worker productive is certainly relevant as it's a key component in determining the cost of goods. Over the last 40 years technology improvements have been a driving force behind increased worker productivity. For example steel mills in 1980 used 10 workers per ton of product. By 2010, only 1.5 workers were required.Most of the productivity gains were not due to better workers but better technology.What of the fact that productivity has increased greatly over the last 40 years while wages have remained flat?
1. I've never heard anything about that being relevant in the past.
2. And maybe most, but far from all, and still wages flat.
New technologies along with the flattening of the management structure have radically changed new job requirements particularly in manufacturing. Today, compared to 40 years ago, workers have more responsibilities and need more job skills. Where once a worker might have a single task on an assembly line with a half dozen other workers, today that worker is running the whole assembly line. Instead of only one assembly line there are 10 assembly lines. Instead of a half dozen bosses, there is only one, the production manager. That worker is also making more money, has a better chance of advancement but is likely to have a better education and training.
1. No, I never heard of looking at worker contribution to increased productivity being used in the past to justify NOT raising wages. Not since the days of Carnegie anyways.
2. And maybe most, but far from all and the wages are still flat.
