by slimboyfat 85 Replies latest social current
Demand does not equal jobs in an age when most things are made with little ( or less and less ) human intervention every day.
Productivity is up largely because of the increased automation in almost every sector. This increase in automation required capital -- "rich folks" who have stocks.
Uhhh no.
Are you kidding me? There is still a ton of stuff that is made with lots of human intervention. Only problem is all those jobs are shipped to places like Indonesia and China because "job creators" aren't interested in creating jobs in America.
Uhhhh.... what? seriously? I would like to understand why my point is "no worthy"...
Didnt you hear... the number one manufacturer of Apple products Foxconn is investing in robotic assembly lines like never before. So today there are millions of Chinese workers inserting electronic components into circuit boards, but tomorrow they will be out of work.
By the way (sorry for multiple posts)... I dont think it's "fair" that the US is outsourcing these jobs to thrid world countries... It's not a level playing field - but that's another argument.
This stuff is all interconnected in ways even economists have a difficult time understanding and continually argue over.
Some rich people don't create jobs and contribute virtually nothing to society.
Some rich people hurt society by simply leeching money off the top.
Some rich people do directly create jobs and contribute much to society in terms of fostering innovation and philanthropy.
Some rich people do indirectly create jobs by providing financing to businesses and individuals with innovative ideas who could not otherwise overcome the barriers to market entry without their help.
Rich people will always have an advantage over everyone else because of the exponential compound interest function. That's ok until we reach the second half of the chessboard.
Some rich people pay nothing in taxes.
Some rich people pay OVER 100% in taxes.
Some rich people worked very, very hard for their money.
Some rich people inherited their money, or otherwise did nothing to earn it.
Some poor people who could work, don't want to, or have no incentive to, and hurt society by leeching money from entitlements.
Some poor people work full-time, and still don't make a living wage.
Some poor people are penalized for taking on a second job, or trying to better themselves, or get a promotion, because then they lose entitlements and tax breaks, and actually make less.
The middle class consistently seems to get the short end of the stick.
US corporations have among the highest marginal tax rates in the world.
US corporations have among the lowest effective tax rates in the world.
US taxes are portrayed as progressive. When all taxes and tax breaks are taken into account, they are flat for the poor, progressive for the middle class, and regressive for most of the rich. This further exacerbates the compound interest dilemma.
By allowing companies to pay less than a living wage, and then subsidizing the poor with entitlements because they don't make a living wage, we indirectly transfer wealth from individual taxpayers to corporations. (Individual taxes make the bulk of US income, not corporate taxes.)
If we required US corporations to pay a living wage, most wouldn't be able to compete in a global economy without transferring even more jobs overseas.
US consumers demand more competition and lower prices. For all of our talk, virtually no one would pay 50% more for an all US made product of equal quality.
US consumer demand for lower prices created the need for US companies to go overseas to compete. What started out as a way to stretch our paychecks has resulted in shrinking our paychecks.
US workers continue to be the most productive in the world. This productivity is split between lower prices and higher profits, but not in increased worker wages since the 1970's.
Historically, a significant percentage of the world's population has lived in poverty, a small percentage has been extravagantly wealthy, and most people just get by.
For all of our technological advances, I don't think that will change anytime soon. Society just hides it a little better with $5 Wal-Mart clothes and $1 ramen noodles instead of rags and gruel. You can be dirt poor and half-starving and still look respectable nowadays with a $20 wardrobe from Wal-Mart.
Non-rich people create jobs to become rich.
I know a few self employed people who ended up creating jobs and employ people because of demand for their services. NONE of them are rich (as in filty rich)...because none of them are greedy. They pay their workers fairly...and don't have share holders to worry about. Many are quite happy with how their businesses are going.
Not everyone has the mighty dollar as their number one priority in life. Some people care more about people than profit...I know its a strange concept to some..but its true. It does exist.
Small and medium sized businesses contribute much to the economy...via employment and GDP
http://www.parliament.nz/en-NZ/ParlSupport/ResearchPapers/d/8/1/d813612035774864a779a2f00feebb66.htm
US consumers demand more competition and lower prices
Mainly because wages do not keep up with inflation. If people could AFFORD to pay more...they probably would if they knew that paying that bit extra would help to keep others employed because of their demand for their product or service. It depends on your situation and your priortities.
I am now paying higher prices for locally grown and made products. Because it is my priority to support OUR economy. But I know that when my budget has been much more limited...I have been forced to hunt for cheaper food and products. I couldn't afford do live any differently.
Higher wages DO contribute to the economy. And educating the public about buying locally is VERY imporatant. Millions of dollars are spent on advertising by companies that want to promote their cheap goods that are made overseas using cheap labour. Not so much is spent promoting buying locally made and why it is important.
US consumer demand for lower prices created the need for US companies to go overseas to compete
Paying shareholders profits created the need for companies to go overseas. Cheap labour...higher profits...happier shareholders.
