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A Nonny Moose

Economic Woes Continue.

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Parliamentary Library Report.

 

Note that while salary and wages numbers may be rising, but they are not keeping up with inflation.  Probably the same in the Americas as well.

 

The more, more, more syndrome will eventually case a blowout in the economic machine.  When the price of labour goes up, so does everything else and usually higher than the former to allow for profit margins.

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  • Original Poster
  • Not true.  But if man was paid what his labour was really worth, prices would never have gone to where they are.

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    It's a natural consequence of economic stagnation. Supply of labor is constant in the short term and increasing in the long term (as population increases). But demand for labor rises and falls with the whims of various markets, innovations, etc. The law of supply and demand thus dictates that the going rate for labor performing a given task will rise and fall over time. Although it is complicated by other factors (unionization, laws, taxes, varying corporate philosophies) which will shift the balance point.

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  • And in this society, labour has managed to price itself out of the market to a large degree.  Don't blame outsourcing on management:  they see themselves as doing a good job for the shareholders.  The general cause of outsourcing is competition from cheaper labour markets.

     

    In circumstances where the standard of living is lower, wages tend to be more in line with what companies will pay for jobs.  That house with the three car garage you can no longer pay for after losing your cushy unionized job to outsourcing is your own fault.  Greed is fatal.

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    1. The government should provide more subsidized housing and encourage job growth. Subsidized housing does not need to mean free Mini-McMansions (as it sometimes means in some areas) but can include large condominiums/apartment complexes that provide basic, Spartan shelter at a rate far below market value (such as a token $1 a month).

    2. Unions have become unruly.

    3. A planned economy that prevents waste, fraud, and abuse in all sectors and encourages intelligent and responsible growth is vital to any meaningful economy.

    --Ocram

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    I'd like to see what this means in terms of income inequality. I'm quite confident that the highest wages are not decreasing. Ah, the English class society, gotta love it. (According to the CIA, UK Gini = 40, Belgian Gini = 28.)

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  • Original Poster
  • If you are an investor with a good advisor, you can try to arrange the growth in your portfolio value to be higher than inflation.  This is the only way you can beat the system, and that may not work for long.  All it takes is one blue-chip hiccup in the market to upset the apple cart.

     

    Self-directed plans are only good if you are an expert in the market.  And even at that, one little slip and blooie!  Betting at the track is more secure.

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