tag:blogger.com,1999:blog-7774179765567947305.post6839959056594018876..comments2024-02-15T06:28:06.790-08:00Comments on Subprime JD: Poor Economic Data Shakes Wall StreetSubprimehttp://www.blogger.com/profile/00010296774091296670noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7774179765567947305.post-29220871980086115192011-06-02T10:54:35.113-07:002011-06-02T10:54:35.113-07:00Lee,
This is a difficult concept to grasp but her...Lee,<br /><br />This is a difficult concept to grasp but here is my understanding:<br /><br />Technological advances are good for human society. Take the ATM machine for example. Before we had to use more bank tellers, now we have the machine. The overall costs for all of society are lower because the expenses of the ATM machine are lower than the payroll of the human teller. Thus, all of us have to pay less of our wages (labor) in exchange for retrieving money out of the bank. Basically, falling prices are GOOD for society. Cell phones and computers are another example of falling prices benefiting society. We all give less of our labor in exchange for a computer or phone. <br /><br />The problem arises when we have falling prices due to productivity which clashes with our monetary system which requires higher prices, due to increasing amounts of debt. Productivity and technology advances our society with lower prices or less of our labor in exchange for the good or service, while our debt based system requires higher prices (or more labor) in order to sustain itself. I hope this makes sense to you. <br /><br />If we lived in a world where money was not created out of debt, then we would have a world of falling prices. With continuously falling prices, our labor (translated into wages) would afford us with stronger purchasing power. It's just that we have all been brainwashed with the idea that slowly rising prices are a good thing. Not true at all, at least based on my research and understanding of life.Subprimehttps://www.blogger.com/profile/00010296774091296670noreply@blogger.comtag:blogger.com,1999:blog-7774179765567947305.post-70410255543086760422011-06-02T09:13:01.931-07:002011-06-02T09:13:01.931-07:00Great points, Subprime! - there doesn't appear...Great points, Subprime! - there doesn't appear to be many options left in toolkit.<br /><br />I'm not sure I follow the outsourcing article, though. He appears to be making some point about the tragedy of the commmons rather than outsourcing. <br /><br />Outsourcing is just a small component of the problem - the real problem is the devaluation of labor. Technology is a much bigger impact than outsourcing. To the extent that outsourcing was limited, you would see more technology deployed as machines are cheaper than jobs. <br /><br />Despite all the talk of everything being made in China, manufacturing employment is actually falling in China. If that doesn't tell you about the rise of the machines, nothing will.<br /><br />Not sure what the answer to all of this is...leenoreply@blogger.com