[quote]Gael wrote:
orion wrote:
ephrem wrote:
…so what? That does not change the fact that they are providing cheap labor that benefit our lifestyles. Look, people will always look for the best, read cheapest, deal…
…for instance, europe has been overrun by polish workers for years now. They work cheap and work hard, but guess what, in Poland Georgians do the work the poles won’t do because they earn more abroad than at home…
…however you want to spin this, and i do feel you just like to antagonise for the sake of discussion, the West relies on cheap labor…
I simply question your view of reality and that you want to uphold it even though it flies in the face of facts and logic.
Again, free markets do not need “cheap” labor they need profitable and that means “productive” labor.
Of course I will going to use cheap lobar if that brings production prices down, but the way capitalism deals with this problem is by accumulating capital, meaning machines and train the workers how to use them.
Then, the cost of the average produced unit drops, but the workers earn more, not less, the entrepreneur earns more, not less, and the consumer pays less, not more.
That is not just a theory but a historical fact that you can clearly see in workers incomes over the last 200 years.
What about over the last 35? Average wages peaked in 1973 in the US.[/quote]
From what I have seen that happened more around 1981 but I get your point.
Three things:
A) Obviously your trade deficit is ever increasing, so at least your relative productivity most be dropping.
Either your productivity drops, or stays the same or simply does not grow as fast as others.
B) It is really hard to tell because US government statistics are lying their asses of, they under report inflation and blow up productivity increases.
Obviously they can´t be right, because if your economy was becoming more more productive at a record pace , why are you losing market share?
C) There is of course the fact that new investments go to India and China, that might even draw off capital from the US and thereby lower wages.
That only shows that the US is a pretty small country that is very well off compared to the rest of the world.
The link between rising productivity and wages is still there, the productivity simply rises elsewhere.