Loading ...The story makes sense, but in my view it was “game over” was back in 2008. Long game, spread paper money “prosperity” around the world, from 1913 to 2008.
The author FORGOT to mention the DEFLATION in labor costs that started after 1975 as the USA used foreign labor instead of domestic, for the global greater good.
It took its toll by 2008, when low paid taxpayer borrowers could no longer afford to pay down 105% leverage on real estate buys. That they were encouraged to do.
Holding down unskilled labor costs, unwittingly holds down SKILLED labor costs also. Which leads to no savings accounts, no down payments, and lower interest rates to accommodate low wages, low tax receipts, big deficits etc.
I have not yet seen even one financial writer, writing about a deflation in labor costs, and or a lack of maintaining with cost of living inflation, the minimum wage and Social Security payments. Why? Are they all fake news connected, and I’m not? Or they don’t remember anything?
Note also the gov’t/business media saying they are puzzled that the high demand for labor is not pushing up wages??? See how full of crapola they are?
No business man wants to or is going to pay, any more than they HAVE to pay. For rent, for electric, taxes etc. They DON’T have to pay the REAL cost of what a laborer costs to live in the area they do business.
In reality, the local gov’ts/businesses should for their own good, represent all non union labor prices. “If your business is not lucrative enough to pay all expenses, rent electric labor costs, then you can’t be in that business at taxpayer expense for increased poverty.”
Is what the business community needs to be told. But the business community has been telling the representatives what THEY want. Usually, they want, CHEAPER THAN NORMAL COSTS for LABOR and MATERIALS.