Quote:
Originally Posted by Costaexpress
Is supply and demand a form of warfare?
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Yes it is. I like to think about foot ball. It is ritualized combat. The rules don't favor one side above the other. Offence has it somewhat easier than defense so that we can have fun watching the game. But a lot of the rules are there so that the players don't get hurt.
Supply and demand needs that same kinds of rules for the same purpose. We need to encourage economic productivity over wastefulness. We need to make sure that the players don't get hurt.
Take Greece for example they currently have 27% unemployment. They are being punished for borrowing to much money. But who is punishing the other side for lending too much money? Those debts are bad, and so they suffer an economic loss. But a more functional plan for repaying the debts would put everyone to work and have everyone be less stressed fanatically.
The economy is currently out of whack. It needs some adjusting. What kind of adjusting and what kind of out of balance is open for debate.
What I think the problem is, is too much debt and not enough income. Adding income should fix the problem. Not everyone sees this. More are starting to but not enough. Unions and management have played the game as opponents rather than partners.
The simple truth is this The more you pay your workers the more they buy.
So unions have increased the wealth of the nation by getting money from where it is nonproductive and to where it is productive. Wages are a reward for being productive. The top would rather loan you the money than pay you wages as they think they can get their money back with interest if they do.
But the real way to get their money back with interest is to pay wages. That is productive rather then non productive. By moving jobs from a high labor market to a low one they have side stepped the effectiveness of unions. Unions need to follow the jobs and fight for higher wages in the new market.
China thinks that Unions are treason. So we need a different game plan to play there.
Wages get sustainable consumption. Debt driven consumption is long term unsustainable.
We have blown a debt bubble from 1981 on
http://www.bearishnews.com/wp-conten...l-debt-gdp.jpg The substitution of debt for wages is trading a reduction in future consumption for an increase in present consumption. Well the future is here and consumption is off. And it will be off until we get our debts down or our wages up. Inflation in wages or writing off debts as bad. Make them good or forgive them. Take your pick.