Monday, November 25, 2013

This Economy is Top Heavy

Could it be fact that the attempts by the worlds central banks to lower interest rates, weaken their home currencies, and print money only provides more supply into the supply chain, making production cheaper, and CAUSES deflation.

Low interest rates only cause inflation if the consumers can use the money to bid up prices. And labor has no power due to the attack on unions for 40 years.

And the consumers are the ones who have a job. And business is about increasing the profit margin by the use of labor saving devices. Robots, software, and as a last resort actual cheap labor. Whether in S. Carolina or in India.

The inflation that almost took ahold in 2006 did not have a chance because by that time the consumer debt was way too large.

The workers need a raise.

How about a single payer health care system in this country. Let the central bank give the money to the govt. to pay for it until the economy picks up. That puts money into the base of the economy.

Then we make the workweek 32 hours. 20% more workers needed. Business must pay out the money they previously spent on healthcare into wages. Money into the base of the economy.

And finally, some protectionist policies in this country. Let's make things we use HERE.

We can pay some higher prices if needed because we are working. And the workers that have been set free from the bondage of healthcare can look for work in something they actually excel at, instead of keeping a "job" that they don't like. That is workforce flexibility.

Just thinkin'


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