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I think society is now in a momentous transition ...
From the highly paid, well-compensated, unionized workforce that sustained the entire economy for decades ...
To a low pay, low volume LOCAL economy, with families buying little of the superfluous excess we are accustomed to seeing over the years ....
It's amazing how the investor-class and business owners make so much hay about wages and the cost of labor, without recognizing that high wages are what put the bulk of them in business to begin with ...
IF US workers made the same wages as those in India, China, Mexico, or elsewhere - Most of them would go bankrupt within weeks ...
Wages = Stimulus .... Low wages = poor stimulus ....
They can lower taxes all they want .... It wont stimulate the economy enough to keep most companies afloat ....
Deflation is coming .... It is unavoidable, I believe .... There is little wage base to sustain sales revenues and support current prices ....
A new economy will form around a population with less money and less buying power .... It could very well be that LOCAL economies will provide the greatest activity for most families .... But it is certain that those companies who have profited from middle class families will have to either retool for cheaper goods at lower volumes, or die ....
I worked in union shops for most of my career ..... I appreciated every red cent ....
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