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Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: The great divide||Date: 9/8/2013 9:12 AM|
|Author: rubberthinking||Number: 433393 of 514359|
That TED talk was a summary, quite right. And it was well done.
She limited herself in one quickly made statement that no economic laws exist to reverse out the trend.
She also missed most of the point. We have $2.8 trillion in manufacturing production in the US alone. That is our yearly output roughly. Of course it is highly automated. The point is the rest of our what $13 trillion economy as of 2012 or $10 trillion is in the service sector.
Most people therefore need to work in the service sector. The tax based has been shifted to the service sector and away from major manufactures simply by shifting the tax based from federal to local somewhat over the last forty years. Property taxes have risen during the entire period. While the income tax rates for the upper brackets or factory owners have seen tax cuts and effective corporate tax rates have been on the lower side.
Bottom line we need to achieve livable wages for all service sector workers. If from the bottom up we have livable wages people above them in the service sectors would become much better off savers and consumers.
The supply side dogma has destroyed a great deal of wealth as she points out, but at the same time the country can brag having more wealth. This is reality has hurt most Americans.
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