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91439306
15,000 Watts of Bass Power
join:2002-10-16
New Milford, CT
| The Problem with a World Economy
This competition between living standards/wages is direct across rich & poor nations now because of the global nature of the economy of today.
In the past, we had a separatist economy, where much of US goods were consumed in the US and very little was imported.
Now that we are finding labor pools outside the US, this raises the interesting spectre of whether Americans have enjoyed an artificially-high level of lifestyle, which is destined to be equalized with the rest of the world in short order, or whether a double-standard lifestyle can exist in the same economic system across rich & poor nations engaged in commerce.
One thing that seems to happen is a certain amount of job loss. Those people are left to look for other employment; whether they find it is yet another pathway in this increasingly-complex economic model.
One thing is for certain, that if the tax demands of government do not scale with the new 'world income parity', there are going to be a lot of economic implosions and a rise in tax delinquency as persons used to living on $20,000 a year or more might have to learn to live on $1500 a year in a global market in order to remain competitive. Now let's say the average homeowner lives in a basic starter home with an annual tax burden of $5000. On a salary of $20,000, this burden is manageable. But on a salary of $1500, under the global parity, clearly that family would have to move to government-subsidized housing.
While goods all around would fall in price, the cost of government, historically, has never fallen in price. So I wonder how the global market parity of base salaries is going to pan out in the mid to long run.
Curiously enough, my wife and I just refinanced our SUV with E-Loan. We save $67/month over what Ford Credit was offering. The transaction was handled over the internet and by phone, papers were signed, they picked up the UPS overnight costs to ship the papers back to them and in a few days we received verification from Ford that they were paid in full. I was skeptical of doing an online loan, but this company has made the process easy and saved us a significant amount of money by lowering our interest rate.
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Mark & Mary Ann Weiss
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lakino
Premium
join:2003-04-03
Campbell, CA
| said by 91439306  :
This competition between living standards/wages is direct across rich & poor nations now because of the global nature of the economy of today.
In the past, we had a separatist economy, where much of US goods were consumed in the US and very little was imported.
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This is a great post! Very reasonable and non-judgemental. I agree with you 100%. It's going to be very interesting to see how the US and perhaps Europe/Japan keep their governments afloat as the international price of labor falls dramatically in the future. The government can't directly outsource--although they can contract out work to third party service providers or contractors--and they can't lower wages of their workers, so how will the governmental workers' wages be affected in the future? As the labor wages of private industry of industrialized nations fall--and as the developing nations' labor wages rise--what will indeed happen to governmental workers' wages? That's a fascinating point which I've never given much thought to.
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In an uncertain world, there is absolutely no security in banding together. -- Robert X. Cringely | |
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