[opendtv] Re: TV Prices Fall, Squeezing Most Makers and Sellers

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 29 Dec 2011 04:39:23 -0500

Mike Tsinberg wrote:

 

> Unfortunately the "high standard" of living is only for the

> fully employed. The standard of living for 10%+ (20% by some

> estimates) of unemployed now for more than 3 years is only

> going down. These 10%+ cannot find work because most of

> commodities are manufactured in China and sold here in such

> a way that we cannot compete

 

True enough, but I think you might be conflating multiple different events. The 
high unemployment is a relatively recent phenomenon, precipitated more by the 
housing bubble bursting (as it predictably was going to do) than by Chinese 
labor. Manufacturing jobs had been exported for several decades, when 
unemployment in the US was often at or below 5 percent. So the sudden high 
unemployment, starting in 2008, cannot be attributed to China alone.

 

The housing bubble had me panicked, but everyone around me seemed giddy with 
excitement. There was too much fake wealth tied up in real estate. No economy 
can stand real estate assessments growing by 25 to 30 percent per year, for 
some 5 years running, without a major catstrophe coming on. And that was caused 
by a combination of an overabundance of personal greed, shady practices by 
lending institutions, and inane government policies (guaranteeing loans they 
had no business guaranteeing).

 

Many economists believe that what creates an improving standard of living is 
productivity that grows steadily, like 2 to 2 1/2 percent per year. So to 
achieve that productivity growth, companies do things like automating 
production chains and finding cheaper labor. Ideally, the people not needed for 
old jobs would be put to better use creating whole new market segments. This 
is, after all, what has been happening ever since the Industrial Revolution.

 

I think that now that the real estate market has been restored to probably 
saner levels, if government policies quit threatening businesses with way 
higher costs coming up in the next few years, businesses will start hiring 
again.

 

Bert

                                           
 
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:

- Using the UNSUBSCRIBE command in your user configuration settings at 
FreeLists.org 

- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word 
unsubscribe in the subject line.

Other related posts: