Posted on 11/12/2009 1:45:56 PM PST by JoeProBono
U.S. workers are overpaid, relative to equally productive foreigners doing the same work. If the global economy is ever to get back into balance, that gap needs to be closed. Of course, U.S. workers should earn more than their peers in China, Moldova, or Vietnam.
The Americans take advantage of the higher productivity that makes their country rich: better education and infrastructure, abundant capital and a more developed work ethic. But how much higher should U.S. wages be? The answer depends in large part on two measures: the difference in productivity in making goods that can be traded across borders, and the quantity of such tradable goods. Both measures point to a narrowing wage gap. There are so many factors working to push up productivity in poor countries.
Fast development, cheap capital, and more efficient shipping all help make foreign factories more competitive. Cheap global communication through the Internet reduces all sorts of costs and makes it easy to trade many more goods and especially services.
The global wage gap has been narrowing, but recent U.S. labor market statistics suggest the adjustment has not gone far enough.....
(Excerpt) Read more at money.cnn.com ...
NWO
Ping
I wonder how many Americans have voted with their feet?
“Many of you are well enough off that ... the tax cuts may have helped you. We’re saying that for America to get back on track, we’re probably going to cut that short and not give it to you. We’re going to take things away from you on behalf of the common good.” ~ Hillary Clinton
Cue crickets
...you too could be an auto company owner, paid for life.
Shhh, don’t tell my boss. He’s always apologetic and trying to find ways to squeeze more money out of the HR turnip.
Eritrians pay far too little for housing.
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BULLCRAP ,, a gallon of milk is not $10 in NYC , and I subsidize that $2.75 subway ride to the tune of $10 in gas tax I pay everytime you get onboard.
$10 gas tax every time i get on the subway? $2.75 subway ride? i thought it was $2.25?
i forget how much they charge now since NYC cops ride the subways for free.
and besides, my tax rate is significantly higher than most cities. but i'm not complaining.
Until the passage of the 16th Amendment (Income tax) in 1909, the Federal government was primarily funded though tariffs. High tariffs in the 1800’s allowed the US to build its great industrial economy.
Manufacturing allows wages sufficient to develop a strong middle class. We need to return to manufacturing the goods we consume inside this country. Globalization has been a disaster for the middle class and the US economy. Real wages have not increased in 10 years. Stock prices have not increase in 10 years. Time to change our tax and regulatory policies to encourage US manufacturing. This includes an end to “free trade” policies that benefit our competitors. Reimpose the tariffs and quotas in place before 1988.
Americans are overpaid
... is a bit simplistic and it seems is meant to be controversial.
The problem is that the world is awash in unskilled labor, there is an essentially unlimited supply of labor where the cost near zero. People in 3rd world countries are still willing to work for $2 / day or less. The US labor market, with our relatively high cost, has a very difficult time competing with this. Hence outsourcing.
Our skilled labor however is very productive and is paid fairly IMHO.
If we want more high paying jobs, we need to focus on reducing the cost of doing business in the US, and this means overhead costs like litigation, regulation, taxes, medical etc. The biggest driver of this cost is an out of control government, primarily Federal, but at all levels.
If a healthy dose of free market ideas with a sane immigration policy is implemented our economy will take off. These ideas, where government loses control, will take years and many elections to implement. This entrenched power of the government statists will not give up with out a fight. It may take blood to make it happen.
schu
Really. I worked 9 hour days, five days a week in a lumberyard Humping 6x6 16 foot beams and loading 80 lbs sacks of concrete. The guys I work with must walk about 5 miles a day because the yard is large.
Americans workers bust their asses only to have half of the pay they sweated for taken in taxes. And someone has the balls to say we are overpaid. Look to those fatcats in the beltway if one wants to see a bunch of overpaid, underworked group of thieves.
Right now, I’d just settle for getting paid. Over, under, makes no difference to me.
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