This has always been a subject very interresting to myself, as an ecconomics student. We are moving to a service industry, but those services will soon only be direct sales to each other, or supporting those direct sales. With the fall of communism and the other socialist nations of Europe unable to expand their industries, we are at the point where many nations have realized that capitalism is indeed the best system for ecconomic governance. This is cuppled with the increasing demands on wallstreet to make more profits even at the expense of their business name. It used to be that companies would become a part of the community and at that time it served their interrests (people from the community would buy their products simply because it was in the community). No longer does it serve their interrests to do so, public companies only see themselves accountable to their shareholders (and only to the degree where it increases the perks the board and governers of the company now expect). The second part is the wallmart of america, Wallmart tossed out the old notions of brand leader, price leader, and quality leader, and showed that being the price leader was king in retail.
We are also at the point where many are now retiring and are taking themselves out of the labor market to live off what they've made their entire life. With fixed incomes and all the time in the world at their disposal they now spend that time looking for the best "deals". With the job market weak and the threat of outsourcing around the corner companies can afford to skimp on the payments of their workers and they do this to meet the demands placed on them, price, price, and price.
As we see more people retire the pricing demand will become stronger as more people have the time to look for the best bargins.
In effect we can look forward to lower incomes and (likely) higher taxes to support those who have retired, in effect possibly reducing our own chances to retire.
Don't forget social security - soon to be three workers for every retiree...
"Here MonroeDNA, have cookie, now please the adults here are trying to carry on a converstation. " This has always been a subject very interresting to myself, as an ecconomics student." We are moving to a service industry,..."
Who is "we," besides econ students and union buffoons? The "we" that I hang out with create wealth, by innovation. "We" laugh at acedemics, knowing that you will never contribute wealth to society, because you simply are not capable of getting yourselves out of academia, and working for someone.
" but those services will soon only be direct sales to each other,
(According to keynes)
"or supporting those direct sales. With the fall of communism and the other socialist nations of Europe unable to expand their industries, we are at the point where many nations have realized that capitalism is indeed the best system for ecconomic governance. "
Correct.
"This is cuppled with the increasing demands on wallstreet to make more profits even at the expense of their business name. It used to be that companies would become a part of the community and at that time it served their interrests (people from the community would buy their products simply because it was in the community). No longer does it serve their interrests to do so, public companies only see themselves accountable to their shareholders (and only to the degree where it increases the perks the board and governers of the company now expect). "
My 401k makes me a shareholder. I am very happy with the companies I invested in. If they are accountable to any one but me, a shareholder, we will fire them, plain and simple. The purpose of business is to make money. For me, the shareholder (owner). Any problems with that?
"The second part is the wallmart of america, Wallmart tossed out the old notions of brand leader, price leader, and quality leader, and showed that being the price leader was king in retail.
So? We pay $10 for tennis shoes. Should we do away with them, and pay more?
" We are also at the point where many are now retiring and are taking themselves out of the labor market to live off what they've made their entire life. With fixed incomes and all the time in the world at their disposal they now spend that time looking for the best "deals". With the job market weak and the threat of outsourcing around the corner companies can afford to skimp on the payments of their workers and they do this to meet the demands placed on them, price, price, and price. As we see more people retire the pricing demand will become stronger as more people have the time to look for the best bargins. "
Correct. So?
"In effect we can look forward to lower incomes and (likely) higher taxes to support those who have retired, in effect possibly reducing our own chances to retire.
That came from nowhere, and is not supported by by your acedemic arguement. Then again, you are an econ student in today's college climate.