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Competition with low-cost workers in China, India, Eastern Europe, and the rest of the developing world may finally be taking its toll on American workers. With a surplus of labor around the world, real wages will stagnate, while returns to capital will rise.

Someone gets it.
1 posted on 08/10/2006 5:06:37 PM PDT by hedgetrimmer
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To: BenLurkin; Rockitz; A. Pole; dennisw; Paul Ross

FYI


2 posted on 08/10/2006 5:07:30 PM PDT by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: hedgetrimmer
Someone gets it.

Almost. He left out "Illegal Alien."
3 posted on 08/10/2006 5:08:06 PM PDT by Darteaus94025
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To: hedgetrimmer
For middle-class Americans aged 50 and higher, the math may be much different, since they likely own their own homes, which have greatly appreciated.

So what happens when those 50+ homeowners start trying to sell their homes to the younger low-wage workers without capital?

4 posted on 08/10/2006 5:11:56 PM PDT by TexasKamaAina
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To: hedgetrimmer

Yes, returns to capital are rising. Perhaps it is not a good idea to rely on wages for all of your income?

Stock dividends taxed at low rates look good to me.


5 posted on 08/10/2006 5:13:57 PM PDT by proxy_user
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To: hedgetrimmer

The upper classes and the owners of capital have figured out ways to get a greater piece of the economic pie. Workers and wage slaves get a smaller piece than 10-20-30-40 years ago


7 posted on 08/10/2006 5:17:40 PM PDT by dennisw (Confucius say man who go through turnstile sideways going to Bangkok)
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To: hedgetrimmer
"The Mystery of Low Wage Growth"

No mystery here,mate.
Millions of illegals aliens that are ever ready to work for the lowest wages will do that to lower skilled hourly workers every time.
And there's plenty more illegals where that came from.
8 posted on 08/10/2006 5:18:07 PM PDT by Jameison
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To: hedgetrimmer

Which is better Low wage growth or Inflation.?


9 posted on 08/10/2006 5:18:42 PM PDT by sgtbono2002 (The fourth estate is a fifth column.)
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To: hedgetrimmer; Toddsterpatriot; 1rudeboy; expat_panama; nopardons
Someone gets it.

Oh, he gets it all right. By avoiding the increases in total compensation he gets to bash the Bush economy and push the left agenda that Business Week has become famous for.

Employers are picking up more and more of the rapidly increasing cost of healthcare. When included, total compensation shows an increase over the rate of inflation.


10 posted on 08/10/2006 5:19:24 PM PDT by Mase
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To: hedgetrimmer
The problem with this analysis is that it does not incorporate non-cash earnings, which have soared, and continue to soar in REAL dollars.

I get a 3% annual raise---but what my employer shells out for my health care, on an annual basis, has increased about 15%. If you TAXED all health care benefits, you'd see American workers' wages shoot up . . . but their real purchasing power would likely drop some.

11 posted on 08/10/2006 5:20:11 PM PDT by LS
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To: hedgetrimmer
The author of this article missed a very important point.

I read an article a few years ago that tried to correlate wage rates for U.S. workers with various different factors that might influence it -- including things like basic intelligence, education, race, family background, etc. What they found was pretty interesting. By a wide margin, the factor that correlated most closely to wage rates was a worker's ability to read, write, and speak English.

I suspect that one of the biggest problems today is that a person's formal education is becoming increasingly unreliable as a measure for prospective employers to use when making hiring decisions. I can tell you from firsthand experience that the quality of college graduates has declined considerably over the years.

14 posted on 08/10/2006 5:25:45 PM PDT by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: hedgetrimmer

Well, when my husband gets his yearly compensation report (i.e. what kind of raise he's getting), the compensation package always includes other things that we don't actually see in his paycheck, like insurance coverage (health and life), retirement plan, etc.

IMHO, in some white collar jobs, the actual "pay" has not increased as much because the companies cost of the "perks" has risen, insurance, being the main thing that has eaten away at rising salaries.


18 posted on 08/10/2006 5:30:12 PM PDT by dawn53
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To: hedgetrimmer

As a Carpenter, my job hasn't been outsourced. I took a 14.6% salary increase last year and now inflation, fuel costs and taxes have zeroed that out. :-(


19 posted on 08/10/2006 5:30:48 PM PDT by Normal4me
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To: hedgetrimmer

No, he doesn't. Hes just shares your own blinkered, wrong agenda.


23 posted on 08/10/2006 5:36:24 PM PDT by nopardons
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To: hedgetrimmer

Maybe they are stupid.


31 posted on 08/10/2006 5:58:01 PM PDT by MonroeDNA (Soros is a communist goon, controlled by communist goons.)
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To: hedgetrimmer
What bothers me about wages is a lot of factory have switch from giving out bonus each week or month based on productive to having a piece rate for wages. This way the employer can pay the employee the same amount of wages for the the same amount of productivity. Or he can more often pay the employee less wages for the same amount of productivity.

First thing the factory does is come out with a new piece rate, based on something like 100man hours. They have a few department use it and make sure the departments make good money, After that the rest of the departments will want to get on board, after everybodies on board you add more people(Temp and low wage earners with no benefits) and the wages per hour drops like a rock. You always make sure at least one department is making good money, but in reality you've cut almost everybodies wages big time. The net result is most workers will keep working for you attempting to make that elusive good money, some will quiet, but the main reason the ones that keep working are the ones working for the health insurance. It's basically a big shell game.

32 posted on 08/10/2006 6:02:16 PM PDT by ReformedBeckite
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To: hedgetrimmer

US CPI excluding food and energy 2.6% in June.

Wage growth 3.8%.

= Real Wage growth 1.2%

US Productivity Index 1.1%

= No mystery, just sloppy business reporting.


35 posted on 08/10/2006 6:13:52 PM PDT by JustDoItAlways
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To: hedgetrimmer

....and competition from workers who sneaked in from Mexico.


38 posted on 08/10/2006 6:36:40 PM PDT by expatpat
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To: Willie Green; Wolfie; ex-snook; Jhoffa_; FITZ; arete; FreedomPoster; Red Jones; Pyro7480; ...
Perhaps the oddest and most depressing fact about the U.S. economy these days is the lack of real wage growth. The unemployment rate has been below 5% since December, and productivity growth is still looking strong. Yet wages and salaries, adjusted for inflation, are down for virtually every broad occupational category.

Time of the general prosperity in USA was based on mass consumption. Reducing the wages for the average people might lead to the contraction of economy as the demand for the luxury goods and for the servants cannot propel real growth.

Also the cheap labor is an enemy of technological progress as the millenniums of human history has demonstrated.

41 posted on 08/10/2006 7:35:04 PM PDT by A. Pole (Carly Fiorina: "Technology will 'disappear' in 25 years")
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To: hedgetrimmer
Competition with low-cost workers in China, India, Eastern Europe, and the rest of the developing world may finally be taking its toll on American workers.

Boy, what a shock. Don't tell the free traders. They think exporting all of our jobs to slave labor markets is awesome.
43 posted on 08/10/2006 8:33:39 PM PDT by mysterio
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To: hedgetrimmer; A. Pole; ReformedBeckite
Reformed, the banking/mortgage industry always seems to insure that they're on the perfumed side of the stick. One can see this by their lobbying efforts enabling then to cut sweet deals for illegal aliens while we citizens continue being put through the torture rack trying to get approvals. Some are apparently more equal than others and that some aren't even loyal to this country.

Cheap labor is an enemy of technological progress as the millenniums of human history has demonstrated.

A.Pole; you know more than anyone that our entire economy has been unbalanced from a production model based on quality to a service-based one dependent on promissory notes (mostly to China). All I hope for is that the Reds find, like Japan during the early 1990s, that they can't collect on what they can ruin.

Hedge, the current environment of wage slaves "benefiting the economy" wouldn't be sustainable without the totally unfair and unasked for onus of our government forcing us to finance their health and welfare needs while putting up with the very real risks of diseases and the criminal culture that follows them.

As the corruption is sinking deep right now I say it's time for outright obnoxious outrage, holding Reps feet to the fire and shouting the enablers down while regarding every accusation of "racism" as a merit badge of patriotism. Our disregard of their smears is the worst thing we can do to them - ridicule back on them is like water on the the Wicked Witch of the West.

62 posted on 08/10/2006 9:45:34 PM PDT by NewRomeTacitus
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