Posted on 07/21/2004 6:50:12 AM PDT by Max Combined
WASHINGTON - Federal Reserve Chairman Alan Greenspan told Congress on Tuesday that he is concerned about a growing concentration of income in the United States, adding that the educational system has not created enough skilled workers.
At the same time, Greenspan said the recent rise in inflation appears to be short-lived, while warning that the central bank will become more aggressive in increasing interest rates if stronger inflationary pressures persist. He said the recovery was sustainable despite a recent "soft patch" in June. He added that inflation figures had risen but attributed much of the rise to "transitory factors" like a spike in oil prices.
"Economic developments have become quite favorable in 2004," he said.
The Fed chief created something of a surprise by agreeing with Democratic campaign statements that there is a growing gap in wages based on skill levels, with upper-income households benefiting more than any other group from the economic recovery.
(Excerpt) Read more at chron.com ...
1. People tend to forget that the US has the most stable and well developed legal and financial infrastructure system in the world. One might dismiss its importance, but for anyone who has ever tried to invest, purchase, trade, etc, in a foreign market (even Canada), you'd be in for a BIG surprise.
Things we take for granted, like property title insurance, escrow, legally enforceable contracts, etc. are not dunk shots elsewhere. The reason we do have a finely developed system is because the US was built on capitalism, and capitalism needs the rule of law to thrive.
People elsewhere know this - it's why everyone who is anyone tries to get here, and bring what money (if any) with them.
2. This leads to the cost of housing in Calif. Apparently, while everyone seems to focus on illegals driving down wages (true), no one is noticing that legal Asian immigrants are rapidly expanding in Calif.
The big difference is (a) they are usually educated, (b) they work hard, and (c) they bring money with them. Half the reason prices have skyrocketed in SoCal is because of Asian money.
Add 1+2 together and what do you get? More educated, hardworking people with money wanting to move to the US means higher productivity and higher housing costs.
Combine it with illegal immigration and low unskilled wages, and we have the makings of a two-tier system. However, it ain't businessmen and laborers, it's Asians and Hispanics.
When your sons' wives start looking for their satisfactions , I'm sure your families erstwhile management of money and such will not cause your own sons packages to be so slight before their wives eyes -- in comparison to the Merchant Bankers, I mean.
Your sons', their own *financial* packages would be elephantine too? I mean that is all possible in fiat money.
Do they now? And where did that money come from?
I don't know about others, but there is no shortage of idiots doing the type of work I'm doing and getting paid as well if not better. I would agree, however, that our universities didn't provide them with much skill.
"Why they've grafted onto themselves elephantine packages using our children's nest eggs."
That sounds painful.
They make good money by renting out money, usually other people's money. Buy low and sell high is the traditional prescription for making money and that is what they do, only in their case it is pay a low rent for the money they take and charge a high rent for the money they rent out and pocket the difference.
I don't have any sons, but my daughter is going to Rice, majoring in Chemical Engineering, so she probably will not starve, especially here in Houston.
If she wants to get an MBA and go into banking, that would be OK by me. I am against any grafting, however, as I want her to keep her nice, natural, girlish figure.
Clipping coins?
There's a reason America is the big dog - it is and will remain so for a very long time.
While I'm on that topic, where does all the money sent to Arabia for oil go? It comes right back here (or some of the major European banks). Then, when they withdraw their funds for expenditures, who is the money paid to? Foreign companies/workers (Haliburton, Bechtel, et al) who build and maintain their infrastructure.
You see, when you're the big dog, you get a cut of everyone's action. They can't go anywhere without going through us. Which, of course, is what's driving world-wide Anti-Americanism; they're merely defeated socialists shaking their puny fists as the Colossus spreads capitalism everywhere through a system of our own making.
Say what you want, but you'll never say that protectionism will lead to anything but the same, either.
Clearly, the only option we have in order to avoid a two-tier society is to insist that the government intervene in the markets. Where have I heard that before?
So yes, the dollars come back -- returned with malice.
When the Rubicon was crossed, not long after did Rome go into a very long stall and de-accelerations -- yet with that crossing Rome made its choice and all the levers and gears and valves of reality locked in against it.
This nation built the worlds largest economy be implementing policies (tariffs) that benefited the country and the people. Labor laws allowed unions to organize and collective bargain. This policy allowed the working class to accumulate wealth and become consumers of the products they made. Anti-trust laws to break up monopolies that killed competition, innovation and small business. This policy insured that all the wealth of an industry (say oil) would not end up in the hands of a single family. Tariffs which rightly collected payment from foreign companies seeking access to the American market. These payments funded a great deal of the federal government WITHOUT INCOME TAXES.
You are a communist.
a level playing field for foreign labor, immigration, and trade - is a legitimate function of government. its not "intervention" in the free market.
"with upper-income households benefiting more than any other group from the economic recovery"
Definition = Educated, hard working, creative, Entrepreneurial type people are moving ahead. The horror and shame of it all!
Yet when the President suggests that when kids are getting a bad education, they be given vouchers, it gets shot down by the rats. It's sickening how many people are enslaved by that party.
C'mon . . . what 'cha really got? [sic]
Very nice. And the government should intervene to enforce this "level playing field" of yours? [chuckle]
they created it.
who creates immigration policies? work visas policies? trade agreements? the government does.
this mythical free market you embrace, doesn't exist.
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