Easy answer.
First we voluntarily slash rents or the sale price of our homes and a lot of other things by 90%.
Then American workers can afford to slash their salaries by 90%.
Then we can compete.
Simple.
Easy answer.
First we voluntarily slash rents or the sale price of our homes and a lot of other things by 90%.
Then American workers can afford to slash their salaries by 90%.
Then we can compete.
Simple.
Of course, the slashing of rents, home prices, and other things need not be voluntary. It would likely be forced by the market.
In any case, I would have liked to hear the article address this issue at greater length. Whatever happens, it's very difficult to compete with someone whose cost of living is a fraction of yours. There will be a great deal of pressure on costs of living to equalize. On page 4, the article does say the following:
For the U.S. the loss of technology leadership could be historic. Without that advantage, there would be little to prevent living standards in the world’s interconnected economies from equilibrating. The rest of the world’s living standards would rise, and—at least in the near term—America’s would decline.
First we voluntarily slash rents or the sale price of our homes and a lot of other things by 90%.
Then American workers can afford to slash their salaries by 90%.
Then we can compete.
Simple.
Bullshit. All of it.
American businesses would be competitive with our current standard of living (and I argue...would actually improve immensely) if we:
Slash government taxes on corporations. Abolish Unions. Abolish %80 of environmental regulations. Abolish %80 of personal income taxes delegated to entitlements. Abolish %80 of government regulations and intrusiveness on healthcare. Slash taxes on pension funds. Slash %99.9 of the BS that produces frivolous lawsuits.
There, I feel better.