An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Monday, February 17, 2014
"Working Man - 60 sec"
Surprise ending:
"Seems to me I could live my life, a lot better than I think I am....."
I saw this on TV. Walmart's been running several of these kinds of ads boasting about how they are going to buy American now. They can pat themeselves on the back, I guess, for keeping wages so low that America has become a "low cost" producer. In addition, national economic policy that has exports as a goal. Again, low wages, weak currency, etc.
I don't know if the Walmart Manufacturing summits being held in the US and Vietnam instead of China and Mexico are a stunt or a serious pitch. They don't really have a choice, though do they? Wages are rising much faster in China and Mexico than the United States. Once shipping is included, Iowa and Missippi look cheaper, especially, for the bulkier energy intensive items than second or third tier cities in China when you count lodging, energy, bonuses, food, and the double digit wage increases expected annually. Their daily salary in second or third tier cities works out to about $20-30 where in the US it is only double that. So we are close to the tipping point, when shipping, energy costs, low inflation and currency could together make US labor cheaper. Corruption is bad in China, but can't be worse than most of the midwest or east coast where you can't get anything done without paying off most of the local politicians and building and safety inspectors.
I thought the Germans wanted to be the export slaves.
Our currency is artificially low and will remain so if everyone thinks that we can manufacture our way out of this.
What kind of comfort are we to have?
We are supposedly energy independent, but since the dollar denominates the oil a strong dollar policy would get us more for our money earned and spent.
I saw this on TV. Walmart's been running several of these kinds of ads boasting about how they are going to buy American now. They can pat themeselves on the back, I guess, for keeping wages so low that America has become a "low cost" producer. In addition, national economic policy that has exports as a goal. Again, low wages, weak currency, etc.
ReplyDeleteI don't know if the Walmart Manufacturing summits being held in the US and Vietnam instead of China and Mexico are a stunt or a serious pitch. They don't really have a choice, though do they? Wages are rising much faster in China and Mexico than the United States. Once shipping is included, Iowa and Missippi look cheaper, especially, for the bulkier energy intensive items than second or third tier cities in China when you count lodging, energy, bonuses, food, and the double digit wage increases expected annually. Their daily salary in second or third tier cities works out to about $20-30 where in the US it is only double that. So we are close to the tipping point, when shipping, energy costs, low inflation and currency could together make US labor cheaper. Corruption is bad in China, but can't be worse than most of the midwest or east coast where you can't get anything done without paying off most of the local politicians and building and safety inspectors.
ReplyDeleteI thought the Germans wanted to be the export slaves.
ReplyDeleteOur currency is artificially low and will remain so if everyone thinks that we can manufacture our way out of this.
What kind of comfort are we to have?
We are supposedly energy independent, but since the dollar denominates the oil a strong dollar policy would get us more for our money earned and spent.
OK one thing to feel upbeat as a youngster again, BUT do not forget the ayn rand bs connection.
ReplyDeleteThe whole album is conceptual.... seems to me works need to rise above Black Flag...