"Wages are sticky downward": American car workers are still trying to fight gravity, i.e. globalization's effect on wage rates. Denninger think that if it's anything more than a bargaining ploy, it will finish most of the US car industry.
And after them? Who else could have their work outsourced? White-collar workers should not look on unconcerned. Save money while you can, while wages are still ahead of minimum spending requirements.
Meanwhile, up in the clouds, a hedge fund manager has (allegedly) admitted his business was a fraud, losing $50 billion; more than three times the car-makers' bailout fund currently under discussion.
6 comments:
Blimey, these news items are coming in thick and fast ! When the waters recede, you find out where the wrecks are
Who else could have their work outsourced?
Who couldn't ? when you boil it down, in principle the answer is just about 'the utilities' (I hate to say it, Sackers, but even education, up to a point ...) Also, as noted before, shipping rates for dry bulk cargos have fallen to almost nothing, so importing stuff is a cinch
we had all better learn how to add some serious value (or devise one of Mr Madoff's schemes ... that name - it must be satire, mustn't it ? please ?)
February will see the artificial jobs disappear and then the picture will be clearer.
The £ has depreciated by 30%. Problem solved. Britain is the new low wage economy.
Nick - can't wait for ed to be outsourced, may try to come up with something myself.
James - what's a real job?
Anon - good point. But when the dollar collapses? We're into Relativity Theory as applied to currencies.
I worked with the distance learning believers. Actual education doesn't come without a teacher in the room.
And, if the idiots try (as they have tried to reduce faculty at the universities), exactly where will any research take place?
I am broadly with you, Paddington, but it may not stop them trying
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