Reply #17: Clarification please [View All]

[kcwayne]

What is NE?

Also, to the question asked about the effect of employment (or severe lack of it), it seems that as significant numbers people are pushed out of the job market or into lower paying jobs that the money flow is being centralized into asset values of corporations as they reap greater profits from lower labor costs. At least this is true in the short term.

But if this trajectory is maintained, buying power falls off and corporations have a shrunken market, unless somehow those $100 a month laborers in China find enough spare cash to start buying something besides food and clothing, which I doubt will happen in my lifetime ( but I hope I am wrong on this).

If corporations are currently re-investing their accelerated profits, there seems to be no sign they are doing it here. There are signs they are investing in China and India. So the game seems to be to position your company to be able to survive in the short term by selling into what will be a declining US market, and use the cash to position for a future growth in the Asian marketplace (including India). Companies will need fewer and fewer people to manage their business in the US, causing more unemployment, and more business failures for service companies that survive by servicing US based facilities of these larger corporations.

Given this, I don't see how the economy in the US can improve, short of some fundamental paradigm changes that creates significant demand for products or services that cannot be more cost effectively provided offshore.