Quote:
Originally Posted by Ralph Sir Edward
The US has some of the highest nominal wages in the world. For the last 10 years, the leading large scale employers have been increasing their profits by labor substitution, i. e. substituting lower paid workers elsewhere in the world for higher paid US workers, and eliminating the higher paid workers from the payroll. This pattern will continue until there is no longer a profit, in using substitution, i.e. everyone is working for a "world wage". For the parts of the world where the labor is being gained, the trend is locally inflationary, in the place where the labor is being lost, it is locally deflationary. The US has been coping with this problem with inflationary money policy and strong propaganda that this isn't really happening in the local economy. In a macro sense, it can be nothing but propaganda, because if the all the displaced worker got better jobs (sic) then the cost to the economy of labor substitution would be negative, and the people doing the substitution would be losing money by the act. (To fully explain would take several pages, I'm trying to keep this short.)
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Bravo. You are the first person I've ever met that understood this.