Many people from Wall Street think inflation is now the biggest threat to the U.S. economy. In Brooklyn many more than Wall Steet's rather think the biggest threat is falling into another recession.
Who is right?
Meanwhile the most significant economic news from the first quarter of 2011 is the decline in real wages.
In fact, millions of Americans, in order to keep their jobs, are accepting lower wages.
What do you get like this?
The only thing you get is consumers who can't buy enough to keep the economy going.
Why doesn't Wall Street get it?
But when most people's wages are dropping, additional dollars they spend at marketplace means fewer dollars left in their pockets to spend in the rest of the economy too.
Fed's easy money policies are making things even worse. The biggest irony is that investors are doing very well right now.
In fact, Corporate profits for the first quarter of the year are really way up that's because corporate payrolls are going down on the contrary. Wages are down because big companies have mostly moved overseas where to make business is cheaper.
The Commerce Departement recently reported that over the last decade American multinationals eleminated 2.9 millions American jobs adding 2.4 millions abroad. Corporations are finding new ways to cut the pay of their remaining U.S wokers by automating their work or sending it to non-union states.
Every single American has paid to save bankers and Wall Street brokers' golden asses. Now these same forgiven and wealthier members of the society are asking to cut pubblic spending and reduce the money supply.
Will we ever see anyone caring for our poor asses?
By the way, Taiwanese Apple iPhone maker Foxconn is considering Brazil move for tariff considerations and being closer to emerging market. Even China seems to be not cheap enough.
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The Auschwitz nazi sign, “Work makes you free,” hung in the streets of Rome |
see also,
Make it in America by Andrew Liveris
Work will make you free
Capitalism at its finest
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