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> US workers can't pay other US workers. That is just logically false. It's not even a question of measurement, it is false by definition. The income paid to p
by rsj_hn 5y ago
> US workers can't pay other US workers.
That is just logically false. It's not even a question of measurement, it is false by definition. The income paid to produce is by definition always sufficient to purchase the output that has been produced. But remember that income paid to the factors of production includes both labor and capital income, because both the owners of capital and the suppliers of labor purchase the products that are created by the combining of labor and capital to produce output.
What is unsustainable is running persistent trade deficits overseas. E.g. by allowing foreign capital inflows, we have allowed the foreign sector to distort prices in an unsustainable manner.
- R0b0t1 5y agoThe buyer of US labor is the government and capital. Taxes on all US economic activity and coffers filled with worldwide profits are what purchases comparatively expensive US labor. This is why, e.g., most people can not afford new housing construction -- excess money has been dumped into it from the stimulus, driving costs up. Similar things have happened on a longer timescale for IT and engineering. Take what I said with some restrictions, like "US workers can't afford skilled or semiskilled US labor" which is afaict true. I work in production automation, life sciences, and software; my hobby projects in these area are unfortunately quite expensive due to US labor costs. As much as possible I must avoid using US labor if I want to get anything done.