Back on December 29 the Wall Street Journal carried an interesting article about the Chinese goverment raising workers wages to quell unrest over rising food and fuel prices.
While their wages have gone up, most Americans have gone down. The only real exceptios have been the Wall Street fat cats whose bonuses have rising substanially. And how is it that a so called "socoilist" government allows $141 Billion in bonuses? What sort of socialism is that?
Americanworker income has declined by 1 Trillion dollars and estimate made by Challnge Magazine economists writing about the ecenomic models of the down turn. They point out that in a consumer drivin economy, where 70% of ecnomic growth rests on consumption-ecomic growth is unlikey to occur until wages rise again. This is tottally different from jobs, and job growth.
A job at $7.50 and hour and $23.00 an hour are two differnt things. One provides basic income; the other provide for disposable income. And the emphasis ought to be to focus on discretionary incme above food,shelter and necessities.
Descetionary income drives the consumer economy. And until disretionary incme rises, the ecoemy is not going to come back no matter how many jobs are created. And that's one of the basic weaknesses of President Obama's proposals to date. And his Republicanfriends proposals are even worse, because they are all premised on the race to the bottom-the so called low cost factor model.
A race to the bootom economy is unlikey to stimulate discrtionary spending; in fact, it's likey to do the opposite-stop consumer spending all together. Ina 70% consumer economy this smells like a sure loser.
It's not about jobs; it's about the kind of jobs that drive economic growth.
Niether partyhas a strategy for that.