Tuesday, January 20, 2004

The internet is a place to rant and rave...so I decided to a little bit of ranting about the job figures on CrassCommerical.com.

IMHO, The main problem we have with our economy is in distributing the productivity gains of the information age the populace at large. The problem is that the majority of people have no assets beyond their physical presence...their labor. The profits from products of the productivity gains will show up on the ledger as more cash for the richest in society and fewer jobs. The really absurd thing is that the economy is distributing gains by thrashing with stock booms and busts.

Governments high taxes and regulation of jobs prevent salaries from being a means to distribute gains.

Think of it for a second. Taxes discourage the activity taxed. Placing an excessive tax burden on wages means the government wants to discourage wages.

The only way our current economy has for distributing productivity gains to the people is through lowered prices and more leisure.

This leads to a political crisis. The US has a 7 trillion dollar debt, and has a slew of entitlement programs that spend trillions each year. Lowered prices and more leisure time means that the government will get less money to cover its obligations. It is a difficult situation to resolve.

No comments: