The long run plan,

[MadHound]

For decades, corporations have complained that labor costs in this country are too high. In fact, fitting actions to words, corporations have shipped our manufacturing sector overseas, with the help of the Federal government, for the sheer simple reason that overseas they could pay labor pennies on the dollar that they had to pay labor in this country.

But still, we hear the ongoing complaint that labor is too high. To remedy this, corporations bring in immigrants, both legal and illegal, to break the back of labor in industries such as construction, or bring in H1-B visa recipients to replace high paid, highly skilled labor.

But apparently labor costs are still too high for corporations, so the assault continues. Hammering on labor in areas such as teachers, and the public sector in general. Privatizing as many public functions as possible in order to drive down labor costs, hell, even lawyers are finding much of their work outsourced.

But I believe that there is an even more insidious plan for bringing down labor costs in this country. Since wages can't be lowered, costs are going to be driven up, with no commiserate wage hikes.

This is being achieved in a number of ways. The Fed is finishing up its second round of "quantitative easing" of the national debt, ie, letting the printing presses run. When you let the printing presses run, you weaken the dollar and raise inflation. Though Bernanke has stated that there are no immediate plans for another round of "quantitative easing", he is keeping his mind open to the possibility in the near future.

Furthermore, we're seeing price hikes across the board, from food and oil to clothing and shelter, prices on the rise. For the first three months, the first quarter of 2011, inflation has risen at an annualized rate of 5.6%, and this doesn't look to be coming down anytime soon.

I believe that this is the plan for effectively lowering the labor costs in this country. Jack up inflation, weaken the value of the dollar, and hold wages at the same rate. This effectively, insidiously lowers the costs of labor. And sadly, I don't think that this will reach an end point until our wage scale is on par with China's, and the rest of Asia's wage scale.

Welcome to our brave new world.

[MadHound]

1. Kick

Anybody interested in this?

[Renew Deal]

2. are the words birth certificate in that post somewhere?

No?

Try again in 2-3 days as long as there's no new circumcision, breast feeding or smoking news. :D

[MadHound]

3. Too late to edit and put birth certificate in the title,

Good point though, bright shiny object distraction at its best.

[Renew Deal]

4. Kick

:kick:

You may have better luck today.