First off, I truly appreciate your tone in our discussion. No smart alec comments or schoolyard insults. I have enjoyed the exchange. My hat is tipped to you, sir.
I do agree that the unions of the old days have gone the way of the dinosaur. Unions like companies must adapt to the global economy to survive. The GM link I provided earlier is a good example of how unions MUST operate to survive. If they keep fighting for the status quo, they will be left behind. They days of demanding the sky are over. Having said that, I still feel that when workers have a sense of input, they will be more productive.
As to stagnant wages, interest rates aren't the only consideration. Prices are rising while wages are stagnant. I am no class warfare proponent, but one can't deny the ever widening wage gap. This will eventually haunt the top wage earners. When workers' disposable income is reduced, they can't purchase the goods that company's produce. The top earners are making more and more while the middle class is floundering. Eventually, this will hit the top earners as well through the inability to sell their products due to lack of middle class purchasing power.
There are many facets to the problem, but I will just attempt to address the disposable income issue and I don't claim to be an expert on that. It seems upside down in a way, but it is imperitive to increase purchasing power. Eventually, goods will wind up in warehouses and cost large sums of money to the owners or production will be cut further or halted altogether if things continue as is. This is not in the interest of management or labor. Both will suffer. This is the paradox I see with outsourcing. Most of the outsourced products will be shipped to the US to be sold. The problem is that without jobs that produce disposable income, the products can't be purchased. I don't care how much management can save on labor costs. If the product isn't sold in the intended market, it is a net loss for management. We have lost a good portion of our manufacturing base. I very well could be wrong, but I really have a hard time believing that the US can sustain our place as a wealthy nation based off of mainly a service economy not based on tangible assets. It's late and I am exhausted. I hope this made at least a little sense.
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