Great Depression II
Most economists tell us that another great depression cannot possibly happen in America. They say that 'modern' state-of-the-art Government will be able to save us from this deadly downward spiral through interest rate reductions and tax relief. However, powerful counter forces are at work. American wages, adjusted for inflation, have been in decline since 1997. The economic principal of Globalization will not accept an America where our workers take home ever fatter paychecks relative to the rest of the world. The ultimate capitalistic goal of Globalization is to bring all wages in line with the lowest common denominator worldwide. The playing field has traditionally been tilted in America's favor, but that is changing rapidly.
A nation that started out with high wages that now steadily descend while its productivity is steadily on the increase is a nation in peril of slipping into depression. America currently fits this description. Real wages have been falling for almost a decade while productivity has steadily improved to an all time high. We are now producing the greatest amount of goods and services ever seen per man-hour worked. Yet the American worker has not reaped any financial benefit of her awesome productivity. The only so-called improvement in our standard of living has come from steadily cheaper goods from China. Falling wages and ever decreasing prices could mean that depression is in our future.
I don't believe that America's standard of living should be measured through Wal-Mart inventory availability and smiley faced "roll-back" pricing. I want American productivity gains to translate into higher wages for Born in America workers. Only through higher real wages can our standard of living truly improve. With higher real wages comes the personal freedom of choice to buy what you want, when and from where you want. Wal-Mart's Chinese inventory should not define the state of American happiness. What's in your wallet? Less real money.