It's sort of a conundrum that people, or at least some people, want more products made in the US, but are probably not willing to soak up the increased manufacturing costs. I'm old enough to remember the Carter Reagan years when we had double digit inflation and interest rates. And the subsequent recession when the fed used monetary policy to keep inflation in check.
A nice balance between the proletariat and the bourgeoisie seems appropriate. To produce wealth, you have to have a working class willing to sell their labor. Seems like cutting grass and shoveling snow demands higher wages these days. Who would have thunk it? That class of person doesn’t have stock investments, meaningful healthcare, much more than an old 70s model trailer to hole up in and an old F150 without a tailgate. He needs a hug and a bottle of Colt 45.
Im sure its the future. Tractors can be run remotely by gps now, when labor cost get to high will mowers and snowblowers be far behind. We’re already using fewer and fewer checkers at the store and fast food places. I don’t think higher wages will cause the trend to change.
But now we have very low unemployment so there are still plenty of jobs out there. So I guess wages can go up from here. I have no problem with that, whatever the market will bear. But company’s must make a profit and it has to come from somewhere. If wages go up so must prices. At least to maintain the same ROE.
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