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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
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Another Word on Labor's Plight

19 January 2013 | Pago Pago, American Samoa
Kimball Corson
Another Word on Labor's Plight

The idea that workers displaced by machines can go into other productive endeavors is an important one but diminishing marginal results attend the notion. We have played this card for decades and its utility is now wearing thin. That is what it means when the labor/population percentage drops as it has. We only need so many hamburger flippers.

The MIT economist authors of Race Against Machines argue the next wave of technology in the wings will result in 1) a huge net displacement of workers (labor/pop percentage to fall further and much), 2) a worsening in the skew in the income distribution, 3) a further drop in labor's share of income, and 4) permanently reduced aggregate demand with a new attending lower normal.

Aggregate demand has held up as long as it has because 1) government bought more ( two silly wars, etc.) and transferred buying power via the social safety net, and 2) consumers borrowed hugely to hold their standard of living (and are now saddled with too much debt). But now consumers are too much stuck with debt and stagnant or falling incomes and government is cutting back. The economy is too much stuck at a new lower normal.

We are not generating enough jobs to employ even the new entrants to the labor market, much less those displaced by the last recession. Median income has been falling and has been in trouble since the 1970's.

The hand-writing is on the wall. Another dot com, housing or other bogus boom can lift us for a bit, but booms have busts which usually hurt worse than the booms make us feel better. Too, policy makers are learning that and are inclined to meddle less. So expect fewer booms.

It seems that Marx got more correctly than we earlier thought. He may get the last laugh yet.
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Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
Extra:
Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
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Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ