Friday, December 19, 2008
The Power Structure has spent the past fifty years diluting the labor pool, in order to lower wages. This has been done in two ways; (1) legal and illegal immigration of low-skill peoples and (2) elimination of tariffs. Tariffs have historically been around 30% until after WWII. Now they are neglibible.
The smart people may or may not have believed that this was sustainable. It is not. Without an industrial base, our system of entitlements cannot sustain itself. Less than seven percent of Americans now work in construction or manufacturing. Everything is theoretically built upon the foundation of this seven percent.
Our economic foundation continues to be eroded and the house is now shaking. Construction and manufacturing employment fell by over one percent last month alone. We got hit hard by the ice storm and lost a very large tree this week. This is fine by me since I can now have a bigger and brighter garden.
My guess is that the pension systems will begin to fall apart in the spring. Obama is really getting set up. I need to convince the wife about chickens.
p.s. My four-year old computer died and has just been replaced. When I try to publish a free picture I get this message:
•potato.jpg : Your image is corrupt or is in an unrecognized format.
So imagine a picture of a potato. I don’t know why this new computer cannot recognize free pictures.
Posted by Bill at 9:18 PM