NYT writer says the chart Krugman produced to back up his story, doesnt do justice to what really is going on. Freeman Vancouver, WA 1 hour ago Its very difficult to extract any meaningful comparisons from this chart without first converting back to national GDP comparisons. Chinas middle class has been created by shifting capital investments to China from US and OECD nations, allowing China to triple their share of the worlds GDP from 4% to 12% since the year 2000. The middle management class in the OECD has suffered stagnation, but from a very much higher starting level. The working class in the OECD has suffered from loss of income and loss of wealth. So, the elite, i.e. rich, have benefited from transferring their labor expenses to robots and low cost workers (relative to domestic workers), and have avoided direct confrontation with regulatory agencies concerned with the health effects for the planet of coal driven economies. The drop in the US share of global GDP, down from 38% to 23%since 2000, is actually greater than the entire current share taken by China. From a business management point of view it looks straight forward. The OECD workers and mid-level managers are being driven by capital shifts to compete in a world market. Governments are being challenged by business to maintain the levels of social benefits provided as they benefit from open markets in a global economy. The CEO class, naturally, perceives this as a good thing and doesnt mind a bit that domestic labor is being challenged while they (the CEOs) sit in the catbird seat. Tariffs anyone?
Posted on: Fri, 02 Jan 2015 18:38:45 +0000
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