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Americans Are Overpaid   November 11th, 2009
Redefining normal in the age of Obama       


More observations...

We've been told recently that higher levels of unemployment might be the "new normal." And now CNN is telling us that Americans are paid too much and should be paid less.

U.S. workers are overpaid, relative to equally productive foreigners doing the same work. If the global economy is ever to get back into balance, that gap needs to be closed...

A combination of moderate inflation to reduce real wages and a further drop in the dollar's real trade-weighted value might be an acceptable combination.

That's the opening paragraph of an article that basically argues that Americans are paid too much and suggests that higher inflation to erode the value of wages combined with a further weakened dollar would be "an acceptable combination."

Every day, it seems, I'm further left in awe by the idiocies being spewed either by the administration, the Democrat party, or what is effectively their propaganda arm in the liberal legacy media.

I'm not entirely surprised to see these kinds of conclusions starting to percolate in the media. All of the major policies that the administration is currently pursuing are going to result in increased unemployment, decreased wages, and a weaker dollar. The trick, of course, is trying to get American citizens to suspend common sense and believe that these are actually good things.

The article says these things are necessary "if the global economy is ever to get back into balance." Huh? What do they mean? That balance will be achieved by poorer countries being richer and rich countries, such as the US, being poorer?

If so, the entire opening paragraph is based on a false premise: There has never been a "balance." There have been rich countries and there have been poorer countries. While it's good to see poorer countries progressing, the suggestion that there ever was a balance is silly. There hasn't been. And if we want to see a "balance," that will be achieved by poorer countries becoming more productive and earning better wages--not by Americans settling for lower wages.

And, of course, any wealth and wage differential in the world had exactly zero to do with our current economic situation. It was caused by bad social policies that encouraged people to by homes they couldn't afford, by too much borrowing by individuals and governments, by exotic financial instruments whose inherent risk was not sufficiently respected, and by the Federal Reserve pursuing an "easy money" policy similar to the one that is being pursued now. It had nothing to do with any balance or imbalance between how much Americans earned compared to others.

This article is basically a socialistic fluff piece that is laying the groundwork for excuses of why unemployment won't go back to "normal levels." About why income isn't increasing. About why the dollar is getting ever weaker.

See, according to liberals, these are all good things.

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