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On cursory review, the startling fact about the above chart is that ALL wage earners have failed to participate in the "productivity" growth in the last 6 years (I really think that it is more about inflation than productivity), but even scarier, the wages of the college educated workers have flatlined. So, not only have these kids had to endure the scam of no reward for their hard work of study and loss of income while attending school, but also the cost of that education which has become a scam because of inflating these costs by "financing" them.

Teddy, you are so right. When I talk about things, I try to tie as many things together but this is one big bundle of non-joy. Yes, the destruction of wages has been ripping through the white collar middle class to the technician class but still has NOT reached the old timer economic professor class. Until those guys lose THEIR jobs, we won't hear NOTHING.

HAHAHA. I suspect, in 10 years, they will be replaced by Chinese economic professors lecturing about the history of communism in China.

A Merry Christmas, and a happy and prosperous 2008, to all!

- J. Smith

And a pompous, ooops....PROSPEROUS XMAS to you too, Mr. Grinch. Heh.

Elaine, I would imagine the H1B visa's would be contributing to the destruction of wages here, as it moves up to the white collar workers. Paul Craig Roberts had a good column on this, there is a media fed misconception that Americans are too stupid/lazy/whatever to do scientific and engineering work. He points out that wages in those fields have dropped or stagnated over the past ten years, obviously jobs don't have their pay drop if there is a shortage of workers with growing demand.

Interestingly, 1974, the year you cite as the beginning of American economic decline, was also the year the great equity bull market commenced. So, one could argue, going deeper and deeper into the red has been very good for equity prices and effectively has hidden the economic decline from most observers. Any thoughts as to when this paradox ends?

The equity thing is the 'last blossom of imperial goodies'. The baby boom plus the WWII winners created great demand for certain things. The imperial dollar made the bidding for all this easy.

The way this was paid for was via debt.

Deeper into the red.

Indeed.

Merry Christmas

Love always.

Merry Merry! And Happy Happy to all!

While we peer into into the prospect of the black void of tomorrow, let us take heart, for in reading these pages we are at the very least knowingly prepared for the worst. May our indomitable human spirit allow us to in our own ways work for change, while hoping for the best. We are not alone. Peace to all.

I only want the best for everyone. I have a happy story to tell today. Once lost, now found, a dog's Christmas present.

Merry xmas Elaine and all.

Thank you for your fascinating, thought provoking and extremely funny news service Elaine :) Happy festive season to you and yours; and to everyone here :)

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