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If we can have an increasing GDP while most of America experiences stagnation (as with the recent recovery) who's to say we can't have decreasing GDP coupled wi
by jhaglund 13y ago
If we can have an increasing GDP while most of America experiences stagnation (as with the recent recovery) who's to say we can't have decreasing GDP coupled with improving quality of life? (at least for a short period) As you point out, machines are doing far more of the work that workers once did.
Another policy of FDR's New Deal was the creation of the 8 hour day (many people still worked 12-14 hour days until then: http://en.wikipedia.org/wiki/Eight-hour_Day#United_States http://en.wikipedia.org/wiki/Eight-hour_Day#United_States). Perhaps reduced hours allowed more laborers to move into the workforce, and could be a more competitive and cheap way of supporting a broad middle class.
- yummyfajitas 13y agoMost of America has not experienced stagnation. They have experienced a consistent increase in employment compensation and a consistent increase in consumption. http://research.stlouisfed.org/fred2/series/ECICOM http://research.stlouisfed.org/fred2/series/ECICOM http://research.stlouisfed.org/fred2/graph/?g=qG0 http://research.stlouisfed.org/fred2/graph/?g=qG0 The only "stagnation" that has occurred has been a shift in compensation from taxable wages to untaxed non-wage benefits. The fundamental problem is that with a drop in labor we will have fewer goods and services. No matter how you slice it, that's a drop in (real, not necessarily nominal) consumption.
- jhaglund 13y agoWhat about this labor drop? http://research.stlouisfed.org/fred2/series/CIVPART?rid=50&soid=22 http://research.stlouisfed.org/fred2/series/CIVPART?rid=50&s...
- yummyfajitas 13y agoWhat about it?