Thoughts On “Household Income Falls, Poverty Rate Rises”
February 21, 2012 1:40 pm Computers and TechnologyGDP adjusted for inflation is still near record high…yet so is unemployment. Apparently a lot of the labor force was not needed. What kind of growth in GDP would be required to significantly reduce unemployment???
We have a major structural problem with our economy.
In recent years we (western society) have made major productivity gains; however, these have mostly (or solely) been due to technology guides improvements. So…you have people creating and advancing technology and you have technology reducing the number of people traditionally needed in past production….well, those on the bottom who are not contributing to the technology are being less and less needed, economically.
They basically become pure consumers with no value to the economy. This was feared during the advent of the industrial age when laborers feared their labor would be displaced by machines. This labor force was adapted to other jobs but we have come to a point in technological evolution where those people can no longer serve an economic purpose .
Spending and consumption surges will only serve as a bubble.
