On 17 Jan 2006 17:48:22 GMT, D Murphy wrote:

Cliff wrote in news:m66ps1dcughh8kkg9ufcmi0tbavqtkovqs@
4ax.com:

On 17 Jan 2006 05:11:23 GMT, D Murphy wrote:

We've lost far more plants to automation and productivity improvements
than to China.

I keep hearing about "productivity improvements" but then they
say the workers are paid far to much ..... and cut their benefits
or loot their retiremnt plans.
IF there were "productivity improvements" there should be MORE
$$ for the remaining employees, right?

No. The savings either go into lower prices

Which explains the rapidly rising retail prices.

or offset higher costs of
pensions, health insurance, and raw materials.

But all except the pensions would be "more productive" too,
right?
And the pensions would be more productive due to the rapidly
rising stock market ... Oops, that's a world market & it probably
actually fell (in real terms) due to the decline in the value of the
dollar ..

I get it now. The dollar is neocon inflated by those
wars, spending hikes, corporate welfare to special interests
& tax cuts, right?

Explain that one ....

Lower prices. Lower costs.

But retail prices are up .....

What makes you think that every company and all of their competitors would
sell at the same price no matter their true cost? There is no greater
competitive advantage than having the lowest cost. Let's say you are
shopping for a lathe and you find two brands that will suit your needs. The
lathes are identical in every way as are the companies selling them. Would
you buy the one that costs 25% more?

Is it from Europe, Japan, .... ?

The cost of pensions and health insurance has skyrocketed.

WHY?

Double digit
increases for something like a decade. Yet inflation has remained low for
at least that long.

I assume your wife does all the shopping.

Those costs are being offset by productivity increases.

WHERE?
--
Cliff