Wednesday, April 25, 2007

Is it really good news when the Dow breaks 13,000?

Once upon a time, this may have been news of interest to the average American. Today, I doubt there are very many barber shops across the country that this is going to come up in as a topic of discussion.

If America still had the manufacturing infrastructure that it possessed 20 or 30 years ago, I could see this as cause for celebration. But as I'm seeing a lot more layoffs and plant closings (usually to relocate overseas where the employment is cheaper) I have to wonder how much of this "profit" is coming at a cost to the middle class. Curious, that it seems there is a correlation between the number of workers who lose their jobs in this country to how their respective former companies seem to only gain financially.

A robust economy cannot be long sustained when its foundation is primarily service industry.

Among the things that are ruining the United States economically are rising debt brought on by easy credit, and the delusion that we can have employment that is both good and cheap. That last one has driven too many companies to either relocate their manufacturing overseas, or to hire illegals at lower wages.

Eventually, the lust for more material goods and the lack of a strong domestic (and legal) workforce are going to collide. And it won't be pretty when they do... even if the Dow were to reach fifteen or twenty thousand along the way.