Originally Posted by ERD50
I suspect that this will all come into balance over the years. Overseas wages will rise, ours will lower, and hopefully with good infrastructure and other things in place here, our productivity will be high enough so that wages remain relatively high. But who knows?
Yes. The trick will be maintaining the underlying economic system that will allow our economy to have a productivity edge once the dust settles. If we can keep/regain a lean, market-based economy (not just for goods and services, but the "inputs" of labor and capital as well) and
keep/improve our information infrastructure, physical infrastructure, and labor-pool skills (education) at world-class levels, then we'll be fine in the long term. But, if growing economic uncertainty and belt-tightening causes us to cry for more "protection" from the tough medicine of foreign competition and the laws of supply/demand (more govt assistance payments, higher govt spending, more centralized planning, restrictive legislation, etc) , then we won't be in a position to compete and we'll be in a well-earned very tough spot.