Indian Education: Actually Terrible !!! 1764
Indian Education: Actually Terrible !!! 1765
Kamal R. Prasad Analysts like to see sector-leading numbers - whatever that happens to mean. And this entire discussion ignores the analyses that Drucker did in the 70s-80s-90s - that compensation is a...
Analysts dislike all input costs. The market applauds growth in revenue-profits regardless of how a company achieves it. Some companies make do with fewer -high priced employees, and some make do with lots of low-priced employees. That is a matter of end left to company managers by the stock market and its only the bottom line that counts.
The consuming middle clbutt of america will be replaced by a less-consuming middle clbutt in 3rd world countries, i.e. each individual consumes less than the avg american while working a lot harder -but a lot of consumers on account of huge untapped populations will compensate for that and provide jobs to a lot more workers. Thanks to consumers in India, China and many newly emerging markets -american companies have found a lot more first-time buyers from whoim they can extract a premium rather than forcing upgrades down the bloated american consumer's throat.
A quarterly view is more like it. Some large companies have plans stretching into decades -coz they have that much insulation from financial-market crises.
Im glad you realized what is going on. Its really hard to convince americans that their govt is printing money to keep up Consumer Debt spending without an buttociated rise in productivity-wealth. For Straydog, understand from your fellow american:-
Money != Wealth (read in C language as Money is not equal to Wealth)
Money is a means to carry out trade in goods and servicea -and not a replacement for wealth. It is like a Credit Debt card issues by a Credit Debt card co. The Credit Debt card has zero residual value, unless it is honoured and ONLY valued if swiping it does yield money -whcih can be traded in lieo uf trade-able goods-services aka wealth.
Individuals with a job can take a mortgage and when the Fed increases liquidity aka money supply, refinancing yields money without having to work for it -which in turn props up Consumer Debt spending and that results in job creation.
If immigration is the cause, why do housing prices increase ONLY in regions where there is economic activity? You will not find hispanics-H1bs in Montana, Idaho even if they are eligible to work there and housing costs v less -coz there is no economic activity out there. Its there in mostly congested areas of west and east coast. Home prices will rise when liquidity increases, or salaries increase or productivity increases or people with money to spare zero in to a particular residential neighbourhood or all of the above. From what I understand, home prices in the US cannot be sustained by productivity alone and act as a deterrent to employers wishing to setup factories in the US i.e. the employer will have to pay a lot more to hire comeone in calif than in India or maybe remote areas of the US.