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originally posted by: TheConstruKctionofLight
a reply to: Semicollegiate
Without inflation, money increases in value over time due to increased productivity and the increase in population (workers, producers and customers).
I could be wrong but money decreases in value as a result of more being printed to keep up with the chasing of goods, hence inflation. The consumption of goods and production do not form a linear graph but production first lags and then speeds up to match demand and then overstocks inventory resulting in layoffs or recession. Inflation will always be around due to Govts wanting to pay their debts with tomorrows cheaper $.
originally posted by: TonyS
a reply to: Blue_Jay33
Just to add to your comment which was spot on, even when the manufacturing jobs come back, the building of things like appliances is done by robots and robotic assembly lines. So........those human employed manufacturing jobs are never going to do anything but shrink.
BTW, I don't have an answer for this problem or the lousy paying service jobs either but we've got to believe that this is going to cause something in the way of an economic emergency in the future because who's going to buy the new appliances if they can't afford them? Even Henry Ford saw the necessity of paying his workers enough such that they could buy the product.
Nevertheless, the demagogues still argue that, even though high-paying service sector jobs have more than replaced lost factory jobs, “we don’t make things here anymore” and we should lament this. This oft-heard refrain is patently false. We don’t make certain things, such as garments, toys or electronics, because global free trade and technological advances tend to shift America’s output into those industries in which our comparative advantage is greatest. But Americans do indeed make things — quite valuable things.
This can be seen in Figure 2, which shows the US Industrial Production Index for the “de-industrialization” period. After the expected steep decline following the Great Recession of 2008–2009, US manufacturing has slowly bounced back and is now producing more products, in value-added terms, than ever before. Indeed, this index, which consists mainly of manufacturing, has grown by over 100 percent since the 1979 peak in manufacturing employment.