the effort is worth praising. the problem is it won’t make a bit of a difference.
we still ultimately have the most fundamental issue at hand: 3rd world countries having cheaper labor and looser regulation compared to the US.
maybe some recession and weakened dollar isn’t so bad afterall. maybe lowered wages in America isn’t such a bad thing.
lower wage and weaker dollar tip the trade balance in our favor. we can actually make stuff again and be profitable and competitive.
perhaps we inflated our wages to the point that we priced ourselves out of the labor market completely. lower our wages and suddenly we are competitive again. Wow, what a concept.
unfortunately recessions are necessary, a developed economy grow at pace with its population growth. if it accelerate above that pace than it is doing it by hyperinflating its wage. which drive it out of business.
we have huge run ups on the up side of bubbles, but we artificially cut short the downside, the result is the unsustainable increase that price us out of the world labor market.
here’s an analogy: my kid decides to eat 20 dumplings (made in LA!) at lunch time. she then compensate for her greediness by not wanting to have any dinner. upside and downside, evened out.
but let’s say we still force her to eat a full dinner. overtime she would be obese and become less competitive on the play yard.
