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Wednesday, 29 June 2011

LOWER WAGES EQUAL HIGHER DOLLAR VALUE/PURCHASING POWER--STRIKES, HIGH WAGES EQUAL LOW DOLLAR VALUE/PURCHASING POWER, INFLATION.

HIGH PROFIT MARGIN, HIGH WAGES ARE NOT INDICATIVE OF A HEALTHY GROWING ECONOMY.
AIRLINES STRIKE
CANADA POST STRIKE
TEACHER'S STRIKE
UNION STRIKES=
THE UNENDING SPIRAL OF
NOTHING GAINED,
THE HIGH COST OF HIGH WAGES IS PASSED ON TO THE CONSUMER,
THE CONSEQUENTIAL HIGH COST OF CANADIAN PRODUCTS ARE PUSHING CANADA OUT OF THE WORLD MARKET--
THE CANADIAN PRODUCER LOSES.
THE CANADIAN CONSUMER LOSES
THE CANADIAN ECONOMY LOSES.
=
HIGH PROFIT MARGIN BUT NO SALES.
HIGH WAGES BUT NO DOLLAR VALUE/BUYING POWER.
Cost of living up,
Food Costs up 4%,
Price of Gasoline up,
=
 HIGH INFLATION. 
YES WE HAVE OUR HIGH WAGES;
BUT, OUR DOLLAR IS WORTH NOTHING, IN OUR OWN COUNTRY
=
Taxation, among the highest in the world. Automatic,Yearly, or Even Monthly, Price Increases,
 Greed and High Wages, Not a High Dollar, Lead to Inflation,  Economic Depression and Disaster.
I recently watched the most honest, realistic, and thought provoking movie ever. The movie--State of the Union, with Katherine Hepburn and Spencer Tracy, 1948-- is undoubtedly one of the best ever produced anywhere, especially in Hollywood.


In the movie, Spencer Tracy is quoted "High wages mean higher prices. High prices today mean recession tomorrow. Recession tomorrow leads to depression. The truly wealthy nation is the one with the highest currency value, the highest production, and the lowest hourly wage". 
That country is China. Because of excessive exploitation, excessive flamboyance, excessive greed, excessive inflation, EXCESSIVE EXCESSIVE, the "American dream has failed and the United 
States is a dying nation".

A strong dollar has never hurt anyone or any economy and-- especially NOT EXPORTERS. But, the advantages of such MUST be carried through with; and used to advantage. On the other hand, high inflation and utter stupidity has and does.

High inflation and utter stupidity hurt everyone and everything. If our dollar is not worth any thing--then neither are the products we produce for what ever price nor are the wages we earn. A million, a billion, a trillion times nothing still amounts to nothing. Still, we keep demanding higher and higher wages, creating higher and higher inflation. 

On the other hand, with a strong dollar, the costs of producing expert items goes down--after all all exporters are also importers--fuel, raw materials, power--with a strong dollar  all of these these items SHOULD cost less. Should, that is, if the strong dollar is actually recognized by countries such as the USA. One should always remember--many "Canadian" corporations are USA owned and controlled.

According to all logic, with a high Canadian dollar, we are able to sell a product for what it is actually worth and that other countries and people can afford to pay. Because the revenue coming in has more purchasing power, the actual value will be higher or at the very least remain the same. Above all, we  do not have to resort to deception and fraud, in order to justify a grossly inflated price.

 Greed will be reduced--hopefully.

 Wages can be much lower, because the dollar buys more. Lower wages again mean lower production costs. Again, therefore, we can sell our products at a lower price and still have the same profit value. I repeat, at the lower price-(which only a strong dollar will allow), more countries will be able to buy or products, instead of being forced to go off shore or to foreign countries. Total profit will therefore go up. Remember, large numbers may look very good to an  accountant or to an economist but, if our dollar is worth nothing than neither are the large numbers. 

What this country really needs, desperately, is a levelling off and equalization of wages; so that the construction worker, farmer, fisherman, service worker can enjoy the same health, security, and number of privileges as the sports "celebrity", entertainer and POLITICIAN. It has been quoted that politic is the only profession in which stupidity is considered an asset but with million dollar pensions after eight years, politicians can not be that stupid--not as much as they seem.

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