S & P Dire Warnings

[BlueStreak]

So, low wages aren't good for the economy? Who knew?

Dave

[bobabode]

Overview

• At extreme levels, income inequality can harm sustained economic growth over long periods. The U.S. is approaching that threshold.
• Standard & Poor's sees extreme income inequality as a drag on long-run economic growth. We've reduced our 10-year U.S. growth forecast to a 2.5% rate. We expected 2.8% five years ago.
• With wages of a college graduate double that of a high school graduate, increasing educational attainment is an effective way to bring income inequality back to healthy levels.
• It also helps the U.S economy. Over the next five years, if the American workforce completed just one more year of school, the resulting productivity gains could add about $525 billion, or 2.4%, to the level of GDP, relative to the baseline.
• A cautious approach to reducing inequality would benefit the economy, but extreme policy measures could backfire

https://www.globalcreditportal.com/r...40804-19:41:13

[bobabode]

Originally Posted by BlueStreak

So, low wages aren't good for the economy? Who knew?

Dave

Everybody except the sharks down on Wall St. Those damn soshulists at S&P are a buzzkill.

[Rajoo]

Originally Posted by BlueStreak

So, low wages aren't good for the economy? Who knew?

Dave

I am sure that a lot of people knew. When the wages get depressed, consumer base with disposable income shrinks. So demand deceases.

A college education increases one's earning power but the cost of education has sky rocketed. I made a rough comparison on the tuition fees for the school I went to in 1969. Tuition fees per quarter was equivalent to 170 hours of work at minimum wage then. Now it's equivalent of 630 hours at today's minimum wage. So working part time and going to school is not an option without financial assistance from family or student loan. As wages keep dropping, how many parents can afford to pay for their children's education?