About the new comments on economy of Alan Greenspan..

[Horizon68]

Hello..


About the new comments on economy of Alan Greenspan..

I think we have to be smart, and i have to be smart, so I have just read
the following from Alan Greenspan, read it carefully and my answer below:

==

Alan Greenspan says economy will start to fade 'very
dramatically' because of entitlement burden

cnbc.com
April 12, 2019

Read more here:

https://www.cnbc.com/2019/04/12/alan-greenspan-says-economy-will-start-to-fade-out-because-of-growing-us-entitlement-burden.html"

==


So I am not in accordance with Alan Greenspan, here is why:


I start it by my following question:

If you compare the current Nissan or Toyota $38 per hour wage and
benefit costs ( almost no retirees supported ) to GM, Ford, Chrysler $75
per hour wage and benefit costs (each employee supports 4 retirees ) -
does it means that pensions negatively affect economic competition ?

My answer:

I think no, here is why:

"For those who still believe that globalization is essentially about
moving production where labor costs are as low as possible, they will
have to upgrade, says McKinsey. This logic no longer applies today to
only 18% of trade in goods, the rest being decided according to the
availability of skilled labor, access to natural resources, the
proximity of consumers or the quality of infrastructure. Even
labor-intensive industries, such as clothing and furniture, have to
adapt to rising wages in poor countries and are increasingly resorting
to automation."

Read below:


A globalization in transition..

If we computed better, we would see that trade services do not count for
a quarter of world trade (5,100 billion), but for more than half (13,400
billion), and that this part of the commerce grows one and a half times
faster than the other party for ten years.

For those who still believe that globalization is essentially about
moving production where labor costs are as low as possible, they will
have to upgrade, says McKinsey. This logic no longer applies today to
only 18% of trade in goods, the rest being decided according to the
availability of skilled labor, access to natural resources, the
proximity of consumers or the quality of infrastructure. Even
labor-intensive industries, such as clothing and furniture, have to
adapt to rising wages in poor countries and are increasingly resorting
to automation.

Read more here:

https://www.ledevoir.com/economie/551554/analyse-une-mondialisation-en-transition



Thank you,
Amine Moulay Ramdane.