Monday, September 20, 2010

Preserving High Wages

There was an article in the paper recently about how people from Vietnam are going into China illegally to find better paying jobs. Sounds familiar? It seems that when a lower paid community beats out a higher paid community by being able to offer cheaper prices, they will eventually rise up to become higher paid than someone else. If the high paid community wants to remain high paid, high tariffs to artificially keep their wages up might work temporarily but not in the long term. Instead, the high paid community has to continually offer new products and services that others can not (at least until the others figure out how to do it or make it themselves). That is the challenge for you American humans. Your strength is in your ability to innovate, and in your ability to attract and integrate immigrants from all over the world to bring new ideas to America. If an American dog like me can see it, hopefully enough of you American humans can see it too.

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