That effer went to my employer and offered to work for 15% less and now he's got my jerb! Demand is going down relative to the growth of our economy because employers are finding substitutes for our labor -- automation and offshoring.
In labor markets, labor is sold (ie employees sell, employers buy). Hence, when supply goes up (number of workers), price goes down (cost of labor/wages).
I don't understand. I just gave you an argument based of supply and demand (and borrowing a bit from Porter's Five Forces).
the demand for US-based labor is lessen when there are less expensive substitutes, such as off shore labor and automation the new tax cuts provide HUGE incentives fo Corp to invest more in Cap/Ex to increase productivity. not only is it tax deductible, it also helps Corp to find cheaper alternative to US labor. some eg, automated check out lines in grocery stores, McDonalds, WholeFoods, etc. robots in warehouses, assembly lines, kitchen, pizza vending machines, etc. help lines (for Intel, HP, Cable providers, etc) based in India, Phillipines, etc. off-shore mfg (iPhones) Autonomous driving is on its way Uber/Lyft replacing cab drivers
Corp spend most of that additional cash on Buying back stocks and Buying out other companies Then on increasing productivity
Actually productivity demand didn't go down, alternative suppliers selling entered the market, namely off shoring first and now automation. In other words, buyers no longer want your American human product (worker). Edit: acually I'd posit that demand for productivity is also down or isn't increased because buyers have different options to spend their money on to net returns instead of company growth. This is seen in buybacks and just general reinvesting in the finiancial markets
Offshoring can still be viewed in the context of supply and demand: it is an expansion of the labor supply. Same with immigration. A worker here, to compete with the expansion in supply essentially must lower their wages, lower their living conditions, and lower their work-place safety standards.
you're clueless as to the economic law of substitute goods; substitute goods, unlike complimentary goods, have a positive cross elasticity on demand. like automation, offshore labor is a substitute for US-based labor, as of now, a cheaper alternative for US companies. their availability lessens US co's demand for US-based labor ur ignorance is such that you lump offshore labor and immigration together---force-fitting a square peg into a circle
When you said Demand, it sounds like human labor demand. But that's not what employer care about. Employer simply demand Works. Works performed may be from any sources (human, machine, virtual machine, software...). I think works demand hasn't gone down. With a growing population and more wealth world wide, it's likely has grown and will continue to go up. Efficiency and technology are the main factors for driving down human labor demand for SOME segment, while driving up non-human labor demands. Government policies, such as tax incentive for machinery would accelerate this trend (another way Trump fk the people that vote for him).
