Stagnant, Dropping Wages = Housing Price Collapse? - Posted by Economics

Posted by michaela-ATL on November 04, 2005 at 09:28:41:

Because, I think, it’s easier for people to see themselves in those shoes and subxonsciously they’re relaly cheering on ‘themselves’. We’ve all sung in the shower, played some sports, acted out some imagined scenes. Sure, it’s on a different level, but it still seems a lot more attainable, than becoming a Bill Gates.

I think it’s the double-edged sword or this being the ‘land of oportunities’. Everybody dreams of getting ‘there’ the easy way by winning the lottery or ‘getting discovered’ or whatever, because it has happened.

I don’t know, if I’m really convaying what I’m trying to say. It’s easier to think it, than to spell it out :wink:


Stagnant, Dropping Wages = Housing Price Collapse? - Posted by Economics

Posted by Economics on November 02, 2005 at 13:25:25:

I’m reading an interesting book called “The World Is Flat: A Brief History of the Twenty-first Century”.

Being a Real Estate Investor, I like to apply whatever I read to the impact it will have to Real Estate Investing. The book is written by Thomas Friedman. Not only does he write well, but does so on an important subject- globalization. He states, “It is now possible for more people than ever to collaborate and compete in real time with more people on more different kinds of work from more different corners of the planet and on a more equal footing than at any previous time in the history of the world.”

He claims, “When the world is flat, you can innovate without having to emigrate”. But, how did the world `become flat’? Friedman suggest the trigger events were the collapse of communism, the dot-com bubble resulting in overinvestment in fiber-optic telecommunications, and the subsequent out-sourcing of engineers enlisted to fix the perceived Y2K problem.

Those events created an environment where products, services, and labor are cheaper. However, the West is now losing its strong-hold on economic dominance. Depending on if viewed from the eyes of a consumer or a producer - that’s either good or bad, or a combination of both.

What is more sobering is Friedman’s elaboration on Bill Gates’ statement, “When I compare our high schools to what I see when I’m traveling abroad, I am terrified for our work force of tomorrow. In math and science, our fourth graders are among the top students in the world. By eighth grade, they’re in the middle of the pack. By 12th grade, U.S. students are scoring near the bottom of all industrialized nations. . . . The percentage of a population with a college degree is important, but so are sheer numbers. In 2001, India graduated almost a million more students from college than the United States did. China graduates twice as many students with bachelor’s degrees as the U.S., and they have six times as many graduates majoring in engineering. In the international competition to have the biggest and best supply of knowledge workers, America is falling behind.”

Friedman sounds the alarm with a call for diligence and fortitude - academically, politically, and economically. He sees a dangerous complacency, from Washington down through the public school system. Students are no longer motivated. “In China today, Bill Gates is Britney Spears. In America today, Britney Spears is Britney Spears – and that is our problem.”

Re: Stagnant, Dropping Wages … - Posted by Frank Chin

Posted by Frank Chin on November 04, 2005 at 07:53:51:


Very thought provoking. Thanks.

When my old daughter, now 9, was in Pre-K, I remarked to the teacher at “parent teacher” conference that I’m so pleased that she’s taught things that I only learned in Kindergarten, and the FREE pre-K really gave kids a year’s head start on life. The teacher who’s a grandma said “there’re a year a head now, but they’ll be a few years behind by high school”.

Two years later, I was at another “parent teacher” conference and the second grade teacher said my daughter talks too much, pays little attention while he’s teaching, and it’s obvious she did not hear the lessons most of the time. I told him I had a similar problem back when I was in first grade, but when my dad heard about it, a quick spanking and scolding quickly corrected things. No, I did not scold or spank my daughter.

So my conclusion is “it’s not that schools are bad, or is money lacking, but the lack or parenting in many cases, and the laisse faire attitude that predominates”.

As to developing countries like China and India graduating more and even BETTER engineers, who can work cheaper, let’s not despair. First, they got a much larger population. And second, after a century or warfare (WWI, WWII, Korea, Vietnam), lets hope the development of society through education and trade would bring peace and stability.


I agree it’s true that many jobs had gone overseas. I agree that in the long run, we may not enjoy a steady escalating standard or living. But will we quickly become a second rate nation in short order??

It may happen, but it’ll be a slow process that takes many many years.

Take China for instance. It was a supreme power before and after the Mongol invasion of the 1200’s. The Mongol empire, that opened the silk road, establishment of a stable currency that allowed trade and commerce to flourish. It was the first GLOBALIZATION.

What happened. The west learned to make silk, and pottery themselves, in some cases kidnapping “silk merchants”. So the first OUTSOURCING took place.

Then, in the 1400’s the Ming emporers closed the country to the west, for a variety of reasons. The Indutrial Revolution took place in the west, China stagnated, and the rest is history.

But the downfall took several hundred years. So the collpase of the US economy, housing prices may take just that long.

BUT before then, western influence on Chinese, Indian cultures would have taken place, if it has not already. From what I read, parents are spoiling their kids rotten.

So in another 20 years, they’ll be lazy kids not learning in schools throughout China, they go home and mom and dad are busy at work, and get spanked?? NO.

It’ll take a while, but given time, schools there will COME DOWN to our level.

Frank Chin

Re: Stagnant, Dropping Wages - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on November 02, 2005 at 19:26:48:

He is right.

Re: Stagnant, Dropping Wages - Posted by Levi

Posted by Levi on November 03, 2005 at 11:14:20:

“In China today, Bill Gates is Britney Spears. In America today, Britney Spears is Britney Spears – and that is our problem.”

That cracks me up. I don’t get why people idolize rock stars, athletes, movie stars, etc so much. They get paid so much and their roles contribute so little to society.

Re: Stagnant, Dropping Wages - Posted by nikki

Posted by nikki on November 04, 2005 at 21:17:20:

its the golden rule. because they get paid so much