The Economy wobbles

Durable Goods dropped again after the sharp drop in August. They fell only 0.8% stripped of Defense Orders, but follows a 2.7% drop in the preceding month. The real unpleasant note come in the drop of nondefense Capital Goods of 0.3%, meaning Business feels no hurried push towards growth. This may be because of the Manufacturers' Survey which showed U.S. Manufacturers confronted Fixed Costs some 31.7% higher than their foreign Competitors, and this disparity has been growing rapidly. They face higher Corporate Taxes, higher Energy pricing (especially Natural Gas), and the health care Costs and Pension Costs of the Ageing population.

A Kaiser Trust Survey capsules the basic pressure on Small Business in provision of health care:

The cost for family coverage under an employer health plan is now $11,480, nearly double the cost in 2000 – and that cost looks to rise at a similar clip next year, two nationwide surveys show.

A NYTimes article highlights the basic attitude of most Employees, which Employers consider their enemy. Entire Route Health Care becomes impossibly high in Cost as the Population ages.

Greg Mankiw, Arnold Kling, and Tyler Cowan all weigh in on Immigration, based upon a Study.
I have a little difficulty with the Kremer premise, knowing the levels of subjugation suffered by female immigrant Household labor and withholding of promised Wages, especially in many of the greatest Importer Countries of such labor. It smells more of Indentured Servitude of the Poorest and least capable of defense. Mark Thoma provides an interesting overall article on Worker response to Inequality, but has aside views to the impact of Immigration. lgl