A lot came out Today, but this author is feeling functionally bored with the whole process. Real issues are that Retail Sales dropped 0.4% overall, but Fuel stripped, rose 0.6%. This might sound good, except the Trade Deficit with China ran $22 billion. Does this seem like American productivity growth? Michael Mandel and Dean Baker worry about real productivity growth at New Economist link. Their worries, especially Baker's worry about the Cost of technology replacement make real sense.
American productivity seems stalled at a high Peak, and American Products (outside high Tech) appear ready to decline. Lumber and Construction materials are down, lumber at a 5 year low. Everyone's attention is on $59/barrel Oil, though all Commodities are tending downwards. Is there an overall sag in American production? Recheck the Mandel comments, then read this Reuters article.
To Pigou or Not to Pigou. Read both links provided by Greg. Each is compelling (a sorry state common to Economics). Rather than endure pigovian taxation, I would prefer Federal legislation dictating all Production and Production investments be mandated to exterior financing, with financial institution oversight of development. The law would insist all Profits must go to Investors or Stockholders, with a limit size of bonus awards to an equality with Salary packages.
But how could this help with Investment choice? Exterior Oversight by financial institutions would assure Production investment had a potential market share, was clear in Capital Costs and Production expenditures, and had standard Sales staff and policy. All this would come from financial institutions desire to be repaid all Debt. It cancels overduplication without Taxation. lgl
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