Tuesday, July 10, 2007

We are beginning to Reap of the Whirlwind, as Construction Costs start to accelerate faster than normal Inflation. The major drive to Offshore production to avoid American Labor Costs has led to super-Drafts of Construction materials throughout the World; inciting high Construction Costs domestically, which will drive up Utility Costs in doing Business in the United States, and coincidently, suppressing Consumer Demand for exactly those Products which American business wished to specialize within, simply because of their high Energy use.

It matters little whether it is Passenger Jets, the Information Highway, or Kitchen aids; American business committed to Energy-intensive Goods where Consumers will disappear if (actually when) high Energy pricing drive them from the Market. I will make the Prediction that Air-traffic miles will be cut in half inside a Decade; due to high Energy charges reflected in Ticket pricing, and the generally poor Service–which is a intense Labor activity. Electrical Bills will soon be in direct competition with Heating, Food, and Mortgage, and will lose out rapidly; Appliances will be left to vegetate, and will not be repurchased. Phone Service, while increasingly Wireless, will decline as Charges rise; people will start to throw away their Cell-phones.

Business will also alter drastically, as IT loses force; this due the Wealth of available (but without Royalty) Information on the Internet. Advanced Streaming holds less value for the majority of Business activity, and Consultants will find little employment with higher Wage demands. The Traditional Business formats will be rediscovered, and serving the local Markets will carry much greater appeal as Transportation Costs eat up the real value of Outsourcing. Our World will change, not because of real Shortages, but because of unrealistic Pricing of Goods and Services. We could be entering an new Age of Micro-production. lgl

(I will exceedingly grateful when my Blog Server fixes the Title input)

No comments: