Zeev's Turnips Patch-No Politics (ZEEV)

[Public Heel]

Very interesting. I had not thought of it that way (clearly, I am not an economist). While reading it, though, it occurred to me that there was a larger, and even more insidious, cause of the decoupling of capital investment and job growth.

A lot of the capital investment is being spent overseas.

If Proctor and Gamble ups their capex by $1B, but spends it all in Mexico and China, then it does our labor market no good at all.

An optimist, however, would read this article and say that, once companies have spent their new dollars where they can get the greatest returns (machines), they will have no choice but to spend additional profits on assets providing lesser returns (people).