Short Term Trading Member Forum

[techcharter]

Chubbie- Productivity

As much as Prechter's call for the top in the stockmarket has been completely inaccurate, his Socionomic model is solid. Under the Socionomic model, productivity improves when workers feel good about themselves and the company they work for. This slowdown then would not be a true sign that demand side inflation is coming. It fact overproduction (productivity) was one of the 3 reasons the US went into the Great Depression. With so many factories closed as demand fell, the productivity of available assets fell. The discord between employer and employee is one of the symptoms of an impending bear market. Expect productivity to fall much more from these lofty heights.

Instead of factories today, we have Microsoft and WalMart. Microsoft creates software for technical companies to create "business solutions" that increase productivity. WalMart then buys these solutions and reduces the need for employees. Unions form when a sufficient number of employees feel the employer has somehow done them an injustice in pay or working conditions. Productivity is also one of the signs of a "Deflationary Depression".