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Message:: [QUOTE="medoraman, post: 1491156, member: 26302"]Let's see, well Henry Ford coubled his workers pay to $5 a day but MORE than doubled the speed of his line. His workers worked harder, therefor were worth more, therefor got paid more. Henry Ford was no worker savior, he was a businessman. You stating that no one could afford NJ, well that is because housing and the like is priced today with trillions of dollars in public assistance assumed. Without this money jacking up the prices of land, maybe an apartment costing $800 a month today would only cost $200 a month. There is no way of knowing what you are claiming knowledge of Cloud. Is the price of an apartment in poorer countries the same as NJ? Why not? Because they are priced at what the population can AFFORD. Trust me, landlords would not have 500 empty apartments, they would lower rent until people could afford it. Land prices would fall until people could afford houses. Real Estate is a function of local incomes, and take away public assistance, and local incomes fall, so rents fall. Btw, comparative advantage has nothing to do with similar incomes. Heck, I taught it using an example where one country could produce every single thing cheaper than the other, but comparative advantage STILL led to higher consumption in both countries. I think you need to go read this theory again, I don't think you are getting it.[/QUOTE]