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#1
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N2EY wrote:
"Bill Sohl" wrote in message hlink.net... "N2EY" wrote in message ... In article , "Dee D. Flint" writes: And if we get lucky it will perhaps cause some of that business to return to the US over time. I wouldn't count on it, Dee. Unless the American people get a lot more choosy about what they buy. The Bush Administration is so desperate for good numbers that last week they seriously investigated the possibility of redefining the work of hamburger assembly. IOW, they asked why jobs at Burger Meister couldn't be classified as "manufacturing". Whether it's a Big Mojo Burger or a minivan, it's assembly, isn't it? "No Millionaire Left Behind" The reality of things economic is that, like it or not, we are in a global economy and that isn't going to change. That's true to a point. But we don't have to simply accept everything that comes down the pike as inevitable. It will probably stabilize when one of the programmers from India writes a good program to replace CEO's! ;^) The drastic reduction in costs of shipping (both importing and exporting goods) as well as similar reductions for communications makes it cheaper to manufacture and even provide certain service functions off-shore. That isn't going to change in the short run. Only if it doesn't affect buyer behavior. If buyers protest with their dollars, things will change. In the long run, those currently cheap off shore labor markets will self adjust upwards. Maybe. And if so, might they not find themselves in the same boat? Correct! I have alway though that the best argument for what is going on is the elevation of a population's living standard. A country has a low standard of living, and the workforce is available for next to nothing, wage wise. So like Pizza take-out's in a college town, everyone ant their brother migrate there for the cheap labor. AS the standard of living goes up, the cheap labor starts to demand more in salary and/or benefits. This works for a while, but eventually another poor country looks attractive to employers. So they move on to the next poor country. Examples are what has happened to Japan. Korea is the present hot spot, but is slowing. China is ascendant now, but the inevitible will happen there. Mexico is now experiencing import concerns too. What happens when the cycle is complete, and the last third world nation is brought up to modern standards will be the interesting thing. In the short run, US labor has their head in the sand if they think there's something either party (Dems or Reps) can really do to stem the shift of manufacturing jobs overseas. The same thing is going on in Europe. OTOH, unemployed workers can't buy the goods anyway. So what good are lower prices? You see, the big trick is to have all this happen without ourselves turning into a third world country. See below. In the long run, employees must be constantly reevaluating their job skills and looking at the prospect of how vulnerable their job may be as to their job being farmed out to off shore labor. That's true up to a point. But how often is it reasonable to expect a person to retrain? And what happens to "the wealth of nations" in the meantime? I don't know of any country that grew prosperous on a service economy alone. Countries that are service based economies are the *servants* of other countries. We can "reality" each other all day long, but if economies chase the almighty profit without any moral guidance - that is if they are not in business for the sole purpose of making a buck, then disaster is the result. - Mike KB3EIA - |
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#2
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In article , Mike Coslo
writes: The reality of things economic is that, like it or not, we are in a global economy and that isn't going to change. That's true to a point. But we don't have to simply accept everything that comes down the pike as inevitable. It will probably stabilize when one of the programmers from India writes a good program to replace CEO's! ;^) 'zactly. The drastic reduction in costs of shipping (both importing and exporting goods) as well as similar reductions for communications makes it cheaper to manufacture and even provide certain service functions off-shore. That isn't going to change in the short run. Only if it doesn't affect buyer behavior. If buyers protest with their dollars, things will change. In the long run, those currently cheap off shore labor markets will self adjust upwards. Maybe. And if so, might they not find themselves in the same boat? Correct! I have alway though that the best argument for what is going on is the elevation of a population's living standard. A country has a low standard of living, and the workforce is available for next to nothing, wage wise. So like Pizza take-out's in a college town, everyone ant their brother migrate there for the cheap labor. AS the standard of living goes up, the cheap labor starts to demand more in salary and/or benefits. This works for a while, but eventually another poor country looks attractive to employers. So they move on to the next poor country. The trick is to do that without creating more poor countries. And the fundamental question is: Why are countries poor in the first place, and how do countries get rich and stay rich without exploiting other countries? Examples are what has happened to Japan. Korea is the present hot spot, but is slowing. China is ascendant now, but the inevitible will happen there. Mexico is now experiencing import concerns too. Remember NAFTA and the "giant sucking sound"? Where's Ross now? What happens when the cycle is complete, and the last third world nation is brought up to modern standards will be the interesting thing. First you have to understand why it hasn't happened yet. In the short run, US labor has their head in the sand if they think there's something either party (Dems or Reps) can really do to stem the shift of manufacturing jobs overseas. The same thing is going on in Europe. OTOH, unemployed workers can't buy the goods anyway. So what good are lower prices? You see, the big trick is to have all this happen without ourselves turning into a third world country. See below. And that trick is? In the long run, employees must be constantly reevaluating their job skills and looking at the prospect of how vulnerable their job may be as to their job being farmed out to off shore labor. That's true up to a point. But how often is it reasonable to expect a person to retrain? And what happens to "the wealth of nations" in the meantime? I don't know of any country that grew prosperous on a service economy alone. Countries that are service based economies are the *servants* of other countries. We can "reality" each other all day long, but if economies chase the almighty profit without any moral guidance - that is if they are not in business for the sole purpose of making a buck, then disaster is the result. Actually I think it's simpler than that. They have to consider both the short-term buck and the long-term buck. Henry Ford was criticized by other industrialists because he paid workers the princely sum of $5 per day. His response was that it did not make sense to him to have people building a product they could not afford to buy. He traded off the short-term buck of higher wages for the long-term buck of a bigger market. I don't think he did this out of any love for the workers or the country, but rather because he saw a bigger picture. 73 de Jim, N2EY |
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#3
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"N2EY" wrote in message ... In article , Mike Coslo writes: Actually I think it's simpler than that. They have to consider both the short-term buck and the long-term buck. Henry Ford was criticized by other industrialists because he paid workers the princely sum of $5 per day. His response was that it did not make sense to him to have people building a product they could not afford to buy. He traded off the short-term buck of higher wages for the long-term buck of a bigger market. I don't think he did this out of any love for the workers or the country, but rather because he saw a bigger picture. Exactly, he saw that by looking at the longterm, his overall total profits would be enhanced. He wanted a longterm, stable income than a quick buck. Dee D. Flint, N8UZE |
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#4
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Dee D. Flint wrote:
"N2EY" wrote in message ... In article , Mike Coslo writes: Actually I think it's simpler than that. They have to consider both the short-term buck and the long-term buck. Henry Ford was criticized by other industrialists because he paid workers the princely sum of $5 per day. His response was that it did not make sense to him to have people building a product they could not afford to buy. He traded off the short-term buck of higher wages for the long-term buck of a bigger market. I don't think he did this out of any love for the workers or the country, but rather because he saw a bigger picture. Exactly, he saw that by looking at the longterm, his overall total profits would be enhanced. He wanted a longterm, stable income than a quick buck. And the most amazing thing is that with just that outlook, we not only stabilize the situation, but we preserve the best part of how our econmmic system works. I always thought that the best way was to let the businesses do their thing as much as possible, with a light touch. The time for intervention is when the business threatens the environment, employee rights (such as there are any) or of course engaging in illegal activities, which there will always be some companies willing to do that. And of course the monopoly problems. - Mike KB3EIA |
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#5
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In article , Mike Coslo
writes: Exactly, he saw that by looking at the longterm, his overall total profits would be enhanced. He wanted a longterm, stable income than a quick buck. And the most amazing thing is that with just that outlook, we not only stabilize the situation, but we preserve the best part of how our econmmic system works. Henry Ford wasn't a paragon of virtue by any means but he did take the long view. That's considered old-fashioned today. I always thought that the best way was to let the businesses do their thing as much as possible, with a light touch. The time for intervention is when the business threatens the environment, employee rights (such as there are any) or of course engaging in illegal activities, which there will always be some companies willing to do that. And of course the monopoly problems. Of course - the devil is in the details, though. How much environmental threat is OK? What rights do employees really have? Martha and her bookie...I mean broker...got convicted, didn't they? Here's a datapoint for ya: The USA imported 57% of the petroleum used here last year, up from 56% in the previous year. Domestic production is down slightly. Even if the Alaskan refuge is drilled, it will be 10 years before full production is reached there. Gasoline prices are already about $1.75 and it's only March. Meanwhile, SUV sales are at record levels and a process called TDP (Thermal Depolymerization) is almost unheard of. How do we get folks to take the long view again? 73 de Jim, N2EY |
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#6
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N2EY wrote: In article , Mike Coslo writes: Exactly, he saw that by looking at the longterm, his overall total profits would be enhanced. He wanted a longterm, stable income than a quick buck. And the most amazing thing is that with just that outlook, we not only stabilize the situation, but we preserve the best part of how our econmmic system works. Henry Ford wasn't a paragon of virtue by any means but he did take the long view. That's considered old-fashioned today. It's a debatable case for invoking Godwin, maybe? I always thought that the best way was to let the businesses do their thing as much as possible, with a light touch. The time for intervention is when the business threatens the environment, employee rights (such as there are any) or of course engaging in illegal activities, which there will always be some companies willing to do that. And of course the monopoly problems. Of course - the devil is in the details, though. How much environmental threat is OK? What rights do employees really have? Sure. We have a local case in which a massive amount of known Iron Pyrite rock was dumped in a small valley with a stream running along the bottom of the valley. The valley is all filled in now. The predictable happened, and we now have a massive acid drainage problem that will kill many tourist frequented streams and will probably sterilize the creeks it runs into and construction on the highway has been stopped, and we have a real mess on our hands. Not much of a gray area there I think. And we can keep busy enough with the blatant cases that we don't have to go after Joe six-pack and his Sunday BBQ or his lawnmower. Martha and her bookie...I mean broker...got convicted, didn't they? Here's a datapoint for ya: The USA imported 57% of the petroleum used here last year, up from 56% in the previous year. Domestic production is down slightly. Even if the Alaskan refuge is drilled, it will be 10 years before full production is reached there. Gasoline prices are already about $1.75 and it's only March. Some people are making a good profit. Meanwhile, SUV sales are at record levels and a process called TDP (Thermal Depolymerization) is almost unheard of. Wellll, you are partially correct. You lump SUV's as if they are all of the Excursion/Suburban/Escalade type. And that is wrong. I just bought an SUV that gets in the 20's in town, and low 30's on the highway. It's downright tiny by comparison, and is a very responsible vehicle as far as resources go. And I don't think that any of the Bio fuel options are viable or even desirable. To see what I mean, replacement of even a tiny fraction of what we use now in fossil fuel will take a lot of biofuel, and how much can we make? The tragedy of the biofuels is this: America decides that we should go ethanol in a big way. Lots of corn and other sources are grown for fermentation. After all, this will use up that silly surplus, right? Only then it's no longer surplus. There would be a lot of pressure to grow more and more of the raw materials. Have you seen what has happened to much of the great plains lately? Salt desert, and besides that, the aquifer is not being recharged except at a very slow rate. Now when push comes to shove, and population starts to strain our ability to produce food, you make the decision. Food or fuel? Who drives and who dies? How do we get folks to take the long view again? It will probably take running out of/low on resources of one kind or the other. Like the above. - Mike KB3EIA - |
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#7
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In article , Mike Coslo
writes: N2EY wrote: In article , Mike Coslo writes: Exactly, he saw that by looking at the longterm, his overall total profits would be enhanced. He wanted a longterm, stable income than a quick buck. And the most amazing thing is that with just that outlook, we not only stabilize the situation, but we preserve the best part of how our econmmic system works. Henry Ford wasn't a paragon of virtue by any means but he did take the long view. That's considered old-fashioned today. It's a debatable case for invoking Godwin, maybe? My point was simply that I'm not glorifying him. I always thought that the best way was to let the businesses do their thing as much as possible, with a light touch. The time for intervention is when the business threatens the environment, employee rights (such as there are any) or of course engaging in illegal activities, which there will always be some companies willing to do that. And of course the monopoly problems. Of course - the devil is in the details, though. How much environmental threat is OK? What rights do employees really have? Sure. We have a local case in which a massive amount of known Iron Pyrite rock was dumped in a small valley with a stream running along the bottom of the valley. The valley is all filled in now. The predictable happened, and we now have a massive acid drainage problem that will kill many tourist frequented streams and will probably sterilize the creeks it runs into and construction on the highway has been stopped, and we have a real mess on our hands. Who dumped the bad rock? Not much of a gray area there I think. And we can keep busy enough with the blatant cases that we don't have to go after Joe six-pack and his Sunday BBQ or his lawnmower. Of course! That's the kind of details I'm talking about. OTOH, one of the excuses given by industry is that environmental concerns cost too much. Martha and her bookie...I mean broker...got convicted, didn't they? Here's a datapoint for ya: The USA imported 57% of the petroleum used here last year, up from 56% in the previous year. Domestic production is down slightly. Even if the Alaskan refuge is drilled, it will be 10 years before full production is reached there. Gasoline prices are already about $1.75 and it's only March. Some people are making a good profit. Yup. Meanwhile, SUV sales are at record levels and a process called TDP (Thermal Depolymerization) is almost unheard of. Wellll, you are partially correct. You lump SUV's as if they are all of the Excursion/Suburban/Escalade type. Many of them are. And that is wrong. I just bought an SUV that gets in the 20's in town, and low 30's on the highway. It's downright tiny by comparison, and is a very responsible vehicle as far as resources go. Sure - but how many of the big ones are sold for every responsible one? And how many are driven as commuting vehicles and status symbols rather than because their capabilities are really needed? And I don't think that any of the Bio fuel options are viable or even desirable. To see what I mean, replacement of even a tiny fraction of what we use now in fossil fuel will take a lot of biofuel, and how much can we make? TDP isn't biofuel. The tragedy of the biofuels is this: America decides that we should go ethanol in a big way. Lots of corn and other sources are grown for fermentation. After all, this will use up that silly surplus, right? Nope. Only then it's no longer surplus. There would be a lot of pressure to grow more and more of the raw materials. Have you seen what has happened to much of the great plains lately? Salt desert, and besides that, the aquifer is not being recharged except at a very slow rate. Ethanol has other problems, too, such as poor performance at low temperatures. TDP is something completely different. Now when push comes to shove, and population starts to strain our ability to produce food, you make the decision. Food or fuel? Who drives and who dies? Exactly. Point is, there's no single simple answer. Instead, we need a coordinated approach on many fronts. Efficiency - conservation - recycling - new technology - infrastructure. Most of all, changes in how we live. How do we get folks to take the long view again? It will probably take running out of/low on resources of one kind or the other. Like the above. Unfortunately, you may be right. 73 de Jim, N2EY |
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#8
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#9
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#10
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N2EY wrote:
In article , Mike Coslo writes: The reality of things economic is that, like it or not, we are in a global economy and that isn't going to change. That's true to a point. But we don't have to simply accept everything that comes down the pike as inevitable. It will probably stabilize when one of the programmers from India writes a good program to replace CEO's! ;^) 'zactly. The drastic reduction in costs of shipping (both importing and exporting goods) as well as similar reductions for communications makes it cheaper to manufacture and even provide certain service functions off-shore. That isn't going to change in the short run. Only if it doesn't affect buyer behavior. If buyers protest with their dollars, things will change. In the long run, those currently cheap off shore labor markets will self adjust upwards. Maybe. And if so, might they not find themselves in the same boat? Correct! I have alway though that the best argument for what is going on is the elevation of a population's living standard. A country has a low standard of living, and the workforce is available for next to nothing, wage wise. So like Pizza take-out's in a college town, everyone ant their brother migrate there for the cheap labor. AS the standard of living goes up, the cheap labor starts to demand more in salary and/or benefits. This works for a while, but eventually another poor country looks attractive to employers. So they move on to the next poor country. The trick is to do that without creating more poor countries. At the present time, I doubt that is a concern. And the fundamental question is: Why are countries poor in the first place, and how do countries get rich and stay rich without exploiting other countries? Examples are what has happened to Japan. Korea is the present hot spot, but is slowing. China is ascendant now, but the inevitible will happen there. Mexico is now experiencing import concerns too. Remember NAFTA and the "giant sucking sound"? Where's Ross now? Ahh, there was some comic relief! What happens when the cycle is complete, and the last third world nation is brought up to modern standards will be the interesting thing. First you have to understand why it hasn't happened yet. There are plenty of countries yet to bring up. In the short run, US labor has their head in the sand if they think there's something either party (Dems or Reps) can really do to stem the shift of manufacturing jobs overseas. The same thing is going on in Europe. OTOH, unemployed workers can't buy the goods anyway. So what good are lower prices? You see, the big trick is to have all this happen without ourselves turning into a third world country. See below. And that trick is? As I see it, one of the first things to do is to stabilize the stock market. Right now it is so short term, that it will do damage to the companies involved, and to workers. The pressure to increase profits on the short time scales now involved makes longterm actions difficult if not impossible. I don't subscribe to the Japanese lifetime employment thing, but at the base of it, there is a valid idea. Humans desire a little stability. Remove that stability, and a whole host of problems erupt. Employer loyalty goes away, and when that happens, things suffer. If I know my employer will just as soon get rid of me for .001 percent rise in their stock, I'm not going to be willing to stay in all night to make sure the project goes out the door on time. Note the present legislative efforts to shift workers from overtime eligible to salaried. From the supershort term view, this makes perfect sense. Reduction of the employees salary by mandatory unpaid overtime. This will make for a quick jump in profits. From a longer term perspective, it makes for a "what do we do next quarter to increase profits" issue, it makes the job less desireable, because now the employees are taking a wage cut, and they have it reinforced that their empoloyer would like nothing better than to get rid of them. In the long run, employees must be constantly reevaluating their job skills and looking at the prospect of how vulnerable their job may be as to their job being farmed out to off shore labor. That's true up to a point. But how often is it reasonable to expect a person to retrain? And what happens to "the wealth of nations" in the meantime? I don't know of any country that grew prosperous on a service economy alone. Countries that are service based economies are the *servants* of other countries. We can "reality" each other all day long, but if economies chase the almighty profit without any moral guidance - that is if they are not in business for the sole purpose of making a buck, then disaster is the result. Actually I think it's simpler than that. They have to consider both the short-term buck and the long-term buck. Henry Ford was criticized by other industrialists because he paid workers the princely sum of $5 per day. His response was that it did not make sense to him to have people building a product they could not afford to buy. He traded off the short-term buck of higher wages for the long-term buck of a bigger market. I don't think he did this out of any love for the workers or the country, but rather because he saw a bigger picture. 73 de Jim, N2EY - Mike KB3EIA - |