Well, they have no clue where they invest in. At some point an entire company is reduced to an S&P rating. Investors are just like lemmings. The dot-com bubble and the financial crisis are excellent examples.
-- Failure does not prove something is impossible, failure simply indicates you are not using the right tools... nico@nctdevpuntnl (punt=.) --------------------------------------------------------------
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g sYep- and good riddance to it- had to be the number one employer of illegal immigrant labor. Housing in the US is mostly a really low- quality commodity.
You're adding an external energy input to get your perpetual motion machine to work.
Draw the circle to include the whole system, including China. Okay, now explain how everyone eats, gets rich and no one needs to manufacture anything...
-- Cheers, James Arthur
this works for a while, but what happens when the Chinese learn to dream up their own ideas for new marbles, then they no longer need the "geniuses" in the US.
So then what do you have left to "trade"?
It is dangerous to under estimate what other people can or cannot do. First we outsourced manufacturing and said we will continue to do the engineering and management here. Now we are outsourcing engineering thinking they need our brilliant management. Guess again.
Analogy: The jet is loosing altitude. Hey, lets jettison those dirty noisy heavy engines. And in fact you will find the jet is able to gain altitude after you jettison all that dirty stuff.. for a while...
Economics is about the CREATION and distribution of wealth.
The fundamental problem in the US is the adversarial relationship between management and labor. We have a team that is fighting with itself. How well will that compete? Management is using labor from the other team.
A 3 legged stool needs all three legs working together.
Mark
Long-term the market is a good measure. Short-term, you're right.
Right now, stocks are (correctly) up. Companies are profitable because they're smaller and more efficient--they cut staff to weather the storm. Cold comfort to those affected though.
Normally they'd be hiring back long go, but Obamacare (1/6th the economy), bailouts, the financial regulation bill (financial sector), mortgage meddling (prolonging the foreclosure fiasco, affecting banks, housing & construction), punitive energy policy, etc. are discouraging all the various sectors. Add those up and it's well over half the economy under assault, by idiots.
It's all one giant sack of hopium.
-- Cheers, James Arthur
te:
The truth is we don't need more houses right now--there are millions of foreclosures in shadow inventory. The gov't's encouraging that by hook, and by crook. Another stupid intervention extending the crisis, and making it worse.
James Arthur
Long-term the market is a good measure. Short-term, you're right.
Right now, stocks are (correctly) up. Companies are profitable because they're smaller and more efficient--they cut staff to weather the storm. Cold comfort to those affected though.
Normally they'd be hiring back long go, but Obamacare (1/6th the economy), bailouts, the financial regulation bill (financial sector), mortgage meddling (prolonging the foreclosure fiasco, affecting banks, housing & construction), punitive energy policy, etc. are discouraging all the various sectors. Add those up and it's well over half the economy under assault, by idiots.
It's all one giant sack of hopium.
-- Cheers, James Arthur
I heard yesterday that Obama raised more money in his run for president than any other presidential candidate in history. Isn't that telling. Just makes you wonder what wealthy powers-that-be were behind that wall of money, and why. Tom
Its simple: not many people can afford to buy a shipload of iPhones. So someone (the importer) buys 100,000 iPhones, deals with the paperwork and stores them in a warehouse. From the warehouse smaller shipments are distributed across the country. Even though nothing is manufactured, there is still a lot of work involved.
Yes, but the creation is not manufacturing.
-- Failure does not prove something is impossible, failure simply indicates you are not using the right tools... nico@nctdevpuntnl (punt=.) --------------------------------------------------------------
Socialist weenie!
It HAS to be creating something tangible. Service industries do NOT create wealth. ...Jim Thompson
--
| James E.Thompson, CTO | mens |
| Analog Innovations, Inc. | et |
| Analog/Mixed-Signal ASIC's and Discrete Systems | manus |
| Phoenix, Arizona 85048 Skype: Contacts Only | |
| Voice:(480)460-2350 Fax: Available upon request | Brass Rat |
| E-mail Icon at http://www.analog-innovations.com | 1962 |
Remember: Once you go over the hill, you pick up speed
The NRA is less biased than most organisations and any union including ALPA.
-- Reply in group, but if emailing add one more zero, and remove the last word.
People still want and need stuff. Grass can only be cut by people who have food, lawn mowers, and beer.
Labor, even if it's not productive, keeps people occupied, out of trouble, and healthier than if they did nothing. And it puts them on a slope where it's to their benefit, and everyone's benefit, to become productive.
John
No, you make money by doing something tangible with the time you now how free. If you do nothing, no "wealth" is created. If your "design" never makes it to product, you ultimately have no client to consult. Take that to the bank.
[snip] ...Jim Thompson
--
| James E.Thompson, CTO | mens |
| Analog Innovations, Inc. | et |
| Analog/Mixed-Signal ASIC's and Discrete Systems | manus |
| Phoenix, Arizona 85048 Skype: Contacts Only | |
| Voice:(480)460-2350 Fax: Available upon request | Brass Rat |
| E-mail Icon at http://www.analog-innovations.com | 1962 |
Remember: Once you go over the hill, you pick up speed
Yeah, they do. Suppose a lawn guy cuts my yard for less than half my billing rate ( and presume that mowing the yard frees up that amount of time for billing ). Then I make money by not mowing my lawn.
If my billing rate were high enough, this could apply to just about any service.
During the transition from agriculture to manufacturing, there was a class of philosophers and thinkers called the Physiocrats. They were only barely wrong, but they were still wrong:
They thought only agricultural production made anyu sense, and that all other economic activities were at the expense of using land to make food. You can consider Adam Smith's "Wealth of Nations" a rebuttal to that opinion that has held up for a long time.
We have a similar thing going on with manufacturing, when it is apparent that manufacturing has less return than other things ( including mowing other people's lawns ).
Labor is a necessary evil, but it is still an evil. It is to be avoided unless the returns make it worth it. That's pretty much the prime invariant for efficiency. If you are saying that there is a value higher than efficiency at play ( and it happens ), then you're in for a difficult explanation of why.
-- Les Cargill
It's *really* interesting. I don't know why. Here's a small firehose of data:
Lotta blue there.
-- Les Cargill
The econ blogs I have been reading since 2007 seem to indicate that perceived lack of demand has caused this more than regulation risk.
Ah, here we go. Yes, it's Brad DeLong, but others have also showed the same basic data:
I would agree to us learning nothing from foreclosure/the crisis, just as we learned nothing from the S&L crisis.
Quite.
Mr. Derbyshire alludes to the general trend for replacing expensive labor with far, cheap labor and finally machines. And I think he's also right that conservatives need to retarget away from some of the ... crazier .... narratives that they've been running.
-- Les Cargill
Except that now we have a government that steals money from you to give away "free" food and beer to those who won't mow lawns. The same number of lawn mowers are needed.
Why do that when beer is free?
You didn't take this far enough. Yes, he frees up your time so you can work more, and bill more, but who are you billing? You are billing engineering time to someone who will be manufacturing the widget you are designing, or helping design. Again, making things lies at the base of the pyramid, whether it is electronics, food, machines, etc. Someone has to mine or drill for the energy to produce, another has to mine or drill for the raw materials, etc. The envirowheenies decided it was too dirty to actually make things, so have gone about exporting and banning it, and then wondered why our economy tanked!
Charlie
When we didn't know better it was assumed that Cincinatus was a great man, but now "concentration of power is bad" requires more thought.
-- Reply in group, but if emailing add one more zero, and remove the last word.
That is probably more due to lack of education. You need uneducated people for simple jobs. If you educate people you can outsource the simple work and have people use their brains (and make more money).
It reminds me a bit of myself. I tend to do as much as possible myself but in reality I'm better off outsourcing the simple work and use that time to educate myself or work on paid projects. Last week I spend a few hours trying to etch a board which was pushing my gear too far. In the end I send the files to a PCB house and have them deal with it.
-- Failure does not prove something is impossible, failure simply indicates you are not using the right tools... nico@nctdevpuntnl (punt=.) --------------------------------------------------------------
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Creation of wealth IS manufacturing and engineering and marketing and financial management... it's like parts of a team, all parts are important for the team to work well together...
Unfortunately in this county (USA) manufacturing has been and now to some extent engineering is being deprecated and devalued because it can be outsourced for lower cost. The companies and now the entire country is finding that the plane does not fly well without the engine. And also there is no reason for the trend to continue. The manufacturing and engineering has been / is being outsourced, this leaves a shell of a company with no "core competencies". You think companies in China that now have the manufacturing and engineering expertise that we outsourced won't learn to do their own marketing and finance.
We are giving away the goose that lays the golden eggs.
I'm in engineering. Over the last 10 years or so I have gained a respect for manufacturing and marketing and finance etc. For a team to succeed, there needs to be mutual respect among all the members of the team. When managment learns to respect manufactering and engineering, then we have a chance to fix the problems in he US.
Mark
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