ChainsandFreedom
Posts: 222
Joined: 6/20/2007 Status: offline
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Susan: you go, you, for putting up with all of us who are writing such volumous posts trying to counter what you're saying. quote:
Capitalism isn't perfect - and re: What you said completey depends on the industry, the economy, and the time-line to which you refer, IMO. In the 60's we in the U.S. had "Shake N Bake", TAB, and lots of products that simply no longer exist, for various reasons. Today, perhaps we have too many kinds of razors, and 10 years from now, maybe nobody will be using them because someone has invented a way to market a deplilatory that is so attractive and affordable, nobody wants to use them anymore, or because more people can afford lasering for hair removal. I guess my point here was simply that demand for razors hasn't gone down, the supply hasn't gone down, yet the price has risen. Companies buying out companies to arrive at profit rather than competing for markets has altered capitalism at a fundimental level. quote:
Bubbles are created as much out of consumer abd-or corporate greed as much as anyhting. The Mortgage loan real-estate example currently is a good example. Some people want their bigger than necessary houses at any price it seems, and there are frims willing to cater to their greed, because they are as greedy, except on the opposite side of the fence. Consumers also want cheap cocaine, that doesn't mean deregulation is good for anyone save a few cartel kingpins. Regulations are there to protect both consumers and bussiness from greed-driven bad decsions. Unfortunatly, humanity is so filled with greed that the entire economy would collapse if at least some measure of greed-protection wasn't in place. quote:
If a proliferation of razor choices is the biggest problem, it is small potatoes IMO compared to getting the Feds involved in regulating how many manufacturers (or cnsumer choices) should be on the market, or stepping in to insist X number of employees per down-sizing firm be re-hired elsewhere at X dollars salary level. regulating the amount of bussiness's and forcing bussiness to hire the downsized seems pretty complicated. My solution would simply be to make it tougher to sell your case when you want to buy out another bussiness, and to fine major shareholders/executives an amount equal to any personal profits they make during the years downsizing took place so theres no short-term motivation to downsize beyond long-term company health. quote:
I worked for General Motors for several years - and one way that catering to employees to a large degree re: Benefits hurt them when they got to their elephantine size, was related to employees ever increasing demands - so that it eventually made them less competitive in the overall market place (I didn't work for the auto division, rather the divison that made Deisel engine locomotives and marine engines). Their cost of empolyee benefits drove them out of the marketplace in some instances entirely, and some divisions closed down entirely. a major quote I remember from Bill Ford when he took over and the big three laid off tens of thousands a few years back: Ford had to lay people off to compete with Japan and Europe, because 51 cents to the dollar went to finacing retirement/healthcare and such, while in asia/europe, this was absorbed by the government, labor costs were much lower, and taxes still left the forigen auto's with a large net advantage over america. Also, When reasearching music a couple of years ago, I came across the Hedonic Pricing Model. Created by ford/GM to sell car stero's in the 50's. The idea was that people would pay 200 bucks for a 25 dollar car radio simply because they wanted one, and it was up to the manufacturer to set a price. This has been a major factor in the auto industries product development and R&D ever since. More so than Europe/Japan. Fast forward to the ninties. You read about how the push to get everyone into an SUV was because they only costed a fraction more to build but sold for 50% more. So they pushed SUV's, the market evloved, and they were left with no choice but to lay off and to buy out and neutur perfectly good cars like Saabs and Volvo's. Same idea in the seventies when people decided they didn't need a 6 ft long trunk. quote:
Re: The rest of what you said, IMO -No, they'd be coming in the form of more taxation, and also a much higher level, of bureucratic entanglement for governement doled benefits. Anyone who really believes that a government that cannot seem to balance a checkbook is going to be proficient at offerring these services to its voters and consumers, is IMO in for a sad wake-up call. Just because Government is inefficent doesnt mean it has to be. It's the bankers-hours theory of bussiness: don't offer the consumer good service if you can get away with offering them bad service and minimize how much they use services. That way both parties can go on saying the system is broken and win votes by promising to fix something they never get around to. Tell me why Manhattan, with such high property values and wealth, has four hour lines at the DMV and less than 20 tellers? because they can get away with it. Why do Immigration cases take so long to resolve? Because nobody really wants to fix the system, not because it cant be done. Why do non-jury leagle cases take so long? because every motion and application includes a 200 hundred or so dollar filing fee paid to uncle sam. Like you said, with the transportation system, if the money / political pressure is there, things tend to move much more quickly smothly and more efficently. socialism doesnt have to equal red tape and the american economy is in no way the most efficant mode of capitalism. quote:
Re: The rest of what you said, IMO -No, they'd be coming in the form of more taxation, and also a much higher level, of bureucratic entanglement for governement doled benefits. The form of more taxation would be up to voters/politicians: if voter numbers outweighed lobbying interests for once, the taxes could come fromt the majority of income, which is at the very top, and leave the 10% of money the other 90% of us have alone. and like I said, there doesnt have to be so much bearacratic entaglemtent: its a question of methods, not a question of feasablility. Personally, I'd outsource all of the govt's HR problems to the many private HR/logistics/filing firms that already exist (in america) to serve other big bussinesses. Companies could compete over doing things quickly and more effeciantly than the Fed and each other to get awarded annual contracts.
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