joether
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quote:
ORIGINAL: DarkSteven
quote:
ORIGINAL: farglebargle
Person A may get one less TV
But Person B, C, and D all have good paying jobs.
A single TV will support three jobs? If a TV costs $400, let's assume $100 goes to manufacturing, using a factor of four markup (which used to be typical some thirty years ago - I assume it's still that currently). Then for a single $70K manufacturing job (wages and benefits), 700 TVs will not be bought. To support a factory of maybe 400 workers, that's some 3 million televisions that got removed from the US economy per year.
That's a lower standard of living.
Your idea is flawed in places, DarkSteven. We live in 2011, not 1921. Most cars are not put together as a single piece but rather as part of an assembly line. Do I need to explain Henry Ford and the company he created? Or the business practice used to assemble cars? Lamborghini's are actually hand made and not so much assembled like those found in General Motors or Honda. So, the workforce will be sent up much differently between a Lamborghini's production verse that of something from GM.
You take the idea that the end cost of a product, is the justification of everything that came before it. If that was the case, no new company would never enter into existance. A new automobile company has a staggering high 'iniital entry' into the market that is primarily manufacturing heavy, but needing skilled workers. Most companies do not make a first year profit (or second or third). It takes them awhile to 'get going' as it were to produce its product/service. Unfortunately, the market will not accept a $1,900 TV that has more or less the same specifications as one that can be purchased for $350. Hence, the company must be accurate in selling its product at the market cost, NOT, unit cost (i.e. cost to create the unit).
As you employ workers, they take on additional costs just to go and do their job. Food, gas, transportation, etc, are all nessisary elements (A). Also, there are also costs not related directly to the job that also must be paid (B). Finally, what is left over is open to investing (C) and spending (D). A, B, C, and D, are areas that money can and will be directed towards. This money will be directed to entities that will 'fill up with' production/service levels and need (if it wants more profit) to hire additional workers to fulfil the demand (remember this word). Those additional workers will each have the A, B, C, and D elements like the first batch of workers, and thus, create addtional production/services being used.
The problem with our economy isn't one of supply. There is plenty of supply, but not much demand for it. Its a basic economics model. As demand for a tv, cheeseburger, or even a Lamborghini grows, so to will the profit to be had from the D/S model. Creating jobs will create demand which will thus, increase profit potential. An as silly as it sounds, creating jobs will lower the unemployment rate.
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RE: "Made in USA" is the solution to our econ... - .gif){kind=avatar}
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