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The difficulty in making/keeping one's cost structure efficient is
often more political than anything. Too many people refuse to believe
you have to close every single steel mill in Pittsburgh, or every auto
plant in Michel Moore's precious Flint, or, for a European example,
every coal mine in the UK. But you do.
Speaking of Moore, an interesting perspective on the problem comes up
in Moore's documentary The Big One, where Moore tries to convince Nike
CEO Phil Knight to build a sneaker plant in Flint. (There are currently
NO sneaker factories in the US.) Knight says he won't, because "<font
size="2" face="Arial, Helvetica, sans-serif">Americans don't want to
make shoes".
What he meat by that
was that the costs of hiring and training new workers were very high,
because in the US workers won't stay in jobs like that for very long. I
recommend the movie, because, in addition to Moore's brilliant
propaganda filmmaking, some of the other side of the story to come
through, whether intentionally or not.
Regards
DanG
Navtej S. Nandra (RR) wrote:
Efficiency is a good thing. And its
impact is felt much better when you are dealing with a closed system.
And our system was psuedo-closed, not because of protectionism, but
because competitor nations were dealing with their own limitations,
e.g., communism in China.
But it is hard to make your cost
structure efficient enough to compete with a 2-3X unit cost
differential with competing nations ...
Personally, where you can't beat
'em, join 'em. Focus on US industry and services where we have an
edge / equality / monopoly and own industries overseas where the
difference is too much to overcome. Like the Japanese do with
automobiles.
In the distant term, hopefully, the
world will be one big nation anyways.
N
----- Original Message -----
<blockquote
>
<div
>From: <a
title="TheGonch@xxxxxxxxxxx" href="">Dan
Goncharoff
<div
>To: <a
title="realtraders@xxxxxxxxxxxxxxx"
href="">realtraders@xxxxxxxxxxxxxxx
<div
>Sent:
Wednesday, May 28, 2003 3:36 AM
<div
>Subject:
Re: [RT] Tax Cuts
How about improving efficiency? It has worked for most of the last
200 years...
Regards
DanG
Navtej S. Nandra (RR) wrote:
<blockquote cite=""
type="cite">
Not suggesting we change
interest rates or tax policy or free trade ... but definitely
suggesting that we should do something meaningful that makes
investment in US industry a better opportunity than outsourcing.
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