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Showing posts with label supply side economics. Show all posts
Showing posts with label supply side economics. Show all posts

Friday, May 28, 2010

The Not So Complex Successes and Failures of Technology & Automobiles

As you may or may not know I work on a lot of cars. All kinds of Cars! Most times things are predictable or at least understandable in terms of how and why automobiles are put together. Competition has written a whole new rulebook for innovation and economics when it comes to automobile manufacturing. Most times if I take apart a headliner or a door panel its quite easy to put it back to its original condition with of course some notable exceptions. Ironically those exceptions are not typically done for innovation but for economics. Companies who have prospered the most seem to be those who have carefully studied where to cut corners in the least notable manner to the end consumer. Let me give you a few examples that are changing the way your vehicle is put together and how it is quite apparent that some car manufacturers have been more clever than others.

The use of plastic has become extremely important to some manufacturers by substituting it for metal parts with screws. In most cases this has been a success, especially where companies like Honda or Toyota use more twist and pull plastic push parts that hold firmly in metal frames. I find German automobiles have indeed went to more technology and robotics than apparently the Japanese or American made automobiles, although it also creates unique problems. For instance if I have a part placed in by a robot prior to a windshield being put in then I also do not allow for the possibility of making changes without the windshield being removed to do things in a natural sequence when making changes to say a headliner. Often specific brands or types of companies use similar ideas to put things together. For instance German cars like Mercedes and VW may use some similar ideas, while KIA and Hyundai, Honda and Toyota etc. American manufactures ironically may use ideas from foreign manufactures but not so much say between Ford and GM.


This all sounds like a lot of "what does it really matter", but as I've mentioned from my personal experiences companies that can best hide these cheaper parts in places that are seldom noticed seem to be the best at getting higher consumer satisfaction and getting the resulting higher profits. For instance Trucks do not all now come with completely metal liners in wheel wells, but does the customer care -- probably not.


Personally I think the German concepts have a lot of long term value by using technology as in the video below, however they too can get caught in the web of unintended consequences when certain types of body work must be done and there are no easy solutions to a human correcting what a robot originally manufactured. Toyota recently has shown that things can begin to unravel, when problems are not anticipated but most likely created to save production costs.





On the other hand some companies may be losing because they simply haven't made necessary changes while other manufacturers are cutting those corners in ways that cheapen the product, but rely on the adage "What the customer doesn't know won't hurt them." This of course means you shouldn't be surprised when some little things of your must prized automobile are surprisingly oddly put together by a machine, made of cheap plastic or simply no longer there, because the prize ultimately in the long run goes to the manufacturer who does it the best and at the lowest cost.

Tuesday, November 25, 2008

New World Order of Global Economics

Presenting Public Policy initiatives that recognize their importance in a world dominated by Global Economic Forces (Globalization) should be a goal of the Obama administration... Globalization in the real world without American Public Policy Constraints will undermine the American ideologies especially in regards to Human Rights, Civil Rights and Environmental Issues. This is not only an issue which is changing the American landscape, but will result in a less authoritative and less bona fide United States constitution. During the past thirty years Americans have become mesmerized by Globalization philosophies that impose Free trade at all costs as something close to a moral choice. Nationalism, Religious Ideologies, National Pastimes and Professional Sports support these concepts with unfettered voracity. The Laws of Supply and Demand have been so firmly ingrained in the culture that to sway from these results by suggesting that Democratic values can approve of socialistic programs or programs that support the general welfare of our citizens are in fact treasonous. Our Constitution was established by ideas about Democratic freedoms not pure capitalistic and economic motives.

The General welfare statement can be interpreted to include citizens or immigrants who want to be citizens who must swear to the Constitution. In the words of Aristotle; “In a Democracy the Poor will have more power than the rich because there are more of them, and the power of the majority is supreme.” The nature of capitalistic wealth as the primary goal of a government approves in the objective of winning the game of attaining the most wealth as the “highest” directive. This is similar to Darwin’s natural selection and professional sports in that it elevates the very best or most prominent, while suggesting that weakness and lesser performing constituents be discarded by some Divine Right or natural selection. This divine selective process demands and justifies the highest price. The divine directive suggests this very fair process ultimately results in everyone else prospering too. Most Religions especially Christianity suggests otherwise in that the poor and needy should in fact be cared for not discarded. Ironically, the religious right even the Catholic Church is a primary constituent of the Greed philosophy as it is the better of two choices of a Democrat or Republican. Their real divine directive which promotes the necessity to support the Greed pundit might very well be protecting the “rights of the unborn”. The reality is that both our political parties at the federal level are purveyors of the greed philosophy and realize they can control the population by “guilt” whenever necessary by bringing up these moral issues on demand. For this reason “greed” contributes to more moral decline by undermining the ‘general welfare” to such a state that the “moral issues” the right fundamentalist propose to take such a stand upon are viewed by the “public” as more about “greed and power” than conviction.

Many groups who have other ideas about protecting and supporting the general welfare on issues such as Global Warming, the environment or Health care are deplored as socialist deviants seeking to take away the divine rights of the greed protecting pundits. Sadly many of these pundits must rely on the programs and policies they want so much to deny to everyone else. Their programs for the military or education or whoever they work for are reasonable while, huge deficits become acceptable because we can have the benefits of a tax that no one ever has to pay. However, we know these deficits actually protect the wealth of the rich while placing the debt on a majority of Americans for generations to come.

Anyone who has listened to Limbaugh or numerous other right wing pundits during the past twenty years can testify to their oath that Politics and Social Welfare should be at the mercy of those who are the best because they after all deserve the most. Professional Athletes, Giant Hedge Fund managers or Multi Billionaires provide us with incentive to achieve and admire their greatness. This achievement and ability to push the work ethic and success at all cost requires that all Americans especially the poor recognize their place and to oppose the philosophy of Greed is in fact Un-American. According to these right wing pundits, the true American or Great American is someone who is willing to give it all for the Greed philosophy in that we must protect Warren Buffett’s wealth, Tiger Woods Skills and Michael Milken’s Genius at all costs. The millions of Americans who are in foreclosure are expendable, while bailing out large banks is the greed version of doing the greater good. If competing in a Globalized world means selling assets to other nations that have no intention or belief in our ideologies then Global economics rules. Human rights in China, The Middle East or India as well as starvation in Africa become acceptable while we are willing to protect the ideas of Globalization and Greed at the expense of the moral document we call the American Constitution.

We truly do have a New World order that is indeed more important than our Constitution, and the leaders of our nation have sworn to this new Government by declaring their absolute allegiance to the power of this new Globalization God in this New World Order of Economics.

Wednesday, January 09, 2008

An Economic Philosophy maintained through Democratic Demise


The Eagles Long Road out of Eden --Is the US Empire building?

This week I’m traveling from Indiana to Arizona for business. It’s amazing the massive amount of building and economic progress that has taken place especially in our major cities. Two of the most expansive from a visual perspective, which I traveled through are Little Rock AR and Dallas TX. Like so many major cities keeping the infrastructure to accommodate the many people living and working in areas around the cities is a challenge Local and state governments who are challenged to find creative ways to fund all the necessary programs and projects.

The question: Why when things look so good are there any questions about supply side economics (Reaganomics) espoused by the Shawn Hannitys’ and Rush Limbaugh’s of the world. Do these commentators represent a smaller number of people who want to maintain the status quo by pointing to these great successes or are they the actual representations of America? The housing crunch is a perfect example of people acting upon the dilemma’s put before them. If I want to be part of the new greater America I must learn to get my piece of the pie out of a belief in an all or nothing philosophy. Today there has been an explosion in entrepreneurship, who were and also are more likely to go bankrupt. Entrepreneurship requires us to spend more for start up and take in a lower income than may be expected or perceived. This scenario of spending first, budgeting later has spread to all sectors of our economy starting with government spending, to corporations and to individuals.

The founders of the constitution did not have to be concerned with today’s media. Had the King of England possessed such power he may have reacted by constantly bombarding the colonists with his points of view to maintain his royal splendor. This would include protecting his supporters (health care and large corporations) who benefited from government regulation and government inaction. If one believes the US is in Iraq to protect our oil and financial interests then we must also conclude that we are indeed empire building.