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To: JasonC
If instead those plants would not make profits at all, then you might find it hard to just go do it. But in that case, it is not greed on the part of capitalists that is responsible for plants shutting down, but actual competition and the real economic costs involved. And the article's charges are slanderous nonsense.

No one is denying the real economic costs involved, nor is it entirely a matter of corporate greed, though that greed is certainly a factor, you must admit. Many things are done by our government that oppose our industries and stifle our businesses, which has been calamitous as well.

Take the taxation of inventory as an example- Business used to roll it's profits into inventory to escape being taxed at the end of the year. Since the capital was invested, but the return was not realized, inventory stock brought the money across into the new year, where it would then be sold to turn the part back into capital.

But the government caused inventory to be taxed starting in the late 70's in order to close the loophole. What came from that is a double taxation, as the part was taxed as inventory, and then taxed as profit when it was sold.

What evolved from that was an inevitable and drastic reduction of inventory, and the invention of an horrible system called JIT ("Just in Time") manufacturing, where the part was made when ordered.

This, in and of itself is bad enough, but when tied to planned obsolescence schemes, it forces profit where none was before, by ensuring the consumer would have to buy a whole new unit when a breakdown occurred, as there were no parts in stock, and the new product's parts no longer fit the old (often on purpose).

So you see, while the example began as a regulation on the part of the government, and can be directly attributed as such, business also became culpable and found an advantage by which it could infinitely redouble it's profit- much to the dismay of the consumer.

94 posted on 01/06/2008 5:29:36 PM PST by roamer_1 (Vote for Frudy McRomsonbee -Turn red states purple in 08!)
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To: roamer_1
and the invention of an horrible system called JIT ("Just in Time") manufacturing, where the part was made when ordered.

JIT. Also know as: OSWO (Oh Swoe)- Oh S#!+, We're Out!

101 posted on 01/06/2008 5:41:28 PM PST by null and void (So many of us know so little about so much that effects the outcome of our lives.)
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To: roamer_1
But the government caused inventory to be taxed starting in the late 70's in order to close the loophole. What came from that is a double taxation, as the part was taxed as inventory, and then taxed as profit when it was sold.

You really should demand a refund of the tuition for your accounting class.

137 posted on 01/06/2008 10:39:42 PM PST by tdscpa
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