Posted on 07/03/2019 11:24:29 AM PDT by central_va
Rush is spreading false economic assertions again. Labor is NOT the biggest manufacturing cost. For example cars, even if union labor is used, the cost per vehicle is only 8% on average. I posting this to prove that we are selling out US workers for a few pennies on the dollar!!
(Excerpt) Read more at rushlimbaugh.com ...
Where is “energy” in the pie chart. Energy is a huge cost of manufacturing products made of steel, aluminum, plastics.
Is energy folded into “materials”?
Also, government regulation is not shown as an identifiable cost of manufacturing. Why? To keep it a secret?
They were lumped together, IMO industry and corporatists don't want us to know what actual labor costs per item. The info is hard to find.
I am looking at MACRO economics, at the entire cost of manufacturing including the social, political as well as economic impact of offshoring.
My main question is whether the loss of an industrial base worth the savings? To answer that you have to judge how much is saved. There are myopic idiots that say if it is one penny more then off shore it. Some also think if an American makes $40.00/hr then each item he makes will cost $40 more. They are morons. I am not saying you are like that.
For the most part manufacturing overseas in the 3rd world saves very little and but the damage to the USA's manufacturing infrastructure and know how is enormous. IMO the USA should to keep the corporate penny pinchers hands out of the international cheap labor cookie jar by coercing them through tariffs to make it here. Just like every other country does. I say that without shame or reservation.
Marx was a free trade to the nth degree.
Boy are you ever right!
It is so troubling to drive through small towns and cities and see the decay. You can tell what USED to be there.
In my own way I try to do my part by telling people to ‘buy local; bank local’, and doing the same myself.
But I agree with you 100%. It is such a shame it has come to this.
Limbaugh wouldn’t even acknowledge that the destruction of Smallville, USA is a problem. He is clueless in so many ways. That guy needs to get out of the mansion and see the USA in his Tesla.
Do you really think the accountants at the big auto companies cannot figure out how to make a profit?
And labor costs are generally included with any annual report.
There are lot lot more sink costs involved with manufacturing anything. And the cost of buildings and machinery are depreciated over a long time—but they cost a fortune to replace or upgrade.
And while robots are making manufacturing more efficient there are a ton of expenses with engineering those that never existed in the past.
Your “feeling” about the cost of labor can be prone with a few hours of digging through annual reports.
But I trust the guys beholden to the shareholders: they are going to find every possible penny to cut off the cost.
Your premise is pretty superficial. The costs associated with off shore production includes the tax basis of the property, the costs of labor and associated taxes and benefits, plus savings on the costs of materials.
As an American I want them to make a profit with American labor. There is nothing wrong with that. A tariff is the only way to protect both union and nonunion workers. I want this because ALL of the other countries we trade with do this and a free trader nation in a mercantilist world will soon to be a poor agrarian nation. We need a tariff to protect us from the borderless greedy fools. This is why I voted for Trump.
It was several years ago. I will see what I can find if I do a search on the Freeper’s name and the subject matter. I’ll keep you posted!
“So Limbaugh pulled his “most of the cost is labor” out of his copious arse. I’d agree. He needs a staff to do research. He does misinform the public often.”
Clarification required here. Did Rush say most of the cost of producing a vehicle is labor? That would infer that out of 100%, the single highest cost at 27% is labor. The other 73% is made up of different items, none exceeding 27%.
All costs are ultimately energy consumption costs. Money is data. The data ultimately reflects energy use. If the average employee or robot costs $50,000 per year, that labor source consumes on average $50,000 per year in energy, mostly indirectly. To increase in wealth we need either cheaper energy or ways of using less of it.
Thanks but don’t go to a lot of trouble for me.
Take care and have a good afternoon.
Actually it was about sports shoes and he stated labor is the biggest part of manufacturing, like it was a given. It is not a true at all.
The price of robots and automation falls about 10% per year. At some point in the not too distant future, robots will be cheaper than most human labor. That's a good thing until the robots become sentient and decide they don't need so many pets anymore.
Regulation. Taxation.
Labor is a pretty major portion of the cost of items that are labor intensive to manufacture.
Taxes (property and payroll) are a pretty high part of the cost of the “overhead” included in that 27%. Energy costs are also a major overhead factor too.
In the UMC (Unified Manufacturing Cost) which breaks out the the labor hours at every value-add step, will give a more accurate detail about the true cost.
I suspect that the percentage of labor including overhead and taxes is higher than 27%. I would say it’s closer to 36%
Also add in the cost of labor perks.
I must shamefully admit that I am completely ignorant to Cafe standards. Are they Government mandated standards? If so that speaks to more of the problem of the Government regulating and costing consumers more.
Besides clothing, name one thing that is massed produced and labor is greater than 20-30%? POST DATA.
Post data.
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