Clarifications on the Case for Free Trade

Ludwig von Mises Institute ^ | 4/12/04 | Paul Craig Roberts

[Toddsterpatriot]

It's the grand total of all labor costs from the very beginning of product to the very end (when it's on the shelf.)

I'm not saying that 70% is wrong. I'm just saying that if it's only at 15% in each stage, it doesn't matter how many stages you have, it will only be 15% at the end.

[Poohbah]

Not to mention the 'indirect' costs of labor in administration, sales, etc.

Ahem!

Much of that indirect labor is associated in some fashion with (drum roll, please)...

REGULATORY COMPLIANCE!

Add in the amount of "defensive lawyering" anyone in business in this country needs, and government accounts for a HUGE chunk of the final cost of the product.

BTW, my current gig is fixing code the Indians couldn't get right. We have full order books. This job's going to go bye-bye when corporate America realizes that they're paying twice for the same code: once to get it written incompetently, and the second time (at a much higher markup than they would've spent to begin with) to get it fixed.

[afraidfortherepublic]

One of our customers in Pewaukee informed us this week that 63 machine shops have closed within a 15 mile radius of his company in the last 2 years.

[hchutch]

Gee, who'd have thought that CYA and compliance could cost so much?

You think that common sense was endangered or something...

Then again, the ephedra ban seems to make that quite obvious...

[GOP_1900AD]

"Much of that indirect labor is associated in some fashion with (drum roll, please)... REGULATORY COMPLIANCE!" So do something about it. You invest more energy in shooting down nationalists and those who want to beef up defense than you do trying to make things more friendly here in the states for business. Invest your energy more wisely.....

[ninenot]

It's using a different method, but a legitimate one.

I didn't invent this. A CPA with a manufacturing firm invented it. As usual, they have 19 different ways to come up with the answer they want...

But if it's five steps at 15%/step, that seems to be 75% to me...

[Toddsterpatriot]

But if it's five steps at 15%/step, that seems to be 75% to me...

I would have to disagree.

1st step $10, $1.50 labor.

2nd step $20, $3.00 labor.

3rd step $50, $7.50 labor.

4th step $100, $15.00 labor.

5th step $1000, $150.00 labor.

Final cost $1180, $177 labor.

Look at it this way, if 15% a step times 5 steps =75% then 85% a step times 5 steps = 425%.

I'm just a math stickler. :^)

[Toddsterpatriot]

You invest more energy in shooting down nationalists and those who want to beef up defense than you do trying to make things more friendly here in the states for business.

When those nationalists want to increase government powers which damage the economy and the nation's defense, then I think that is a fine place to invest your energy.

Just because we disagree with their mistaken economic ideas doesn't mean we want to weaken America.

[Poohbah]

So do something about it.

I am. And I note that your FIRST instinct is to not do anything about regulatory compliance burdens except to INCREASE them. Your first impulse about taxes is to INCREASE them. That's what YOU are doing about it.

[rdb3]

For example, that agenda might be the break up of the USA, or it might be creating lots of demand for welfare.

Oh no you didn't. You realize that I can take this statement a number of ways, don't you?

Show 'em my motto!

[GOP_1900AD]

Don't be so sure. I would love to decrease / elminate EPA, OSHA, ADA, and other BS burdens put in place since the late 1960s. Oh and don't get me started about Affirmative Action. That stuff is all a no brainer. Sowell nailed all of it. In essence, I find the regulatory environment which existed prior to the late 1960s appealing. Much less regulation regarding Leftist social agendas, and somewhat more regarding the long term national security and sovereignty of the USA. Not bad.

[rdb3]

When those nationalists want to increase government powers which damage the economy and the nation's defense, then I think that is a fine place to invest your energy.

That's when you call them what they really are: fascists. I'm not talking about it as mindless epithet. I'm talking about the real definition of fascism. With the amount of government control that they wish upon us, that's precisely what it is.

Show 'em my motto!

[ninenot]

Well. Your math is compelling.

My only guess is that the 'cascade' method INCLUDES indirect labor (admin, sales, etc.) plus the burdens thereof, which are p/r taxes and bennies.

Think about it this way: the value of iron ore didn't really change--only the labor applied to the iron ore (plus some machine, materials, and energy charges) made the ore into an auto-body fender.

[Toddsterpatriot]

indirect labor (admin, sales, etc.) plus the burdens thereof, which are p/r taxes and bennies.

Plus regulations etc. Thanks, just trying to get to the truth.

[Toddsterpatriot]

That's when you call them what they really are: fascists

I'm with you brother.

Rather than get the corporations fighting on the same side, they insist on destroying them.

[1rudeboy]

Did you notice the "-" symbol before my figure? :)

[1rudeboy]

Don't you know by now that Rude.. is an expert in economics, trade, real estate, unions, business, as nauseum? [sic]

Most obviously, I am rude. Piss off.

[1rudeboy]

In prior posts, you acted as though you knew ALL ABOUT Industrial Relations.

I suppose working for the largest steel-framing manufacturer in the U.S., and dealing with Teamsters every day counts for nothing?

[ninenot]

not playing the Race Card, are you?

[ninenot]

Well, you're a student with a $100K net worth, and now all of a sudden you work for a steel-framing mfgr.

So you DO know all about everything, eh?

Which is it--student/heir, or actual working stiff?