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To: SeekAndFind
When Henry Ford wanted to sell Model Ts he raised his workers salaries high enough they could afford one. Maybe the chicoms should try that, although it would probably end their communist dictatorship at the same time.

Too much money to the people is something people like Obama can't stomach. The money begets economic freedom which in turn leads to real freedom

The American economy runs on two things, cheap food and cheap energy. That's why the Joker has to take those down. If you have cheap food, you don't have to spend all day trying to figure out where you are going to get enough to eat. And cheap energy allows you freedom of movement to do what you want, as long as you have the money to do it — So you get a job.

4 posted on 08/24/2009 2:04:07 PM PDT by Tarpon (The Joker's plan -- Slavery by debt so large it can never be repaid...)
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To: Tarpon
When Henry Ford wanted to sell Model Ts he raised his workers salaries high enough they could afford one.

Henry Ford was a genius. He invented the modern production line. Unfortunately, he thought he was a genius in economic theory as well. Instead of cutting prices and nipping competition in the bud, he kept prices at a level that allowed others to compete and overpaid his workers, while starving R&D. The result was the Edsel and the long slide into the No. 2 position in Detroit, and No. 5 worldwide, behind Hyundai. Detroit did well for a while (and took the nation along for the ride), not because it overpaid union workers - it did well because it had a monopoly on the knowledge of how mass production lines are best run. Unfortunately for Detroit, other countries eventually figured out how to run mass production lines effectively and efficiently. Ultimately, by overcharging consumers/starving R&D by the amounts necessary to overpay union workers, Detroit sowed the seeds of its own demise.

If overpaying workers (relative to the market) were the route to prosperity, China under communism would be the largest economy in the world. It's only now, under capitalistic policies that allow the market to set wages, that China is finally registering rapid economic growth. It's time to let go of the myth that anyone is owed a good living just because... Assembly jobs that don't even require a high school diploma to perform add very little value. To pay these people college graduate wages isn't just nuts - it's unsustainable, and will drive any company that pays these wages into bankruptcy.

16 posted on 08/25/2009 10:14:07 AM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always)
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