Tapsearch Com EditorRe-shoring - Reasonable Economics
July 10th 2010 20:41
Follow the journey of Ray Tapajna in the global economic arena
Reasonable Economics and Automatic Stimulus Packages
My main work experience was in the computer industry. I was part of every computer generation and evolved into a trouble-shooter supplyer for several major manufacturers including some in China. I helped jump-start the Cat Scan and the computerized typesetting industry. I wrote on error recovery codes related to disk storage and saved government accounts alot of money while adding more efficiency in their operations as result.
I worked at several factories while going to college and was a set up man for three assembly lines just after graduating from high school. I came from a small business background and have more than fourty years in my own businesses dating back to my teenage years. I was a U.S. Army Transportation Officer specializing in ocean shippping and later was with international cargo airlines. I established a freight service for a major international passenger airline too.
From this perspective, I have challenged Free Trade since 1992 and have pointed to its inherent flaws since at Ray Tapajna Chronicles and Tapsearching the Flat World
It was always obvious to me that Free Trade had very little to do with world trade as historically defined and practiced . It is mainly about moving production from place to place for the sake of the cheapest labor practices and the least amount of regulations and standards. It also provides a way for companies to escape taxes that supports society as a whole. It is now proving to be a total failure across the board as our economies based on making money on money instead of making or growing things are burning away.
During the first stimulus debate under President Bush, Federal Reserve Chairman Ben Bernanke told Congress the best way to stimulate the economy is to buy " domestically produced goods." However his advice was ignored and the stimulus packages failed. The same applied to President Obama's stimulus programs.
( see ...
Rush Limbaugh could have saved the world
Feb 2, 2009 ... Bizarre Politics Reports: Rush Limbaugh could have altered the course ... Fed Chairman Ben Bernanke said it all when he told Congress the best way to stimulate the economy is to buy "domestically produced goods". This says it all. ... There were so many factors that have dragged us down in the last ...
Ben says buy USA and Rush Limbaugh could have saved the world - Link )
None of this would be needed if the U.S. followed reasonable economics from the beginning. Value added economies work best in local balanced geopolitical settings where values are grown and economies recycled from the raw product stage up through about 5 to 7 levels to the retail or end user stage. Then the cycle repeats itself as the products are consumed.
Now local economies are realizing what they lost due to Free Trade and are promoting shopping a local enterprises. Some towns are shunning big box stores finding that only 16 percent of the dollars spent at big box chain stores stay in the community while locally owned businesses keep more than 32 percent of the dollars in town, by buying from local enterprises. Following this further, the same applys for manufacturing or growing the goods. The community even enjoys more dollars flowing back into the community this way. Now money spent at retail quickly vanishes to the places were the products are made and where the investments reside.
Now new studies are proving that re-shoring represent better values than imported components. Here is what a major consulting house says about it.....
"Reshoring is bringing back work, parts or tools that will finally be used in North America," Moser explains. "In other words, we're not saying that you should make everything here and ship it to China to assemble. We're saying if you have an end component that is sold into the North American market or assembled into a product at a North American factory, or a tool that's used in North America, and you're now having that work done overseas, to evaluate the total cost of that subassembly or tool in the States versus overseas. We believe you will decide more should be sourced here."
Harry Moser and his colleagues show all that it takes to make a component a good TCO - The Cost of Ownership. They cite all the elements involved including material, labor, capital depreciation, direct product cost, overhead, profit, freight - standard and expedited, inventory carrying costs, additonal quality management and control, end of life obsolete inventory, additional proto type costs and non price TCO. They get into the extra cost of packaging and the need to cover unexpected expediting costs too which happens so often when manufacturing is subject to many changing processes and timing.
Of course this was always the right way but the U.S. Federal Government chose to sponsor the moving of production outside the U.S.A. starting in 1956 and with the Globalist Free Traders controlling governments and the investment communities, it is a difficult task to correct what went wrong.
"Re-shoring" Manufacturing Jobs back to the U.S. should be the major priority in any stimulus package but the elite Free Trader Globalist still ignore their massive mistake.
Manufacturing experts demonstrates the reak cost overall of a component sourced in from China when all things are considered. We also add to this overhead the cost to our environment due to long haul ocean, air, rail and truck shipping with all the protective packaging required. In addition to this, the environmentalists forget about all the regulations that are ignored in dirty manufacturing facilities abroad. There are no walls in the sky that protect us from this.
This all brings me back to the time I set up three assembly lines for oil furnaces. When the orders slowed down, one or all assembly lines were shut down for a time and the assembly workers took over making the parts so that none of the workers would have to be layed off. In those days inventory was something that gained in value as time went by and not subject to heavy taxation. This was common sense economics. Somewhere along the way we lost it.
As the saying goes, it is better to give an person a fishing pole than the fish.
That is what the U.S. did with the Marshall Plan when it restored economies in Europe and Asia after World War Two.
Now Free Trade forces subsistent living farmers to lose their livelihood while massive transnational corporations take over using government subsidies. It is a giant money game that will never work.
Reasonable Economics and Automatic Stimulus Packages
My main work experience was in the computer industry. I was part of every computer generation and evolved into a trouble-shooter supplyer for several major manufacturers including some in China. I helped jump-start the Cat Scan and the computerized typesetting industry. I wrote on error recovery codes related to disk storage and saved government accounts alot of money while adding more efficiency in their operations as result.
I worked at several factories while going to college and was a set up man for three assembly lines just after graduating from high school. I came from a small business background and have more than fourty years in my own businesses dating back to my teenage years. I was a U.S. Army Transportation Officer specializing in ocean shippping and later was with international cargo airlines. I established a freight service for a major international passenger airline too.
From this perspective, I have challenged Free Trade since 1992 and have pointed to its inherent flaws since at Ray Tapajna Chronicles and Tapsearching the Flat World
It was always obvious to me that Free Trade had very little to do with world trade as historically defined and practiced . It is mainly about moving production from place to place for the sake of the cheapest labor practices and the least amount of regulations and standards. It also provides a way for companies to escape taxes that supports society as a whole. It is now proving to be a total failure across the board as our economies based on making money on money instead of making or growing things are burning away.
During the first stimulus debate under President Bush, Federal Reserve Chairman Ben Bernanke told Congress the best way to stimulate the economy is to buy " domestically produced goods." However his advice was ignored and the stimulus packages failed. The same applied to President Obama's stimulus programs.
( see ...
Rush Limbaugh could have saved the world
Feb 2, 2009 ... Bizarre Politics Reports: Rush Limbaugh could have altered the course ... Fed Chairman Ben Bernanke said it all when he told Congress the best way to stimulate the economy is to buy "domestically produced goods". This says it all. ... There were so many factors that have dragged us down in the last ...
Ben says buy USA and Rush Limbaugh could have saved the world - Link )
None of this would be needed if the U.S. followed reasonable economics from the beginning. Value added economies work best in local balanced geopolitical settings where values are grown and economies recycled from the raw product stage up through about 5 to 7 levels to the retail or end user stage. Then the cycle repeats itself as the products are consumed.
Now local economies are realizing what they lost due to Free Trade and are promoting shopping a local enterprises. Some towns are shunning big box stores finding that only 16 percent of the dollars spent at big box chain stores stay in the community while locally owned businesses keep more than 32 percent of the dollars in town, by buying from local enterprises. Following this further, the same applys for manufacturing or growing the goods. The community even enjoys more dollars flowing back into the community this way. Now money spent at retail quickly vanishes to the places were the products are made and where the investments reside.
Now new studies are proving that re-shoring represent better values than imported components. Here is what a major consulting house says about it.....
"Reshoring is bringing back work, parts or tools that will finally be used in North America," Moser explains. "In other words, we're not saying that you should make everything here and ship it to China to assemble. We're saying if you have an end component that is sold into the North American market or assembled into a product at a North American factory, or a tool that's used in North America, and you're now having that work done overseas, to evaluate the total cost of that subassembly or tool in the States versus overseas. We believe you will decide more should be sourced here."
Harry Moser and his colleagues show all that it takes to make a component a good TCO - The Cost of Ownership. They cite all the elements involved including material, labor, capital depreciation, direct product cost, overhead, profit, freight - standard and expedited, inventory carrying costs, additonal quality management and control, end of life obsolete inventory, additional proto type costs and non price TCO. They get into the extra cost of packaging and the need to cover unexpected expediting costs too which happens so often when manufacturing is subject to many changing processes and timing.
Of course this was always the right way but the U.S. Federal Government chose to sponsor the moving of production outside the U.S.A. starting in 1956 and with the Globalist Free Traders controlling governments and the investment communities, it is a difficult task to correct what went wrong.
"Re-shoring" Manufacturing Jobs back to the U.S. should be the major priority in any stimulus package but the elite Free Trader Globalist still ignore their massive mistake.
Manufacturing experts demonstrates the reak cost overall of a component sourced in from China when all things are considered. We also add to this overhead the cost to our environment due to long haul ocean, air, rail and truck shipping with all the protective packaging required. In addition to this, the environmentalists forget about all the regulations that are ignored in dirty manufacturing facilities abroad. There are no walls in the sky that protect us from this.
This all brings me back to the time I set up three assembly lines for oil furnaces. When the orders slowed down, one or all assembly lines were shut down for a time and the assembly workers took over making the parts so that none of the workers would have to be layed off. In those days inventory was something that gained in value as time went by and not subject to heavy taxation. This was common sense economics. Somewhere along the way we lost it.
As the saying goes, it is better to give an person a fishing pole than the fish.
That is what the U.S. did with the Marshall Plan when it restored economies in Europe and Asia after World War Two.
Now Free Trade forces subsistent living farmers to lose their livelihood while massive transnational corporations take over using government subsidies. It is a giant money game that will never work.
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