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nuckolls.bob(at)cox.net Guest
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Posted: Fri Sep 28, 2007 4:07 pm Post subject: Responsible Consumerism in a Free Market |
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Quote: | > When and if the Great Transition happens for the
> Chinese people, it could be very EXPENSIVE in both
> human capital and facilities. What we would hope
> for is that their remaining ability to produce and
> sell in a free market makes them an attractive
> source of goods and services for all of us. The
> more stuff we can buy from them then, the faster they
> will recover. Buying lots of useful stuff is the
> finest form of foreign aid we could offer.
Good points, Bob. I like to think that the "Great Transition" will be as
bloodless as the Soviet Union's. The Chinese system is currently a "kinda
sort of" representative government in that they do vote for their local
representative to the communist party.
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Those are good seeds. There are no doubt others.
Quote: | If you enjoy "Good Value", take a riverboat cruise up the Yangtze river to
and through the Three Gorges Dam while the exchange rate is still
favorable. Highly recommended.
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I'll take that under advisement. Thank you. I know my
wife would love to do it too.
I've had some direct email flack about departing
from subjects germane to our mission. I had to
remind them that my original posting concerned the
results of an inquiry into return on investment for
some batteries offered by a local store. But even
my response to the political retort was do depoliticize
the discussion by focusing on fundamentals of
economics and human behavior.
I think opportunities offered to us by Harbor
Freight and others go directly to the goal of maximizing
return on our investment of $time$ in crafting an
airplane. This is especially true when many of the
tools, while perhaps not adequate for the 40-hr/wk
professional would do nicely for the construction of
one airplane. I bought one of their air-nailers to
re-nailed my sub-floors and built one fence.
If I never use it again, it's paid for itself!
Like the Japanese suppliers of 50 years ago, the
folks at Harbor Freight are a fledgling activity
with great potential. The thing we can do best for
each other and for Harbor Freight is accurately
quantify value received for any of their products
we might find useful. It can only benefit us both.
Bob . . .
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longg(at)pjm.com Guest
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Posted: Sat Sep 29, 2007 5:04 am Post subject: Responsible Consumerism in a Free Market |
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As suggested throughout there are many ways to grow a free market
society. China first needs to deal with its social factors first. Case
and point Burma. Whether it's a new health network or books for babies
they have a lot to do. Don't use the US as a perfect standard as we have
so many of our own issues. Remember, the US was also an experiment and
we are still dealing with the fact.
If you visit China on business as I have it doesn't take long to realize
they have the drive and capitalist mentality to succeed economically.
There are so many issues they cannot possibly cover them all overnight
as their economy grows 7-10% a year.
We must realize that China is lesson in economics and statistics. In the
last five years US imports from China have grown by 200 billion dollars.
That is a hell of a lot of circuit breakers. I'd have to look but I'll
bet the last time the US economy grew that fast as a percentage was
probably WW2. Don't think for one minute we didn't have quality issues
then either. We still do, Ford repeats at least one quality/economic
failure every year.
At a time when growth is forcing quality litigation in China, their
quality is improving in many areas. Soon they will be shipping cars to
the US. Much of the tooling and machining now used in China is purchased
from Germany - yes the inventors of quality.
Statistically you could put numbers too it. 1 in 100,000 widgets failed
in 2000 while 7 in 400,000 now fail in 2007. There is no way around the
recent quality incidents in China as their exposure has become so great.
Same deal with flying. If you increase your flying time 500 hours a
year, you are much more likely to have an accident. China is suffering
growing pains. Yes, ok - I'll admin their ethos are not up to our
standards, but we don't live there we just buy their stuff - you don't
have too. Buy your stuff from Germany and pay twice as much. I'm not
convinced Americans really want quality over price in every case. Don't
forget as a child you probably licked on the window sill covered with
lead paint as you struggled to walk.
Through it all we have supported China with our purchases. Total exports
now exceed 400 million while the US sends a measly 60 million to China.
A chunk of that 60 is Buicks. Buick sold more units in China last year
than here in the old US. And no, it's not all about China protectionism;
we've given up our drive to be the creators of the world, so its time to
pass the ball. Why do you suppose Home Depot's true home office is in
Beijing?
A greater danger to our livelihood is the fact that China is holding
about 400 billion in US bonds which it can leverage as needed. Worse,
this money is making its way around the world to buy much needed
materials and energy from Russia et al. When that money is dumped back
on the US economy, poof there goes inflation.
We can all avoid some of this havoc buy spreading out your buying habits
as well as you spread out your 401k investments. Buy your next wrench
from France or Germany (they don't really need it either) or someplace
other than China.
Did you know that just last year China passed France in total GNP. Now
how could that be? Little old France who makes 260 kinds of cheese and
97 brands of wine would give up its 4 place position in the economic
world to China over a few widgets.
--
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