CDZ Help me chaise the wasted money

Discussion in 'Clean Debate Zone' started by Toronado3800, Oct 22, 2017.

  1. Toronado3800
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    Toronado3800 VIP Member

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    There is a hole in my logic here I need pointed out.

    Let's say Bob buys a something (Lenovo laptop?) made in China for $600. The retailer makes a few bucks, Amazon makes some, Fed Ex makes some. Lenovo of China makes some, the Chinese workers make some. Perhaps $50 of his $600 make it back to support the Chinese economy leaving the U.S. with $550 left to spend.

    Now lets say Bob's taxes go up $600 and corrupt government officials blows it evenly on legal marijuana, strippers and whores. Some pot farmer gets $200, some stripper gets $200, some whore gets $200. America still has $600 and hopefully Bob can get a used laptop from his mother.

    The tax increase has accomplished nothing. Sure we'd be better off paving a road, arming an aircraft carrier or building a football stadium but the dollars took another turn around our economy.

    What do I need to know or think about?

    What percentage of the average American's salary goes to "an enemy" economy vs what percentage of government spending does?
     
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  2. Vastator
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    Vastator Gold Member

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    Psst. A healthy chunk of that "government spending" is the enemy economy...
     
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  3. Dekster
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    Dekster Gold Member

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    A good chunk of the cost of electronics is in the licensing fees for all the intellectual property on board. Let us say that $200 of that $600 goes to Silicone Valley. Silicone Valley doesn't spend that money, so why not take a chunk of it to provide your prostitute health insurance?
     
  4. Xelor
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    Xelor Gold Member

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    Why do you want to put wasted money into a sofa? That you do may well be the problem with your reasoning. LOL
     
    Last edited: Oct 23, 2017
  5. Xelor
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    Xelor Gold Member

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    • Macro and micro economics
    • Pricing strategy
    • Retail supply chain business processes
    • Internal control procedures
    • Sound reasoning
     
  6. flacaltenn
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    flacaltenn Senior Mod Staff Member Senior USMB Moderator Gold Supporting Member

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    The trap of "cheap labor" overseas was a passing fad. Most of the laptop money goes to Lenovo and the component suppliers. Who are largely western companies. The parts however are largely now made in Asia. What goes to "enemy economies is the labor to MAKE all those thousands of components..

    The decision to manufacture in Asia caused massive ripples in the whole supply chain that USED to feed the production of goods. We no longer HAVE a supply chain to make such things. It was poorly executed.

    OTH -- you cannot have a major modern economy and "service" each other to death. Changing America into a service economy (hookers, drugs, rehabs, govt) is also a death trap. You NEED trade. But you need have companies retain CONTROL of the action. If you're not MAKING GOODS, you're doomed.

    Even Asia realizes that the "cheap labor boom" was temporary. What America SHOULD have been doing is designing towards 21st century manufacturing. So they could KEEP their production close to home.

    Those that innovate but don't MAKE -- soon forget how their products work. We learned that in 60s/70s with Japan. And we're stupid enough to keep making the same mistakes. We were supposed to be the brains -- THEY got their hands dirty. However, Japan didn't NEED us after a couple decades. Because THEY KNEW more about the products than the owners of the Intellectual property.

    We don't even want to be "the brains" part of it anymore. We're pretty much doomed with that attitude.
     
  7. fncceo
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    fncceo Gold Member

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    Chaise the money.

    [​IMG]
     
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  8. Xelor
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    Xelor Gold Member

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    ??? What? There is and must necessarily be some place that wants good and services and other places where the labor cost of producing/providing those things is lower than in the places where those goods/services are demanded. What changes over time is the location of the lower cost laborers and the magnitude of difference in high labor cost areas and low labor cost areas. "Cheap labor" is, after all, a qualitatively relative term not a precise quantitative one.

    That's not so at all. What the U.S. dominates in selling these days is innovation and ideas, intellectual capital, rather than the results of rote physical labor, human physical labor.
     
    Last edited: Oct 24, 2017
  9. Toronado3800
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    Toronado3800 VIP Member

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    It may show I was thinking about work. That was probably a unique mistake
     
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  10. task0778
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    task0778 Silver Member Supporting Member

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    Start up a pot farm, marry a chinese stripper whose sister is a whore. Win-win-win.
     
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