CDZ What Adversely Affects US Economic Quality Control?

Discussion in 'Clean Debate Zone' started by william the wie, Apr 8, 2017.

  1. william the wie
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    william the wie Gold Member

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    Another poster pointed out that trade deficits are a consequence of poor quality control. So why for the last 50 years has quality and to a lesser extent cost control been an endemic problem?
     
  2. DarkFury
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    DarkFury President/ USMB Gold Supporting Member Supporting Member

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    Companies pushed quantity over quality.
    Consumers were taught its more important to be the latest over durable.
    Consumers were also taught they NEEDED certain things like tires that sent air pressure to computers INSTEAD of drivers LOOKING at them.

    I think cars are the greatest example where smart drivers are replaced by smart cars. The American consumer is being taught to accept computers over brains and ability.
     
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  3. Onyx
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    Onyx Gold Member

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    No correlation.
     
  4. Xelor
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    Xelor Gold Member

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    You know, often enough, members on USMB say things that don't warrant being responded to. The notion that trade deficits are the consequence of poor quality control is one such thing. I don't even care if there's a correlation of some sort between the two. Correlation does not equal causality.
     
  5. william the wie
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    william the wie Gold Member

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    Actually in this case LBJ and Nixon created the basic problem with Guns and butter budgets that were constrained by wage and price controls in order to set off the Great Inflation of 1968-1982. The question is why haven't we reverted to the mean?
     
  6. Toronado3800
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    I will throw a bone to this other poster's point.

    People all the time buy things online instead of seeing them and inspecting them for quality. On flea-bay and the other site all you really get to compare is price and seller reputation. The reputation is left almost immediately after purchase, not the next year, or five years in.

    Is it the cause of the trade deficit? No. Does the advantage cheap imports have contribute, yes.

    Do we blame the internet? No.

    Consider the 2nd most expensive thing most of us ever want to purchase, cars. Folks were buying cheap imports well before their quality matched domestic automobiles.
     
  7. Picaro
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    Picaro Gold Member

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    Inflation didn't take off until the global oil and food crisis began hitting in Ford's term as President and into the end of the housing bubble bust under Reagan. All that inflation is still with us, never went away, so we're basically at the new mean levels now, at least when using long term wholesale gold price averages as a reference for lack of a better one. I'm not sure what you mean; we're in a cycle that prudence would dictate deflation, but too many interests are desperate to keep the inflationary cycles rising, because of the havoc that real deflation would cause.

    The Great Wave: Price Revolutions and the Rhythm of History: 9780195121216: Economics Books @ Amazon.com

    Waves of Economic Development - Wikipedia

    Much of the problem is easily fixed, but nobody wants to do it; take a cue from the ancient Jewish religious guidelines and do resets every few years where everyone adjusts their books and financial records back to more rational currency values. 'Jubilee Years' or something, I'll have to go look it up when I have time. Everybody rests their tallies to reflect real values again, and everybody stays on the same page relative to debts, equity, and inventory values. They did it every 50 years, but that was a much slower time; it can be speeded up for modern times to every 7 or 10 years.

    It's outright ridiculous to have situations like 20 and 30 year home mortgages and 6 year auto loans. My grandparents thought 3 year mortgages were edgy and 7 year ones completely insane..
     
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  8. Dragonlady
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    Dragonlady Designing Woman

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    You grandparents had 25 year mortgages where the interest rates never changed. Interest rates began changing in the 1970's to 5 year renewables.
     
  9. SyuzVR
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    SyuzVR Rookie

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    Hi everyone. I am a new member to this forum. Nice to meet you all.
     
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  10. william the wie
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    william the wie Gold Member

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