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Posted by Tom Gardner on April 13, 2008, 9:33 pm
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<snip>
>> Among other things, the unions priced themselves out of jobs by demanding
>> more for the job than it was worth.
>>
>> Mike
>
> And what's it worth, Mike? The Chinese charge $0.80/hour. Is that what it's
> worth?
> --
> Ed Huntress
The basic three factors in the cost of a good or service are: Price, quality and
service. If the good or service is of the correct quality, meaning that is
fulfills the requirements, and the service also is acceptable then the price
becomes the determining factor. If the Chinese place a good in the market that
fulfills the market's need, the "worth" of that good is exactly what the market
pays for it. But, that doesn't translate to setting the cost of labor. You
can't make that claim Ed. What sets the cost of the $.80/hr. labor is that's
what the market for labor in China is in that region, at that time.
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Posted by Ed Huntress on April 14, 2008, 12:38 am
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>
> <snip>
>
>>> Among other things, the unions priced themselves out of jobs by
>>> demanding more for the job than it was worth.
>>>
>>> Mike
>>
>> And what's it worth, Mike? The Chinese charge $0.80/hour. Is that what
>> it's worth?
>> --
>> Ed Huntress
>
> The basic three factors in the cost of a good or service are: Price,
> quality and service. If the good or service is of the correct quality,
> meaning that is fulfills the requirements, and the service also is
> acceptable then the price becomes the determining factor. If the Chinese
> place a good in the market that fulfills the market's need, the "worth" of
> that good is exactly what the market pays for it. But, that doesn't
> translate to setting the cost of labor. You can't make that claim Ed.
> What sets the cost of the $.80/hr. labor is that's what the market for
> labor in China is in that region, at that time.
But that still leaves open the question of what the "correct" wage is for
the US, the one the unions should be asking for so as to not "price
themselves out of a job."
How about it, Tom? What should labor be asking for? Maybe, say, three times
what they make in China? That ought to cover the transportation costs and
leave a little margin. Should labor be asking for $2.40/hour?
That may be a little high, though. Why should consumers in the US pay more
than they can buy Chinese goods for?
What's the wage that US unions should be asking for, to avoid pricing
themselves out of competition with China? Do you have a "correct" wage in
mind?
--
Ed Huntress
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Posted by Tom Gardner on April 14, 2008, 5:39 pm
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>
>>
>> <snip>
>>
>>>> Among other things, the unions priced themselves out of jobs by
>>>> demanding more for the job than it was worth.
>>>>
>>>> Mike
>>>
>>> And what's it worth, Mike? The Chinese charge $0.80/hour. Is that what
>>> it's worth?
>>> --
>>> Ed Huntress
>>
>> The basic three factors in the cost of a good or service are: Price,
>> quality and service. If the good or service is of the correct quality,
>> meaning that is fulfills the requirements, and the service also is
>> acceptable then the price becomes the determining factor. If the Chinese
>> place a good in the market that fulfills the market's need, the "worth"
>> of that good is exactly what the market pays for it. But, that doesn't
>> translate to setting the cost of labor. You can't make that claim Ed.
>> What sets the cost of the $.80/hr. labor is that's what the market for
>> labor in China is in that region, at that time.
>
> But that still leaves open the question of what the "correct" wage is for
> the US, the one the unions should be asking for so as to not "price
> themselves out of a job."
>
> How about it, Tom? What should labor be asking for? Maybe, say, three
> times what they make in China? That ought to cover the transportation
> costs and leave a little margin. Should labor be asking for $2.40/hour?
>
> That may be a little high, though. Why should consumers in the US pay more
> than they can buy Chinese goods for?
>
> What's the wage that US unions should be asking for, to avoid pricing
> themselves out of competition with China? Do you have a "correct" wage in
> mind?
>
> --
> Ed Huntress
>
I think the labor wage should be whatever the market will bear. We have
huge advantages in automation, quality, service and that "Made in USA"
sticker still means a lot. I'd like to pay higher wages than I do now, and
my wages are better than most in the industry. The "correct" wage is one
that the workers can prosper the most while the company can prosper too.
The union mentality is: "Lets cut the goose open and get ALL the gold."
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Posted by Larry Jaques on April 15, 2008, 8:52 pm
Please log in for more thread options On Tue, 15 Apr 2008 21:12:09 GMT, with neither quill nor qualm, "Tom
>If I had it to do all over again, I sure wouldn't be in manufacturing! I
>see a number of friends that have cushy Government jobs making 5 times what
>I make and they are ready to retire in their 50s. Only a fool fights the
>battles I do and get so little appreciation or even understanding that I'm
>looking out for peoples' best interests.
Yeah, but YOU can sleep at night and have built up GOOD karma.
--
It is better to wear out than to rust out.
-- Bishop Richard Cumberland
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Posted by Tom Gardner on April 16, 2008, 2:23 am
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> On Tue, 15 Apr 2008 21:12:09 GMT, with neither quill nor qualm, "Tom
>
>>If I had it to do all over again, I sure wouldn't be in manufacturing! I
>>see a number of friends that have cushy Government jobs making 5 times what
>>I make and they are ready to retire in their 50s. Only a fool fights the
>>battles I do and get so little appreciation or even understanding that I'm
>>looking out for peoples' best interests.
>
> Yeah, but YOU can sleep at night and have built up GOOD karma.
>
> --
> It is better to wear out than to rust out.
> -- Bishop Richard Cumberland
I'm tired, my feet hurt and my fingers are numb. I've traded my health for
business ownership! I'll eventually sell the firm and have just enough for
health care and a good Irish funeral!
I could have joined some union and spent all my time figuring out how to cheat
and steal from my boss!
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>> more for the job than it was worth.
>>
>> Mike