
Originally Posted by
stephkyle7
production costs are relatively fixed. The cost of Raw steel on the market is the same for anyone who intends to use it , as is petroleum, as is most every commodity, the fluctations in pricing do not dramatically effect the business model.
Gas doesnt shoot up a dollar or two and back over night.
the only significant controllable expense that a buisness can manipulate is payroll and benefits.
I run a business. I know I have to achieve a 35% margin after all costs are accounted for, to continue my profit and growth.
If I trend below 35% margin, I cant negotiate new prices for my goods, I cant lower my rent, If I want to be competitive I cant just play with prices, so all I can do is lower benefits and payroll to maintain that 35%.
Now becasue it is a small operation, and I only have a few employees ,it is easy to absorb the lower margins I see from time to time without hurting my employees, but I do so at my discretion.
The same holds true with Huge companies as well.
addition doesnt change becasue you add 10 zeros, it always the same.
the difference between what I do ,and what you seem to be supporting buisnesses be able to do is pass all the "pain" from poor sales, or fluctations on to the workers.
what that does in fact is force them into the public safety nets for things they can no longer afford.
Once again who is paying for that? YOU and I.
why is that so difficult a concept to embrace?
Your insistence in quality of life increasing is also a matter of perspective.
You look at GDP and PER capita, I look at real income and wealth.
Why? becasue income determines what you can afford, you seem to feel that having disposable utensils means we are living better.
It takes Two incomes to support what one used to, again why do you struggle with that undestanding.
and once again, you refuse to acknowledge any information provided you like a child plugging their ears and saying Laa,laa, laa, I dont hear you.
why do you refuse over and over to address the studies and reports Ive provided you for months?
lastly, two thing would be needed for your economic model to work,one an absence of corruption, which we have about 2000 years of history proving that ,that will never happen, people lie, people cheat, people commit frauds, commit larceny , commit insider trading, rig prices, gouge, and a whole list of other things which throw your model out of whack, insisting that somehow we can correct all of that when we havent been able to for...ever, is manical.
second, as ive pointed out to you, at least 10 times, and youve yet to address it with any coherent dispute,
If you are selling a item and you are being undersold,and all things being equal, raw material costs, shipping costs, overhead, inventory carrying, apr on the loans youve taken, then how are they underselling You?
Is it the shoemakers elves coming in over night and spinning gold for you?
No, it is through payroll costs.
so when China, or India are paying .50 cents an hour, to be competeitive only two thing can happen, our wages go down, or theirs go up...thats it.
and that is what we are on the way to so explain to me why it is good for america for all the pain to fall on the workers while the owners lie cheat and steal their way to prosperity?
Wealth disparity has grown geometrically, and through out this recession profits have grown and the 1% have increased their holdings...