[identity profile] mintogrubb.livejournal.com
A German firm , Siemens, has won a contract to build new trains for British railway operating companies.

http://www.guardian.co.uk/commentisfree/2011/jul/05/bombardier-job-losses-train-wreck


There are understandable reactions of anger and dismay.
thousands of british Jobs will be lost and Bombardier, the British train making company that lost the bid, is even threatened with having to close the entire plant.

The unions are up in arms and a country that is reeling with job losses will gt several thousand more people ending up on welfare if a major employer in an already hard hit region goes under.

Well, I think that is what the Americans call ' Pork barrel politics' isn't it?

The idea that A politician can win votes by making sure that the folks in ~his~ neck of the woods do ok.
Or even ~hers~ as the case might be.

I fail to see the connection with pork , but yes, if I was a politician in Derby, where Bombardier has got its main plant employing tens if not hundreds of thousands of my constituents, then surely , I would want to bend the ears of the national Government, and make sure that ' our boys' got the government contract - it is what governments are for, aftr all, to secure any unfair advantage that we can...

And yet I cn't help thinking to myself...It's supposed to be about economics. We should buy the best value for money we can , not just bend the rules to suit ourselves. Let's suppose a German firm did something similar to us- gave a contract to a local firm to keep the money in Germany - would there not be howls of protest?

So, do we believe in fairness or don't we? Is it a moral issue, or just about national survival?
Should the government be congratulated on a brave decision to ' do the right thing , or is this political suicide? Why has the politicians , who have been been rather venial in the past, suddenly decided to play fair in spite of the cost to their votes and the countries interest? Do they know something we don'y i wonder...?

Though it pains me to say it, I think that the Germans would probably deliver good quality trains on time and on budget- and that is what the country really needs, as opposed to another hand out.

I shall doubtless be accused of being impractical, of being a hard faced bastard by anyone who is looking at the prospect of unemployment. And yet, I honestly believe that the government has done the morally correct thing, and not just taken the most expedient option.

Yes, I know that it will put thousands of workers on the dole - but do we have to pay people to make second best trains just to keep things ticking over? I suppose I am not he sort of person cut out to be a professional politician, or ii would automatically answer 'yes'.
[identity profile] malasadas.livejournal.com
For more than 100 years, mass production has been something of the pinacle of our modern industrial age. And for good reason. Mass production techniques have not only been able to produce an astonishing array of consumer goods, they have brought the price of such goods ever downward so that more and more people can afford to buy and enjoy them. Mass production has allowed industry to meet greater and greater demand, and is easily responsible for much of the prosperity in the modern world. It was and remains a breakthrough that changed the world.

And its era may be replaced in our lifetimes... )
[identity profile] jerseycajun.livejournal.com
I actually watched Food Network's Great food truck road race with some interest when it debuted this year. Previously I hadn't been aware that food trucks had been experimenting with gourmet style food and a lot of it I would have loved being present at the time to sample some of it, had I been near any of them.

It turns out that this trend is partly fueled as development of the recent economic downturn as chefs and restaurateurs find that it's much cheaper to reach customers by food truck than spending upwards of a million dollars to buy/rent/renovate inner city floorspace. Makes sense. If I lived in a city, based on some of what I saw on the show, I'd be insane not to try it myself.

Now it seems Chicago has made it virtually impossible to operate a food truck in the city. You can't open up food product for preparation in the vehicle, so you have to prep everything before you leave meaning any product which relies on a fresh prep to be palatable is off the menu, and you can't park within 200m of a brick-and-mortar restaurant/food establishment.

Naturally, the brick-and-mortar establishments in Chicago like the status-quo very much.

From the article: 'The food truck concept is "a quaint idea," says Dan Rosenthal, owner of Sopraffina Marketcaffe, a chain of Italian restaurants in Chicago. "But when you get right down to it, it creates an unlevel playing field."'

This to me, is BS. What it does is indicate a changing marketplace in the food preparation industry, and that for those settled into it already, change is uncomfortable. I can understand that it certainly must be frustrating having to deal with a changing market climate, but this is precisely the kind of change which keeps an industry sustainable. Having to deal with less resources means having to become more resourceful. For the time being, it seems the city is firmly on the side of the brick-and-mortar team.

The article quotes a representative from the city council as defending the rules with the following:

"A spokeswoman for the city says Chicago's rules are for health and sanitary reasons."

...which seems a lot more like a blanket statement of meaningless reassurance unless there's some rather specific justification the article left out of the quote. And it would have to be quite a justification, as numerous other major urban centers don't seem to find it necessary to be this restrictive to achieve those ends.

So I pass it to the general audience here to add some of your own insight into this. Is this an example of an established and perhaps connected segment of an industry using the bureaucracy as a shield against changing market forces (not to lean on stereotype too much, but this is Chicago)? Who wins in this scenario? If the food trucks can make restaurant quality food for less, and the city is essentially restricting that option away, won't the average person simply choose eating out less overall than frequenting the brick-and-mortar restaurants more?
[identity profile] pastorlenny.livejournal.com

Almost all of the discussions I am hearing about economics and politics seems to center on the various kinds of "lever-pulling" the government can do: tax policy, money supply, interest rates, etc.

While I don't doubt that this lever-pulling has a real impact on economic activiity, it doesn't seem to me to be what the creation of wealth is really about.  We add money to the economy and stocks go up.  Big deal.  It's just an anticipation of inflation -- not the actual creation of actual value.

Conversely, we might reform healthcare and education more aggressively.  Sure.  But it doesn't help to educate people for jobs that don't exist.  And physical wellness, whether we like it or not, is a function of wealth.  Drugs would cost money even if we nationalized pharma.   

If we look back through history, in fact, we will see that wealth has always been created be actual stuff: spices and silk, slaves and cotton, war production and automobiles, highways and consumer goods, routers and porn.

So I'm wondering what it is that the U.S. economy is actually going to produce to create wealth, jobs, tax revenue and human delight.  What will a 24-year-old community college graduate living in Dayton, Ohio be doing for a living four years from now?  Anyone have any ideas?

And can anyone tell me why this is not a more central topic of discussion generally?


[identity profile] allhatnocattle.livejournal.com
What we have here is a failure to communicate I'm not sure this was said, but it was certainly implied and thought to be understood. See the first bail-out was a one time deal to help out a institutional corporation in trouble because of some extraordinary circumstances.

The situation is not unlike a child who needs cash to pay the bills after loosing a job. Parents often (not always)will help a kid out, sometimes straining the parents own ability to make ends meet. But the rub occur the second time said child needs help... especially so soon after the first loan.

I'm at a loss here. Maybe we need a new way of doing things.

Harley Davidson did really well after they changed the basic way they did business. Instead of mass producing motorcycles, like every other motorcycle company, they became the largest custom bike builder in the world. Want a 883 Sportster? What kind of fenders do you want? Which logo do you want painted on the tank? Etc.

GMC's Hummer division went from filling orders for armies to public sales. So instead of building 500 Hummers because Canadian Army ordered 500 Hummers, they built thousands of Hummers to sit in dealers lots until sold. This is stupid business. What does it cost to store a fleet of unsold SUV's, insure them against theft, paid for security and basically watch them depreciate in value? I suppose this works in a hot economy, but there is always one model that just doesn't sell so well. Maybe several.

So back to Fanny Mae, the mortgage people. How about people saving up for 20-30years to pay cash for a dream home. Remax wouldn't like that. Neither would Century21. But something has got to be done... not just about Fannie Mae, or Freddie Mac, but about they very way in which mortgage business is conducted. People spent a decade or more just paying off interest, then borrow against estimated value of home in today's market for tomorrows sale. Do you understand how dumb that is?

Aboriginal peoples know exactly how dumb that is. So many signed treaties had government buy NDN lands at prices to be negotiated later. Europeans would never sign deals on the loosing side of the negotiation like that. But then they buy houses on long term mortgages assuming value appreciation. As we all know realestate is the safest investment. Although it's funny how many seem to loose their homes.

On the other hand small tweaks might be the answer. The shortage of supply and high demand in some places (Japan) makes real estate stupid expensive. The idea of 100-150 year mortgages transferable down through generations is catching on to other areas.

Of course changing the fundamentals of how real estate is conducted has about as much chance of reinvention as reforming the health insurance industry. Slim to none. There are two sides that both agree there needs to be changes. Those who want fundamental change (liberal-socialists) and those who think that with a bunch of small tweaks it can still work (conservatives). I don't know who's got a better idea, but I assume I do.
[identity profile] gunslnger.livejournal.com
E-Transportation Jump-Start: Coalition Seeks to Pave the Way for Electric Vehicles

Although the widespread adoption of electric vehicles and their related infrastructure has always suffered from chicken-and-egg syndrome, Nissan and FedEx, along with several utilities and technology companies have formed a coalition to break the stalemate. At a press conference Monday in Washington, D.C., the Electrification Coalition announced its formation as well as a new 130-page report on the dangers of oil dependence, the benefits of electric vehicles, and ways to overcome roadblocks that have kept these vehicles from being deployed en masse.

Wait, so this isn't government-sponsored? Evil corporations are doing this on their own without incentives from government? Things might get moving without the central planner telling us to? I'm shocked.
[identity profile] redheadrat.livejournal.com
So after months of preparations, billions of loans from European governments, promises to US taxpayers to sell parts of GM to payback its debts, GM decides that economy is good enough to keep Opel.

So now GM is left with Opel and Vauxhall, roughly 10,000 Brits, Germans and other EU workers get pink slips and German government wants it's money back before the end of the month since they financed Opel in its preparation for sale.

I don't know the details of the deal, but normally there would be a charge to be paid by the party breaking the deal in addition to the loss of trust between parties.

I am curious what other promises the government is going to negate in the future in industries that it took over or is planning to take over.

http://www.huffingtonpost.com/steve-parker/gm-cancels-opel-sale-what_b_346479.html