Re: Nike again
Your book's title appears familiar "The End of Economics". Have you seen "The End of Economics? Ethics and Disorder of Progress" by Cristovan Buareque? It might be useful. Anthony D'Costa U of Washington On Fri, 4 Mar 1994, Michael Perelman wrote: Yes, Nike is a marketing company. Keep in mind that as companies rely more and more on fixed capital to replace labor, they, in effect, increase their ratio of marketing to production. For example, automobile manufacturers become mere assemblers and marketers. More and more of the value added is in oursourced parts. With respect to John Maurice Clark, much of his concern about overhead costs was implicit in his fathers work. Although J.B. and many of the leading lights of economics wrote text books on perfect competition, they recommended policies based on the idea that large fixed capital costs made competition destructive. I have a piece in the Summer issue of the Journal of Economic Perspectives (in Joe Persky's column) on this subject. It is also in a new book that I am completing called The End of Economics. Michael Perelman -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 916-898-5321 916-898-6141 messages E-Mail [EMAIL PROTECTED]
Nike again
Yes, Nike is a marketing company. Keep in mind that as companies rely more and more on fixed capital to replace labor, they, in effect, increase their ratio of marketing to production. For example, automobile manufacturers become mere assemblers and marketers. More and more of the value added is in oursourced parts. With respect to John Maurice Clark, much of his concern about overhead costs was implicit in his fathers work. Although J.B. and many of the leading lights of economics wrote text books on perfect competition, they recommended policies based on the idea that large fixed capital costs made competition destructive. I have a piece in the Summer issue of the Journal of Economic Perspectives (in Joe Persky's column) on this subject. It is also in a new book that I am completing called The End of Economics. Michael Perelman -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 916-898-5321 916-898-6141 messages E-Mail [EMAIL PROTECTED]
Nike, again
Sometimes the automated prelies don't work too good. -- Forwarded message -- Date: Wed, 2 Mar 1994 15:17:46 -0500 From: Mail Delivery Subsystem [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: Returned mail: User unknown - Transcript of session follows - While talking to curlew.cs.man.ac.uk: RCPT To:[EMAIL PROTECTED] 550 Unknown local user 'PEN-L%EDU.CSUCHICO.ECST.BOBBY' 550 [EMAIL PROTECTED] User unknown - Unsent message follows - Date: Wed, 2 Mar 1994 15:16:06 -0500 (EST) From: Doug Henwood dhenwood Subject: Re: Running further with those shoes To: [EMAIL PROTECTED] They may be a relatively small portion of overall costs, but they're the easiest ones to cut. Can't cut debt service, land costs, the price of raw materials, etc., by 90% the way you can by moving from a unionized plant in Ontario or a non-unionized one in Tennessee to one staffed by transient teenage women in Malaysia. Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) On Wed, 2 Mar 1994 [EMAIL PROTECTED] wrote: If labour costs were such a small proportion of overall costs why relocate production at all? Maybe like a lot of "global goods" there's a world wide marketing price policy so the price is perhaps falling in places like German (to counteract revaluation of Mark or recession) but not in the US. I'd opt for closer scrutiny of the extent of the market and the price of running in different currency areas. I'm bored with running myself. Penny Ciancanelli Manchester
Re: Nike, again
I am not sure what Doug means by "transient" teenage women. Malaysia is largely an Islamic nation, with other ethnic groups like the Indians and Chinese. By transient it implies that family structures are loose and women are significantly mobile. I think both of these implied characterizations of Malaysian society are false. While it is true that female wage rates are lower in South East Asia and other developing economies than in North America being "transient" has little to do with them. Capitalist development has brought about social changes but at the same time time strengthened indigenous movements, witness the Bumiputra policies in Malaysia. Anthony D'Costa U of Washington on top of that it is women are who are On Wed, 2 Mar 1994, Doug Henwood wrote: Sometimes the automated prelies don't work too good. -- Forwarded message -- Date: Wed, 2 Mar 1994 15:17:46 -0500 From: Mail Delivery Subsystem [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: Returned mail: User unknown - Transcript of session follows - While talking to curlew.cs.man.ac.uk: RCPT To:[EMAIL PROTECTED] 550 Unknown local user 'PEN-L%EDU.CSUCHICO.ECST.BOBBY' 550 [EMAIL PROTECTED] User unknown - Unsent message follows - (5.65c/IDA-1.4.4 for [EMAIL PROTECTED]); Wed, 2 Mar 1994 15:17:46 -0500 Date: Wed, 2 Mar 1994 15:16:06 -0500 (EST) From: Doug Henwood dhenwood Subject: Re: Running further with those shoes To: [EMAIL PROTECTED] Cc: [EMAIL PROTECTED] Message-Id: [EMAIL PROTECTED] Mime-Version: 1.0 Content-Type: TEXT/PLAIN; charset=US-ASCII They may be a relatively small portion of overall costs, but they're the easiest ones to cut. Can't cut debt service, land costs, the price of raw materials, etc., by 90% the way you can by moving from a unionized plant in Ontario or a non-unionized one in Tennessee to one staffed by transient teenage women in Malaysia. Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) On Wed, 2 Mar 1994 [EMAIL PROTECTED] wrote: If labour costs were such a small proportion of overall costs why relocate production at all? Maybe like a lot of "global goods" there's a world wide marketing price policy so the price is perhaps falling in places like German (to counteract revaluation of Mark or recession) but not in the US. I'd opt for closer scrutiny of the extent of the market and the price of running in different currency areas. I'm bored with running myself. Penny Ciancanelli Manchester
Re: Nike, again
Damn, folks are so sensitive. By transient I meant high labor turnover. Sorry. I didn't mean they were irresponsible or sluttish or anything like that. Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) On Wed, 2 Mar 1994, Anthony D'Costa wrote: I am not sure what Doug means by "transient" teenage women. Malaysia is largely an Islamic nation, with other ethnic groups like the Indians and Chinese. By transient it implies that family structures are loose and women are significantly mobile. I think both of these implied characterizations of Malaysian society are false. While it is true that female wage rates are lower in South East Asia and other developing economies than in North America being "transient" has little to do with them. Capitalist development has brought about social changes but at the same time time strengthened indigenous movements, witness the Bumiputra policies in Malaysia. Anthony D'Costa U of Washington on top of that it is women are who are On Wed, 2 Mar 1994, Doug Henwood wrote: Sometimes the automated prelies don't work too good. -- Forwarded message -- Date: Wed, 2 Mar 1994 15:17:46 -0500 From: Mail Delivery Subsystem [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: Returned mail: User unknown - Transcript of session follows - While talking to curlew.cs.man.ac.uk: RCPT To:[EMAIL PROTECTED] 550 Unknown local user 'PEN-L%EDU.CSUCHICO.ECST.BOBBY' 550 [EMAIL PROTECTED] User unknown - Unsent message follows - (5.65c/IDA-1.4.4 for [EMAIL PROTECTED]); Wed, 2 Mar 1994 15:17:46 -0500 Date: Wed, 2 Mar 1994 15:16:06 -0500 (EST) From: Doug Henwood dhenwood Subject: Re: Running further with those shoes To: [EMAIL PROTECTED] Cc: [EMAIL PROTECTED] Message-Id: [EMAIL PROTECTED] Mime-Version: 1.0 Content-Type: TEXT/PLAIN; charset=US-ASCII They may be a relatively small portion of overall costs, but they're the easiest ones to cut. Can't cut debt service, land costs, the price of raw materials, etc., by 90% the way you can by moving from a unionized plant in Ontario or a non-unionized one in Tennessee to one staffed by transient teenage women in Malaysia. Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) On Wed, 2 Mar 1994 [EMAIL PROTECTED] wrote: If labour costs were such a small proportion of overall costs why relocate production at all? Maybe like a lot of "global goods" there's a world wide marketing price policy so the price is perhaps falling in places like German (to counteract revaluation of Mark or recession) but not in the US. I'd opt for closer scrutiny of the extent of the market and the price of running in different currency areas. I'm bored with running myself. Penny Ciancanelli Manchester
Nike, again
Sometimes the automated prelies don't work too good. -- Forwarded message -- Date: Wed, 2 Mar 1994 15:17:46 -0500 From: Mail Delivery Subsystem [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: Returned mail: User unknown - Transcript of session follows - While talking to curlew.cs.man.ac.uk: RCPT To:[EMAIL PROTECTED] 550 Unknown local user 'PEN-L%EDU.CSUCHICO.ECST.BOBBY' 550 [EMAIL PROTECTED] User unknown - Unsent message follows - Date: Wed, 2 Mar 1994 15:16:06 -0500 (EST) From: Doug Henwood dhenwood Subject: Re: Running further with those shoes To: [EMAIL PROTECTED] They may be a relatively small portion of overall costs, but they're the easiest ones to cut. Can't cut debt service, land costs, the price of raw materials, etc., by 90% the way you can by moving from a unionized plant in Ontario or a non-unionized one in Tennessee to one staffed by transient teenage women in Malaysia. Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) On Wed, 2 Mar 1994 [EMAIL PROTECTED] wrote: If labour costs were such a small proportion of overall costs why relocate production at all? Maybe like a lot of "global goods" there's a world wide marketing price policy so the price is perhaps falling in places like German (to counteract revaluation of Mark or recession) but not in the US. I'd opt for closer scrutiny of the extent of the market and the price of running in different currency areas. I'm bored with running myself. Penny Ciancanelli Manchester
Re: Nike, again
I am not sure what Doug means by "transient" teenage women. Malaysia is largely an Islamic nation, with other ethnic groups like the Indians and Chinese. By transient it implies that family structures are loose and women are significantly mobile. I think both of these implied characterizations of Malaysian society are false. While it is true that female wage rates are lower in South East Asia and other developing economies than in North America being "transient" has little to do with them. Capitalist development has brought about social changes but at the same time time strengthened indigenous movements, witness the Bumiputra policies in Malaysia. Anthony D'Costa U of Washington on top of that it is women are who are On Wed, 2 Mar 1994, Doug Henwood wrote: Sometimes the automated prelies don't work too good. -- Forwarded message -- Date: Wed, 2 Mar 1994 15:17:46 -0500 From: Mail Delivery Subsystem [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: Returned mail: User unknown - Transcript of session follows - While talking to curlew.cs.man.ac.uk: RCPT To:[EMAIL PROTECTED] 550 Unknown local user 'PEN-L%EDU.CSUCHICO.ECST.BOBBY' 550 [EMAIL PROTECTED] User unknown - Unsent message follows - (5.65c/IDA-1.4.4 for [EMAIL PROTECTED]); Wed, 2 Mar 1994 15:17:46 -0500 Date: Wed, 2 Mar 1994 15:16:06 -0500 (EST) From: Doug Henwood dhenwood Subject: Re: Running further with those shoes To: [EMAIL PROTECTED] Cc: [EMAIL PROTECTED] Message-Id: [EMAIL PROTECTED] Mime-Version: 1.0 Content-Type: TEXT/PLAIN; charset=US-ASCII They may be a relatively small portion of overall costs, but they're the easiest ones to cut. Can't cut debt service, land costs, the price of raw materials, etc., by 90% the way you can by moving from a unionized plant in Ontario or a non-unionized one in Tennessee to one staffed by transient teenage women in Malaysia. Doug Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 212-874-4020 (voice) 212-874-3137 (fax) On Wed, 2 Mar 1994 [EMAIL PROTECTED] wrote: If labour costs were such a small proportion of overall costs why relocate production at all? Maybe like a lot of "global goods" there's a world wide marketing price policy so the price is perhaps falling in places like German (to counteract revaluation of Mark or recession) but not in the US. I'd opt for closer scrutiny of the extent of the market and the price of running in different currency areas. I'm bored with running myself. Penny Ciancanelli Manchester
