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Archive for the ‘Economics’ Category

The Business of Guns

September 14, 2013 15 comments

I was asked to post this here, and get some comments about it from the throngs of (3-4) readers here.

Business of Guns

I thought it was a very fair piece, with some good information. Let me know what you think in the comments!

Another link, in case the picture itself doesn’t work:

http://www.onlinemba.com/blog/business-of-guns

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Never underestimate the cost effectiveness of lazy

December 14, 2011 6 comments

From an email, and various sites throughout the intertubes:

A toothpaste factory had a problem: they sometimes shipped empty boxes, without the tube inside. This was due to the way the production line was set up, and people with experience in designing production lines will tell you how difficult it is to have everything happen with timing so precise that every single unit coming out of it is perfect 100% of the time. Small variations in the environment (which can’t be controlled in a cost-effective fashion) mean you must have quality assurance checks smartly distributed across the line so that customers all the way down to the supermarket don’t get pissed off and buy another product instead.

Understanding how important that was, the CEO of the toothpaste factory got the top people in the company together and they decided to start a new project, in which they would hire an external engineering company to solve their empty boxes problem, as their engineering department was already too stretched to take on any extra effort.

The project followed the usual process: budget and project sponsor allocated, RFP, third-parties selected, and six months (and $8 million) later they had a fantastic solution — on time, on budget, high quality and everyone in the project had a great time. They solved the problem by using high-tech precision scales that would sound a bell and flash lights whenever a toothpaste box would weigh less than it should. The line would stop, and someone had to walk over and yank the defective box out of it, pressing another button when done to re-start the line.

A while later, the CEO decides to have a look at the ROI of the project: amazing results! No empty boxes ever shipped out of the factory after the scales were put in place. Very few customer complaints, and they were gaining market share. “That’s some money well spent!” – he says, before looking closely at the other statistics in the report.

It turns out, the number of defects picked up by the scales was 0 after three weeks of production use. It should’ve been picking up at least a dozen a day, so maybe there was something wrong with the report. He filed a bug against it, and after some investigation, the engineers come back saying the report was actually correct. The scales really weren’t picking up any defects, because all boxes that got to that point in the conveyor belt were good.

Puzzled, the CEO travels down to the factory, and walks up to the part of the line where the precision scales were installed.

A few feet before the scale, there was a $20 desk fan, blowing the empty boxes out of the belt and into a bin.

“Oh, that,” says one of the workers — “one of the guys put it there ’cause he was tired of walking over… “every time the bell rang”.

At least I hope it’s a joke. Otherwise they need better engineers. Promote that lazy guy!

Categories: Economics, Funneh

A letter from a boss

October 27, 2011 1 comment

I can see the guy writing this at his desk in the morning, right after he sent off his quarterly taxes.

StrangePolitics: MUST READ – A Letter From The Boss – Actual Company!

Please vote who you think will serve your interests the best. However, let me tell you some little tidbits of fact which might help you decide what is in your best interest. First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story.

This back story is often neglected and overshadowed by what you see and hear Sure, you see me park my Mercedes outside. You’ve seen my big home at last years Christmas party. I’m sure all these flashy icons of luxury conjure up some idealized thoughts about my life. However, what you don’t see is the back story.

This is the setup, read for the details. However, he wraps it up quite nicely:

So where am I going with all this? It’s quite simple. If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV payment and for your child’s future. Frankly, it isn’t my problem any more. Then, I will close this company down, move to another country, and retire.

You see, I’m done. I’m done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

While tax cuts to 95% of America sounds great on paper, don’t forget the back story: If there is no job, there is no income to tax. A tax cut on zero dollars is zero. So, when you make decision to vote, ask yourself, who understands the economics of business ownership and who doesn’t? Whose policies will endanger your job? Answer those questions and you should know who might be the one capable of saving your job. While the media wants to tell you “It’s the economy Stupid” I’m telling you it isn’t.

If you lose your job, it won’t be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the Constitution, and will have changed its landscape forever. If that happens, you can find me in South Caribbean sitting on a beach, retired, and with no employees to worry about.

He can’t tell you outright who to vote for, but he sure can try and smack you upside the head with some stone cold facts.

Read the whole thing, it’s worth it.

Edit: Notes this is not from Mr Crowley, and it’s from 2009, not current. I think the message still rings true, but you decide for yourself.

http://www.chrismartenson.com/forum/real-letter-ceo-his-employers/11293
http://www.campaignforliberty.com/blog.php?view=7915

Categories: Economics, Political

How did a 90% tax bracket affect the rich?

September 21, 2011 5 comments

Honest question, as I don’t know. How did the rich deal with this, in the 40’s and 50’s? I know the rich existed.

Did they:

  • Hide it
  • Pay it
  • Other
  • ?

    Tax rates, 1913-2011
    Tax Foundation: U.S. Federal Individual Income Tax Rates History, 1913-2011
    Interesting note, while the top rate in 1950 was 91%, the lowest rate was 20%. So they collected a lot more from the entire spectrum, not just the rich. Adjusted for inflation, the 91% rate was on incomes above $1,862,072. The 20% rate was up to $18,621, also inflation adjusted.

    Categories: Economics, Political