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The Frog in the pot Economy.
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Jim
Posted 11/17/2009 09:11 (#927402 - in reply to #927323)
Subject: RE: Difference between Comparative advantage and extortion


Driftless SW Wisconsin

Thanks for the continued discussion Jon. A couple quick items:

1) On a quick look-up, only 11.5% or so of the US workforce are union members. I don't think we can use them as the whipping boy for the shipment of US jobs overseas. We can be very competitive in the US. But it is not easy and requires a longer term viewpoint. IF your focus is on the next quarter's earnings then you are not likely to invest in anything that may have a 5 or 10 year payback. Manufacturing is not quick and easy. I am concerned about engineering education in this country also.

2) Corn grain ethanol and the word "plow" do not necessarily have to go together. The energy balance for corn grain based ethanol can vary to produce whatever result the calculator wants to come up with. With newer corn raising methods corn grain ethanol can have a very favorable energy balance. Cellulosic just removes too much organic matter. The burning of the prairies doesn't change that. Burning prairies releases/loses energy but it does leave the "ash" there...I doubt we will go out and respread the ash from cellulosic power plants back where it came from.

3) Yesterday I went to buy a new pair of cowhide work gloves of a brand I really like. These are somewhat expensive but last and are comfortable and really protect your hands, even with barb wire.  The local hardware store where I have always purchased these good ones that in fact have a label that promotes the fact they are "made in the USA" has redone their store and replaced these gloves, which cost about $20, with a different line of gloves. The new line has a similar LOOKING glove for about $10. They are not the same. They don't fit as well, the leather will not protect as well or last as long but they are about half the price of the ones I have bought for years. It will probably only last 1/2 as long. But they are "cheaper". Looking at them there was no obvious indication of where they were made but I'll bet it isn't "made in the USA".

As a person with an interest in cattle, how can we look to buy cheap imported leather products (or $1 hamburgers)  and complain about the prices we are receiving for our cattle?  We all want to make US wages but pay 3rd world prices for what we buy. It's not a whole lot different than wanting to start wars around the world and cut taxes at the same time. None of this discussion will likely change much of that human tendency to want to have your cake and eat it too but it does help to understand what's going on. 

Recently we are like someone that likes to go out to eat but seems never to have his wallet when the bill comes around.... jmho.

Jim at Dawn

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