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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: TobagoJack who wrote (37144)8/12/2003 6:26:29 PM
From: Haim R. Branisteanu  Read Replies (2) of 74559
 
The myth of American Productivity is based not in actual productivity but in the growing trade deficit.

To make it simple -

My company manufactures "widgets" for consumer use. I employ a staff of 10,000 all domestic in the US .

My product is patented so no competition.

For consumer service I employ around 160 people for telephone assistance 24 hours a day.

Last month I moved my call center to India and only 2 supervisor remained - BINGO my productivity increased by 1.5%

Further I decided that I import my plastic parts from China and closed down my 30 year old plastic injection department leaving only 2 supervisor 5 QC employees and 2 warehouse people all other 300 people I let go

BINGO my productivity increased by additional 3%

So I am proud to report that with 4.5% less people I produce for the time being the same amount of products ..... until I will increase productivity more by firing my metal stamping people ...... and so on.

So there we have the "jobless" recovery and unusual growth in "productivity" of the US worker

...... Now who can demonstrate that my theory is wrong ? ........
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