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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: ajtj99 who wrote (109807)	3/22/2010 10:39:59 PM
From: dave9	2 Recommendations Read Replies (1) of 116555

"...80% of the product value stays here regardless of where it is produced..." Don't think so. Not even close. Transport is mostly there. Almost all there when you consider raw materials and sub assemblies. Warehousing is of only the finished product and none of the materials that make it. Who stocks the parts that make up the thing? Who makes the fixtures for the machines? Who tests the product? Who makes the testers? Who calibrates? Maintenance? Distribution, wholesale and retai.... You mean Walmart, right? So, you have a trucker moving the container to Walmart and Walmart. That is your "value" that gives 80% of the good life. Just the final sale and nothing else. No wonder things have gone to hell. Too many have bought into this line? The sheer stupidity in the statement that most of the value is only in the final sale of the finished good is so ludicrous it defines exasperation. Dumb ass economist line of bull. Throw that book away with that quote. If you loose production you have lost at least 80% of the value of the product. More when you consider what it really takes to support production of something.

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