Efficiency Margin Killers

The next few things will shock you. You won’t believe it. It is all true and you may have a feeling in the back of your mind that I’m right. The world we know today can’t end well, and things are changing at a fast rate to end the reality you are comfortable with right now. The following is a short list of the top killers of economic efficiency. They are what I call efficiency margins, things that lower the overall efficiency of the world.

PROFIT

That’s right, profit destroys the bottom line. Every dollar of profit is a sign of poor economic efficiency. This is not to say that the business making a profit is inefficiency, quite the contrary, but the economic environment in which the company does business is hurt. Lets review what profit means for a  bit. Profit means that the product could have been sold for less! Profit means that the workers could have been paid more! Profit means that the raw ingredients are being under-valued! Profit can lead to greater inefficiencies as well. Some people may decide not to reinvest their wealth, and hoard it all, keeping it out of the system! The economy then has to function with less money in the loop, which means slower throughput.

WAGES

That’s right, wages are a sign of poor economic efficiency. The greater the wage, the lower the overall efficiency. The greater the minimum wage, the poorer the quality of living is for every individual who gets the minimum. Because the minimum wage is directly tied to cost of living, the higher it is, the more challenging it is to live in that environment. The more challenging it is to live, the worse off everyone is!

FOOD PRICES

Food prices are another efficiency drain! Food prices are mostly impacted by shipping costs, even though a lot of money goes into equipment prices and chemicals for the task of farming, none of those implements are actually needed. After a little while, equipment gets paid off. Less chemicals means fewer smaller harvests, which means more people can be farmers. A lot of people are actually paid not to work their farmland! The cost of food affects the cost of living, which affects wages, which affects company profits.

SOLUTIONS

There’s a relatively new technology that has actually been around and used for about ten years or more as of 2010. This is virtual reference guided three dimensional pattern scanning. Basically, a camera and lasers scan a piece of machinery from every angle using a 3D model as a reference. If any part looks worn or bent or burned out, it is tagged for human inspection, or it is just replaced by robots. Every machine can be designed to be repaired using this method in concert with functional diagnostics and self-diagnostic hardware. These are all automated processes that require a minimal human workforce for emergencies and second opinions.

We need to put extremely cheap solar films on top and sides of every train car in the world. This would only require maybe one or two battery bank cars, and the entire train system would become completely free. We need to have more proliferation of automated packing and unpacking of shipping cargo around the world, even as far as dropping packages off at your home. We should have a shipping cargo rail lane underground with small above-ground vehicles that unload parcels on your doorstep.

 

OK so I bet you are wondering, with all of this automation and freedom, what will we be doing? You decide.

Economic Balance On Razor’s Edge

It has been documented throughout the ages. Governments rise and fall. Economies crash and people resort to cannibalism to survive. Economies prosper, and people stop working, they make political trouble, and start wars and create new nations. This is the balancing act, on the edge of a razor blade, that governments have to contend with.

New nations with minimal wealth have more power than old nations with great wealth. The poor economic condition allows forced labor to penetrate all of society, limiting human freedom and liberty of the general public. The price of goods and services is extremely low because they are being produced for free.

At some point, a nation reaches the golden age. It is the beginning of the end. People work for a limited amount of time with an acceptable reward. People have a moderate amount of time to be idle and pursue other interests. Most people are given enough work to fulfill their personal desire to be useful, while at the same time they are given enough leisure time to relax and enjoy life.

The end comes when the unthinkable happens. Labor unions force businesses to give employees more money than is sustainable, and companies begin to go out of business. More and more people earn too much money, and decide to retire in their early thirties or forties, removing huge masses of people from the labor market. Small businesses rise and fall, quickly being taken over by large corporations that are too bloated to survive alone.

Chaos ensues, leading to slave labor alongside rags to riches millionaires. Small pockets of enormous wealth reside alongside huge slums. All of the philanthropy in the world won’t help the nation now, the end is visible. The costs of goods and services rise to epic levels due to the unpredictability of the markets.

The people rise up. Many lives are lost. Dictators and regimes are overthrown. Crime skyrockets.