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It's Over

Freaking Heck's picture




 

By: Chris Tell at: http://capitalistexploits.at/

 

At a "pitch fest" a few nights ago, while sitting listening to the companies present their stories, and questioning the founders, one particular company struck me as a glaring outcast.

I'll tell you why they were an outcast, but first...

After just a few pointed questions I discovered that this company was struggling to achieve revenue growth, and they were a long ways off from profitability. Here are a couple of reasons why:

  1. High staff count all located in the developed world.
  2. Huge OPEX relative to many of the companies which operate in their space, which was almost entirely driven by point 1 above.

Later the same day I called my insurance company and got through to a call desk. I spoke with "Jacindra". After prying a bit I find she's in Manila. The reason the company I mentioned above is struggling to compete and become profitable is because they are providing a service not distinctly different than their competitors, yet they are paying multiples for things like labor. They are shouting from the rooftops that they're "local", but you know what, that's not scalable, and further more I don't care.

Do I care if Joey, a "local" in some developed world country loses his job to Jacindra in Manila? No. I congratulate Jacindra on dragging herself out of poverty with the aid of technology, and I thank her for the fact that the product I'm receiving is likely cheaper than it would otherwise be.

I hope "Joey" adapts to this change and finds a way to produce more value than he's currently worth, possibly in a completely different field. Change, especially if you're on the rough end of it is tough, but remember we'd all be still sitting in caves if it weren't for innovation and technological change.

General Electric, Caterpillar, Microsoft, Wal-Mart, Chevron, Cisco, Intel, Stanley Works, Merck, United Technologies, and Oracle cut their workforces by 2.9 million people over the last decade while hiring 2.4 million people overseas.

I see it every day... people losing jobs, having to retrain, change strategies and find ways to create value. "Cubicle jobs" are over. Sure there are still large swathes of "cubicle dwellers", but it's over, done, finished... I'm telling you.

Every day more and more people realise it. It's unfortunate for those who refuse to acknowledge it, even though its been staring them in the face for over a decade they've somehow managed to remain blind to it.

Manufacturing Payrolls

I've had angry people pop out of the woodwork when I've written about why education is broken. I suggested that the large educational institutions revenue models are fatally flawed and will see a sea change in the coming years, causing many in the industry to be forced to adjust.

I can understand the anger. Nasty surprises threatening the status-quo always get people angry when they're benefiting from the setup.

If you're sitting in a job which can be outsourced your clock is ticking. First cheaper labour, then better technology together with cheap labour, and shortly robots. You will be replaced, it's just a matter of time. This is a good thing.

Don't cling to the past, or the present too hard. Things you cling to tend to disappoint. The world is dynamic not linear, yet humans love to think in a linear fashion. This is how bubbles are created. This is how WhatsApp sells for more than the entire market cap of one of the world's fastest growing economies. Humans love certainty and certainty only exists in a linear framework in textbooks, it never exists in nature and it never exists in economics for long.

You've probably read about the massive protests across major EU cities by local taxi drivers. Why are they so angry? Because their ability to charge hapless pedestrians 2 blocks for $10 is coming to an end. GOOD! Once again an inferior product or service is being eroded by technology. Uber is single-handedly destroying them by providing greater efficiency and productivity at a lower cost.

Regulating and legislating who can give me a ride and act as a taxi impresses me as ludicrous, but that's the way much of the world operates when Government gets involved. It destroys entrepreneurship, it destroys productivity and as a result it does the very opposite of its stated purpose. Ultimately it causes a build up of waste and excess which would not exist without it.

When Mark and I were in Mongolia a couple of years ago we noticed quickly that every vehicle was a taxi. If you stood on the road and held out your hand someone would stop. Why? Because they can make a few bucks by picking up a "fare". Regular folks, on their way wherever. Why not? All Uber has done is to make that exact premise more efficient and add a little "flare" to it.

Luddits

This is an illustration from an old newspaper. Those are British weavers destroying textile machines in the early nineteenth century. Like the taxi drivers of today, and the cubicle workers, they were angry at technology. Should government have legislated against textile machines so that today we would still be struggling to find decent clothing? Think of the colossal waste of resources, of all the men and women who would be weaving clothing for the world's population, of the poor quality fabrics and massive losses in efficiency.

I humbly suggest their time would have been better spent figuring out how to leverage the technology to provide a better service or product. The same people exist today. Humans don't change. Circumstances change, technology changes but human nature never changes.

 

Socialists vs Capitalists

I previously wrote an article about these two distinctly different mindsets, in which I said:

The first is a group who believe that the world, its peoples, resources, skills and wealth are one giant pie. They essentially believe that individuals don’t have a right to their own bodies, efforts and thoughts. In their vision the pie does NOT increase or decrease in size, but what happens to the pie is that the slices get shifted around between various groups of people within the world. Their major concern is with how much of the pie they personally get relative to others. The aggregate amount is not as important as the relative amount.

 

What is preferable for them is getting less pie, provided others are getting twice as little. They will opt for this rather than receiving twice as much, where others are receiving four times as much. They couch this view of the world, and distribution of aforementioned skills, wealth and resources etcetera in platitudes such as “equality”, “fairness” and “justice”.

 

This group of people will typically support “free healthcare”, “free education” and any other “freebies” that they will not directly have to pay for. They will be ardent supporters of bigger, more intrusive government, as this is the only avenue they see available for the execution of their perfect world. Articulating it as such would be difficult for many of them, as it exposes their view of the world as one completely lacking in freedom of the individual.


The second group of people realizes that there is an existing pie, but are not overly concerned with its size or distribution, since their thoughts typically revolve around building their own pie and adding to the size of the existing pie. They don’t see the pie as a stagnant concept, but rather something that they themselves can participate in forming and shaping.


This second group believes they have the right to their own bodies, efforts and thoughts. They accept that there are others in the world that will have a greater slice of pie than they do, but since they obtain their value and self-worth from building the pie, this concerns them little. They understand that the journey and not the destination are what matters.


Since they have courage and a belief in their own abilities they find the idea of relying on others to support them through “free” anything to be immoral, and although not all will articulate it, they are distrustful of anyone purporting to “help” them, especially when it comes at no cost.  They choose to slog their way through the world on their own merits, and give back by creating wealth and opportunity for themselves and others.

The robots are coming... invest in what's coming tomorrow, because it's likely better than any of us can imagine.

- Chris

 

"Do what you can do best and outsource the rest." - Tom Peters

 

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Wed, 06/18/2014 - 13:48 | 4870179 mcgoverntm
mcgoverntm's picture

The FRED chart shown in the article, MANEMP, shows data from 1980 forward.  To see the drop in manufacturing jobs even more dramatically, look at the full chart with data from 1939 forward.  It's at https://research.stlouisfed.org/fred2/series/MANEMP.

Wed, 06/18/2014 - 13:34 | 4870121 SMC
SMC's picture

Perhaps the proletariat will adjust to the "new normal" when prices for essentials deflate to a level compatible with their incomes.

Wed, 06/18/2014 - 13:47 | 4870148 Frilton Miedman
Frilton Miedman's picture

 

 

In theory, that was the premise of cheaper labor abroad and the corporate tax schemes that encouraged it.

In reality, the cost savings is thrown to C-suite bonus packages and boosts bank earnings off increasing consumer debt to offset the difference in lost wages vs higher prices.

You can call consumer debt irresponsible, and much of it is, but are you willing to let your wife or kids go hungry if you can charge a week's groceries during a recession?

 

 

Wed, 06/18/2014 - 20:07 | 4871699 TeethVillage88s
TeethVillage88s's picture

Yes, Moral Issues abound.

Cost savings goes to the Executives.

We throw all kinds of money around and then people stand in front of a camera and complain about the little spent on social programs or job training(It is very Little).

2013 federal Outlays Training & Employment Services = $3.48 Billion (Decreased)

True we spend a lot in Social Programs, but US People are very productive. Incentives, tax strategies, insourcing to build tech jobs within government, labor teams to work on infrastructure can be done. But Capitalists in Congress and business lose all creativity on this issue.

2013 Federal Outlays for SNAP, Child Nutrition, & WIC = $108.84 Billion

And if our Capitalist are so smart why don't they control the prices in Health Care to manage our federal budget and to aid Americans that go bankrupt from the costs.

2013 Total Medicare/Medicaid = $1.1 Trillion

The Answer:

We go Blind. We blind ourselves. We have some cognitive distortion that is being leveraged by the "Spin" from DC & the "Media".

And Logically:

The Blindness is so acute, the voices for reform so faint: You start to wonder if the want to turn the USA into the Middle East after all they never apologized for all these wars that prove the opposite of "American Values".

- 20,000 SAM Missiles provided to Syrian Rebels
- Mercenaries are Capitalist
- Capitalist Love Mercenaries
- US Constitution is our Principal Document
- Capitalist seem content to trash the Constitution
- Capitalist Control the Whitehouse & Congress
- We are now a Nation of Secrets anathema to the Constitution

Did you see Charles Hugh Smith's article?

http://charleshughsmith.blogspot.com/2014/06/the-most-destructive-presid...

Thu, 06/19/2014 - 13:15 | 4874326 Seer
Seer's picture

And we're really whining here.  MOST of the humans on this planet live off of very little; 750 million people in India living on $0.50/day.  My wife is from the Philippines, in which case I've got an up-close and personal understanding of what most of humanity actually lives like.

There's still a LONG way to fall for us.  Brace yourselves!

Thu, 06/19/2014 - 18:31 | 4875170 TeethVillage88s
TeethVillage88s's picture

Hacienado System in the USA?

Probably that is offensive to people that had haciendas.

But rich & powerful start wars, control economies, corrupt the government, and we sort of lose our humanity. Even in the USA where we don't talk about how bad war is and even how much it is costing our treasury or Fiat or Taxes.

How can we be a country that doesn't speak out against war.

I guess someone from the CFR is giving interviews saying we have to return to war in Iraq & the Middle East. And getting loud about it saying it isn't even a question.

Premiums to go up:

http://finance.yahoo.com/news/premiums-rise-big-insurers-fall-005000846....

the largest health insurer in the state is proposing to increase premiums between 8.5% and 22.8% for next year,

Wed, 06/18/2014 - 13:27 | 4870083 kurt
kurt's picture

Make outsourcing illegal

Cut off those who have and tax the hell out of them.

reverse Citizens United

Wed, 06/18/2014 - 15:32 | 4870714 thedrickster
thedrickster's picture

Don't see how you could possibly make outsourcing itself illegal....

That said, I am starting to question neo-liberal foundations. Is Smoot–Hawley still relevant? What would be the real cost of making capital more sticky?

Clearly MNC profts have very little to do with domestic economic activity in an age of strip mining in lieu of capital expenditures.

The higher order benefits of "free trade" simply aren't materializing. Consuming cheap shit to prop up standards of living is unsustainable. Time to think big.

Thu, 06/19/2014 - 13:12 | 4874313 Seer
Seer's picture

"Consuming cheap shit to prop up standards of living is unsustainable. Time to think big."

And if you peel the onion a little bit more you'll find that it's the notion of requiring perpetual growth that's the problematic part, the part that no one wants to talk about (instead it's the "the 'efficient markets' will take care of it, though those markets require growth).

Our values are in for a BIG change.  Most of us here will discover how most of humanity lives and has lived... (note that there's like 750 million people in India living on $0.50/day)

Wed, 06/18/2014 - 13:12 | 4870004 master bait
master bait's picture

Few years back I worked at GM just as the jobs really started to go out of the country, We had enginering types in the plant every day from Asia and Mexico looking at the production operations before the lines were dismantled and shipped out with the jobs.

In return to keep calm of emplyees who had to train the foreign employees how to do the jobs that were being sent out, the company gave free job training school enrolments to any employee that wanted it.. The cost was a write off for the company but I thought to my self why bother the jobs aren't there and sure as shet now what good was it you can't find a job in this depresion anway.

Wed, 06/18/2014 - 13:28 | 4870089 JRobby
JRobby's picture

My ignition switch caught fire. Who should I call?

Wed, 06/18/2014 - 23:54 | 4872382 Zeta Reticuli
Zeta Reticuli's picture

If you like your ignition switch, you can keep your ignition switch. If you want to get a new one, I'll connect you to "Sam" in Bangalore, and he will sell you a Slurpee.

Wed, 06/18/2014 - 13:25 | 4870066 Frilton Miedman
Frilton Miedman's picture

 

 

 

A friend of mine has a similar story, except that he's a college educated software engineer.

He was allowed to stay on for an extra year to train his foreign replacements, after his department was laid off.

The effects of Globalization aren't just refined to menial jobs as originally promised.

For example, a college educated Chinese engineer makes $300 a month, the American makes $4500 a month, the Chinese engineer has no healthcare to pay for, no tuition either.

 

Wed, 06/18/2014 - 23:55 | 4872390 Zeta Reticuli
Zeta Reticuli's picture

Why would the Chinese engineer have no healthcare to pay for?

Wed, 06/18/2014 - 12:10 | 4869642 Frilton Miedman
Frilton Miedman's picture

This article is a much needed reality slap.

A Foxcon worker makes $0.49/hr and that's including a recent pay hike of 58% from $0.31 after the suicides brought attention to their wages.

The same worker in America could barely survive making 20X that amount.

Meanwhile, we tax Chinese imports @ 2.5%, while they tax our exports @ 25%.

The reason, 60% of those Chinese imports are American companies taking advantage of cheap Chinese labor, and, the bulk of money saved is transferred to C-suite bonuses rather than end prices.

We may not be able to reduce wages to $0.50/hr, but the least we can do is tax them the way they tax us.

Atop that, "job creating" tax schemes should be rewarding jobs that are created here, not for jobs in emerging markets.

I'm happy to help third world families arise from grass huts, but not when it means I might have to move into a grass hut myself.

I'm also happy to see the C-suite doing so well as to buy small islands, private jets and gorgeous yachts, but again, not when it means grass huts for the rest of us.

 

 

Thu, 06/19/2014 - 06:35 | 4872419 Zeta Reticuli
Zeta Reticuli's picture

Using FoxConn is not a good example. It is a Taiwanese company that is part of a private hell created by Apple and its fanboys. It is certainly not typical of Chinese jobs, but it is often used by China haters to paint a dismal picture. It will probably soon be moved to Bangaladesh or Vietnam or Cambodia. Try using GM Shanghai, or Honda, or Toyota, or any of 3 dozen Chinese car manufacturers. China has the worlds largest automotive market, for both sales and manufacture. They make about $4 an hour US. These are good jobs with health insurance, pensions, decent working conditions, etc. Middle class, measured by American standards, starts at $9000/year USD HOUSEHOLD income in China. Upper middle class starts at $16,000 USD a year household income. I retired in China and My wife and I live a very nice upper middle class life on about $500 US a month. We own a very nice home in a high-rise in a gated community that cost us about $120,000 US.

America is just too expensive now to compete in the world market. And don't think that Americans are going to pay $5000 for a TV that now cost $600 just to protect American jobs. The game is over.

 

Thu, 06/19/2014 - 13:08 | 4874292 Seer
Seer's picture

"We own a very nice home in a high-rise in a gated community"

Don't look outside those gates!

When things collapse, which they will, I'd think that being locked into a "gated community" that's entirely dependent upon resources from outside of it is NOT the greatest survival strategy.  Ah, but to each his/her own "solution"...

Thu, 06/19/2014 - 22:51 | 4876625 Zeta Reticuli
Zeta Reticuli's picture

All these "preppers" will find a bunch of armed, uniformed men at their door in the event of a social meltdown. They will be collecting all the food and supplies to redistribute it.

Wed, 06/18/2014 - 12:42 | 4869816 Seer
Seer's picture

Nothing wrong with grass huts!  That is, in certain places.  Heck, I was going to build one- it's called "straw bale."  Anyway...

Folks will find that the more infrastruture there is the higher the cost of living.  And as energy costs go up (that is, affordability goes down) those infrastrutural costs will climb.

"Atop that, "job creating" tax schemes should be rewarding jobs that are created here, not for jobs in emerging markets."

It'll be a big campaign of "bring back the jobs."  Those same folks who made a killing with all those companies will now be subsidized to bring the automation back to the US, and with it a handful of jobs.  Funny thing is is that with the global melt-up happening those companies would be turning tail and coming back on their own.  The "bring the jobs home" propaganda campaign will ensure that we all feel good about rewarding the same bastards who offshored the jobs in the first place for hauling their asses back to the US.

I could write this movie...

Wed, 06/18/2014 - 13:30 | 4870010 Frilton Miedman
Frilton Miedman's picture

 

 

The one premise of the article I completely agree with, we need to accept those jobs are gone, forever. (Can't remember the last time I drove past a travel agency, or a textile plant - you?)

From there, we need to do empirical research on the effectiveness of "supply-side", whether the tax advantages we give corporations and the wealthy is returing to the consumer in reduced costs.

(This occured to me as I purchased printer ink at ridiculously high prices, thinking Romney paid 13% in taxes off downsizing staples, certainly not beneficial to me or other small businesses ) 

e.i. - In theory, 10,000 jobs lost @ $40K apiece, should amount to the same amount of cost savings for the end consumer in order to justify reduced corporate taxes, specifically the above-mention U.S./China tariff differential.

Are the lost wages from those lost jobs made up in lowered comnsumer costs?....Or, is that one of the contributors to our current diparity crisis?

 

 

Thu, 06/19/2014 - 13:05 | 4874276 Seer
Seer's picture

"The one premise of the article I completely agree with, we need to accept those jobs are gone, forever."

And consider that MANY were automated.  I worked for an international company who did manufacturing and I KNOW that when you go to make any signficant move you take advantage of the disruption to inject changes to production, such as automation.

I am not blasting "automation" per se, as I highly doubt (I'm being kind here) that a set of humans hands alone would be making iStuff.

"Are the lost wages from those lost jobs made up in lowered comnsumer costs?....Or, is that one of the contributors to our current diparity crisis?"

I don't think that there's ever a total rebalance.  I think that this has all been an issue of a downward slope.  The upward slope enabled the growth which allowed for the actual dumping of products.  Here it's a race to hold on to market share as volume declines in the face of increasing raw materials (actual numerical valuation may appear lower but I'm talking about proprtionalities)- we're pretty much out of "new markets."  Economies of scale in reverse, it's invasive and unrelenting...

Wed, 06/18/2014 - 15:41 | 4870763 thedrickster
thedrickster's picture

"From there, we need to do empirical research on the effectiveness of "supply-side", whether the tax advantages we give corporations and the wealthy is returing to the consumer in reduced costs."

Agreed. The corporate tax code is a very real/available tool.

Instead of squabbiling for scraps (minimum wage hike), should be re-writing the tax code to incentivize domestic operations/production and disincentivize overseas CapEx. The incentives currently in place are working exactly as one would expect, the result disasterous for labor v capital.

 

Wed, 06/18/2014 - 17:00 | 4871090 Andre
Andre's picture

Start by getting rid of NAFTA/CAFTA, stop the TPP negotiations, and impose reasonable tariffs on imports - even if they come from a foreign subsidiary of a US corp.

The issue at this point is, so many workers have been fired it doesn't matter what you make, with or without robots. The tax base is gone, the infrastructure is crumbling, education is more ideological indoctrination, and so on. With the oil price hikes the market is imploding.

This will be a hard reset.

Wed, 06/18/2014 - 19:01 | 4871027 Frilton Miedman
Frilton Miedman's picture

 

 

 

Then, I guarantee, as soon as this discussion hits DC, we're right back to listening to screaming & incendiary accusations about the "free market" from the usual MSM sources, as we did with healthcare reform, which ended in redistribution of costs rather than reduction of costs.

The only way we'll ever see that type of legislation is to get money out of D.C., no politician is going to endorse policies that guarantee corporate campaign money for an opponent in their next election. - 95% of elections are won by the candidate with the most money.

Full circle to Antonin Scalia's "bribery is free speech".

 

 

Wed, 06/18/2014 - 10:28 | 4869024 grunk
grunk's picture

Learn to weld.

Wed, 06/18/2014 - 13:30 | 4870097 JRobby
JRobby's picture

And move to North Dakota

Wed, 06/18/2014 - 14:51 | 4870531 TVP
TVP's picture

Who in their right mind would move to North Dakota?

Do you have any idea how much rent and real estate cost?

 

When there's only one place in the entire country that has jobs, THE ENTIRE COUNTRY FLOCKS THERE, driving rent to the MOON.  

Thu, 06/19/2014 - 12:58 | 4874243 Seer
Seer's picture

And when the jobs are gone and you're stuck with some expensive place (think about energy costs down the road)...  Ah, the Great Con Game.

Wed, 06/18/2014 - 12:35 | 4869779 Seer
Seer's picture

You should get more up-votes!  I was going to do that, but instead opted farming.

Remember to Farm Yourselves!

Wed, 06/18/2014 - 09:58 | 4868907 Duc888
Duc888's picture

 

 

merchantraterview: "Someone in US would do it for $10 to $15 an hour. She and you helped make that impossible."

 

Completely ridiculous.    Comcast offshored the job.  The position is over there.  Comprende'?  You're such a hero why don't you go take the job for $2.60 a day

 

That position is not worth $10 an hour over here.  Would YOU work for 10 an hour doing that?  What emplyer over here would pay $10 for that position plus unemployment ins. with a high turn over rate....oh yea, and Obama care....even if some clown was foolish enough to offer that job over here because of Obama care it would be less than 30 hours a week.  You gonna run out and get 3 jobs like that and work 90 hours a week for money that you can't even live on?

 

My brother owns a cab company.  He's pulling cars off the road because he can not find anyone that can pass a piss test, get a PS license and actually make it to work to do 12 hour shifts and TAKE HOME $600 a week.  Everyone is on Unemployment comp or SS disability.

 

So again, the job is over there, go after it tiger.

 


Wed, 06/18/2014 - 13:30 | 4870101 JRobby
JRobby's picture

Boycott Comcast. They blow.

Wed, 06/18/2014 - 12:35 | 4869774 Seer
Seer's picture

And could you possibly see that more and more of what we "do" is becoming less and less worth it?  Perhaps the ROI, or in the case of the larger picture -EROEI- is catching up with us: we can no longer hide the externalized costs.

Bottom line: it's been about unloading over-production for a LONG time; that's what a lot of the early 1900 dirty wars were about for the West/US.  This model is in decline because natural physical resources are in decline: add in increased competition from the likes of China and pretty soon the cost for exploitation starts to weigh a lot heavier than in previous times.

"My brother owns a cab company.  He's pulling cars off the road because he can not find anyone that can pass a piss test, get a PS license and actually make it to work to do 12 hour shifts and TAKE HOME $600 a week.  Everyone is on Unemployment comp or SS disability."

So, a piss poor cab company? <ha ha>

And when there are less and less people able to afford paying cab fare?  And fuel prices, road taxes and repair costs are increasing?  You see, you're missing the other side of the "wage" equation, and it's this/that side that shows the trajectory, shows that the trajectory is basically downward.  Perhaps, then, people realize that "establishing" themselves with something that is in decline is NOT a good idea.

Wed, 06/18/2014 - 09:33 | 4868795 More_sellers_th...
More_sellers_than_buyers's picture

Things started to go jabberwocky in the 80's.  There was always really really rich guys, that started companies and rode them to the top and were rewarded handsomely.  Nobody begrudged them because they were smart and everyone had the feeling if they had just applied themselves to something or were lucky enough to be at the right place it could happen to them.  Then the chairman of ITT took a golden parachute of som 80 million bucks. An unheard of sum at the time for something he didnt create.  Then it became a free for all at the top level.  Eisner at Disney etc.  I remember thinking at the time, What gives Esiner the right to take a billion bucks from Disney.  Any semi smart fuck could do that job.  Well... here we are ...legalized theft in the form of stock grants to an elite class

Wed, 06/18/2014 - 09:33 | 4868794 More_sellers_th...
More_sellers_than_buyers's picture

Things started to go jabberwocky in the 80's.  There was always really really rich guys, that started companies and rode them to the top and were rewarded handsomely.  Nobody begrudged them because they were smart and everyone had the feeling if they had just applied themselves to something or were lucky enough to be at the right place it could happen to them.  Then the chairman of ITT took a golden parachute of som 80 million bucks. An unheard of sum at the time for something he didnt create.  Then it became a free for all at the top level.  Eisner at Disney etc.  I remember thinking at the time, What gives Esiner the right to take a billion bucks from Disney.  Any semi smart fuck could do that job.  Well... here we are ...legalized theft in the form of stock grants to an elite class

Thu, 06/19/2014 - 12:57 | 4874234 Seer
Seer's picture

The start was in 1913.  Pretty much came to a head in 1971 when the US essentially defaulted, but has managed to pretend that it didn't happen.  When you're bankrupt and counterfeiting currencies then that's a signal to all the unsavory types that they are free to do just about anything.  Ww have all aided and abetted this (by continuing to allow the game to go on).  Paper for paper for stupid goods and services...  When at the circus it's not proper to complain about the clowns...

Wed, 06/18/2014 - 09:12 | 4868690 insect0man
insect0man's picture

How long before "Chris" gets outsourced to an AI in Cyberia?

I'll invest in that.

Until then, FU "Chris", and the globalist jackwagon you rode in on.

Wed, 06/18/2014 - 09:09 | 4868682 taketheredpill
taketheredpill's picture

 

 

So...thanks to Uber the UK Taxi drivers won't have to dream of travelling to exotic developing countries.  The exotic developing countries will come to them.

 

Not saying it isn't going to happen, as long as people realize that exporting jobs = importing poverty.

 

Not saying whether it's right or wrong, just saying that Jacinda and others didn't drag themselves out of poverty, they were targetted by companies looking for sweatshop-friendly locations.

 

Also saying that as all of these changes are happening, one small group is realizing disproportionally larger benefits.

 

Also, how does the author compare technoloigal advances / inventions with outsourcing jobs?  Technology allowed companies to "discover" people in low-wage countries?

 

 

 

Thu, 06/19/2014 - 19:04 | 4875678 sgt_doom
sgt_doom's picture

Also, how does the author compare technoloigal advances / inventions with outsourcing jobs? Technology allowed companies to "discover" people in low-wage countries?

Well, the author isn't mentally capable of such heavy thinking by the attitude and brevity of his piss-poor article and assertions.

Obviously, the author doesn't understand arithmetic, finance and economic systems, either partially or in their entirety.

Sure, they've offshored the jobs, technology and investment, but what happens when corporations refuse to amortize?  And countries refuse to amortize?  And societies refuse to amortize?

Obviously what we've been observing the US of Assholes!

 

Wed, 06/18/2014 - 12:26 | 4869726 Seer
Seer's picture

Yes, it's ALL about exploitation of resources, natural and or human (or both).  And as the key ones exhaust it's then time to move on.  Shit, people, this is how humans have operated since forever: trash and move on; only, today there's little place to "move on" to; so, we slowly decay in place...

Thu, 06/19/2014 - 01:58 | 4871171 Radical Marijuana
Radical Marijuana's picture

Yeah, Seer, in theory, industrial revolutions require developing industrial ecologies. However, that is practically impossible inside of entrenched systems where the human ecology operates its death controls through the maximum possible deceits, and financial accounting gets done through the maximum possible frauds.

The central problem is how to develop better death controls to back up better debt controls. I imagine that we will do so in the worst possible ways, by the debt insanities driving death insanities. However, through that process, it might be possible to select for a more scientific society, that understood evolutionary ecology energy systems, in order to manage their own better. However, the essence of that problem is the same now as always: how to ACTUALLY operate the combined money/murder systems in any ways other than on the basis of frauds/deceits?

The paradoxes are that natural selection worked to favour the systems of successful warfare based on deceits, and successful finance based on frauds. However, after progress in science and technology provided tools which became trillions of time more powerful, continuing to survive by doing that has become extremely problematic: apes with atomic bombs, on exponential growth curves!

We are indeed getting nearer to the point where "It's Over," in ways which go far beyond the frame of reference presented in this article above! However, since everyone was personally successful in the past to the degree that they participated inside of the established money/murder systems, it is practically impossible to imagine how any of them are going to willing go through the kinds of revolutions necessary. Therefore, one expects we will be forced to change, eventually, and MAYBE, then catalyze those transformations ???

Thu, 06/19/2014 - 12:46 | 4874155 Seer
Seer's picture

"apes with atomic bombs, on exponential growth curves!"

And that is going to turn out well, yes? </sarc>

When it all fails, which it will, folks like you and I will be blamed for the failure, blamed for getting in the way...

Wed, 06/18/2014 - 09:16 | 4868675 crazytechnician
crazytechnician's picture

Our core business is robotics , automation and maintenance of such. It is a growing area and as well as destroying 'dumb employment' it is also creating 'smart employment'.

We are looking into the future and can see clearly that cryptographic currencies ie bitcoin have the potential to massively disrupt and completely automate and transform finance. Just think , no more accountants (somebody who simply counts your money then takes a cut), lawyers (a large criminal element who simply use their knowledge of the law to fuck people out of their money), banks (have now become simply zombie parasites extracting value from the global economy and sending it into a vacuum) , just like those poor unrequired weavers of the 18th century they will all be replaced by software applications. They will need to smarten up. It will be possible to replace entire government departments with automated software , plus voting systems and things we have not yet even thought of. The entire parasitic and inefficient banking system will become a thing of the past.

Wed, 06/18/2014 - 12:23 | 4869710 Seer
Seer's picture

You're NOT addressing the core issue.  What you're claiming/pushing only accellerates the problem.

All the robotics/automation and crypto currency stuff is going to be ripe for asymetrical attacks, with each day there being more on the attacking side (because they are not of the "priviledged" side).

"just like those poor unrequired weavers of the 18th century they will all be replaced by software applications"

Those folks were replaced by CHEAP ENERGY.  That cheap energy allowed the creation of the machines and software, and, most importantly, the transport of thoe goods over long distances of travel.

"The entire parasitic and inefficient banking system will become a thing of the past."

That's a given as techo-de-evolution sets in.  It's not a matter of IF but of WHEN: I'll assure you that if humans don't do it by their own hands that nature will (think that much is going to survive the next glacial period?).

Wed, 06/18/2014 - 19:46 | 4871563 crazytechnician
crazytechnician's picture

Seer , in fact what enabled that transformation was technology not cheap energy. In fact true industrialisation is the realsation of efficient technological systems and improving them to be more efficient and use less energy , systems which could manufacture at high volume at high speed , thus requiring less energy per unit to produce. One cheap robot arm can replace 24 people - 8 people per shift w/ 3 shifts per day , these people not only work but consume food , water , they all have to travel to work , get sick ,  can only work 8 hours per day , make mistakes and can go on strike. The robot arm simply requires electricity and if properly maintained can operate continuosly for years without taking a lunch break or going for a shit. Overall energy consumption is less , not more. What needs to happen is the people this technology has displaced will need to expand their skill set so they can be part of the new automated economy. An example of this is training as engineers , technicians , designers , they end up being more productive and on higher salaries and see an increased standard of living. Ultimatly all of the energy we use on this planet was provided by either our sun or another star , and as we deplete our fossil and nuclear fuel supplies a smooth-ish transition over to solar and other forms of renewable energy is now taking place. The same thing will happen to our un-sustainable currency systems as well. As well as destroying old , inefficient and arcane systems , all of these transformations will carry brand new wealth creating oportunities.

Thu, 06/19/2014 - 19:06 | 4875685 sgt_doom
sgt_doom's picture

Sucker, you have to read more and often!

Thu, 06/19/2014 - 12:42 | 4874130 Seer
Seer's picture

Technology is a PROCESS.  It does NOT create anything as far as matter is concerned.

"In fact true industrialisation is the realsation of efficient technological systems and improving them to be more efficient and use less energy , systems which could manufacture at high volume at high speed , thus requiring less energy per unit to produce."

Jevons Paradox, look it up... NOTE: if you're still increasing the rate of consumption then you WILL more rapidly consume that which you are being more efficient with.  The "efficiencies" also apply to the extraction end.

Here's an example (for the more visually inclined [oil well depletions don't provide us with such visual imagery]:

http://en.wikipedia.org/wiki/Open-pit_mining

"Ultimatly all of the energy we use on this planet was provided by either our sun or another star , and as we deplete our fossil and nuclear fuel supplies a smooth-ish transition over to solar and other forms of renewable energy is now taking place."

Who is the "we" here?  Do you really believe that all humans are going to be living in mega homes, driving POVs, and travelling all around the globe on vacations with RENEWABLE energy?  Even blasting through the massive bank account that is fossil fuels has us with the majority of humans on the planet living in extreme poverty.

"The robot arm simply requires electricity and if properly maintained can operate continuosly for years without taking a lunch break or going for a shit."

And it's purpose is?  To make stuff that people cannot afford?  And, when that "arm" breaks? (who is there to "fix" it, and how [materials, energy etc.]?)

Again, Jevons Paradox.  And, would be a good idea to understand the exponential function: try looking up Dr Albert Bartlett and his Arithmetic, Population and Energy (Chris Martenson[sp?] also has some really good stuff]).

Wed, 06/18/2014 - 16:17 | 4870920 thedrickster
thedrickster's picture

Lucky for me, algore has called off the next ice age.

Know of any good alternatives to The Oil Drum?

Thu, 06/19/2014 - 12:28 | 4874074 Seer
Seer's picture

Next glacial period is a certainty.  (you can take the Party Pussy part and rub you dick with it)

"Know of any good alternatives to The Oil Drum?"

And you would have an interest why? (I don't really care, and, frankly, I'm too busy to read about stuff I already am familiar with)

Wed, 06/18/2014 - 11:21 | 4869355 Wild tree
Wild tree's picture

Ehh, cryptographic currencies and automated software have no morals and will be outsourced to the highest bidder. I envision the "Boot in the Face" through automation worked on the masses.

Wed, 06/18/2014 - 11:40 | 4869487 crazytechnician
crazytechnician's picture

And bankers and politicians do have Morals ?

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