Actually you are part of the solution if you can do what the "theory"
says. Take all that extra profit and start an R&D project. Use the
excess labor to push the paper and get ISO9001 certified. Invest
another couple hundred $K setting up international marketing chanels and
start exporting. The theory says that is how we balance the trade
situation.

Oddly, we have such a situation here in Macon. Small job shop serving
the kaolin industry here developed a special ball mill for processing
chalk. The owner did an industry and trade junket to some place in
Africa and found a market for the mill. Now he is sending beer drinkin'
South Georgia good ol' boys to places like Celon, Indonesia and China to
install his mills. Just added 40,000 more feet to the shop, a couple
million in machines and hired 8 more machinist.

That is how it is supposed to work but it is the exception rather than
the rule.

Tom Gardner wrote:

After following some of the links showing job loss and productivity gains,
it's quite depressing, I've come to the conclusion that one of my main goals
has been to eliminate employees' jobs. In the past year I have eliminated 3
people and outsourced semi-finished goods from other American companies at
least. But guess what? Boxes of parts don't have mood swings, PMS,
holidays, don't have to be heated or cooled, and NO SCRAP! They come in at
a set cost with out the variables. Kind of sad that I can no longer devote
the HR to barely breaking even ...on good days. But, specialized suppliers
can do so much better due to their economy of scale than I can.

My newest built machine will eliminate 2 more jobs and a hefty bonus
structure. I just came to realize that the next 3 projects will be such a
boost in productivity that 4 or 5 more jobs are in jeopardy. So does this
make me a bad guy? I don't really think so, but multiply this around the
country and that's a LOT of jobs lost with a net gain in products produced.
So, who's going to have money to BUY products in the future?



--
Glenn Ashmore

I'm building a 45' cutter in strip/composite. Watch my progress (or lack
there of) at: http://www.rutuonline.com
Shameless Commercial Division: http://www.spade-anchor-us.com