According to your Econ 101 class, the ultimate goal of reducing costs and maximizing shareholder value is to outsource all production to Communist and or Dictatorship countries, since their cost of labor will always provide the lowest costs of production, and let the the US and Europe finish their shift to a 100% service economy.
Like socialism, where everyone works and everyone shares equally in the bounty, you get the maximum equitable distribution of goods and services.
The only small problem with Econ 101 theories comes from Psycology 101. The human vices of greed and envy negatively affect distribution of wealth, and the lack of a reward motivation affects production.
Note: While still affected on the production side, the Communist and Dictatorship models can minimize loss of production through negative reinforcement. While these same forms of government usually have a small group of leaders/decision makers that also control distribution to positively or negatively create motivation.
Bonus questions: When the shift of manufacturing and services is complete, and the service economies no longer produce anything, what mechanism in this system maintains the established balance of value between goods and services? (Hint: Which group can live without the other, the producers or the service providers?)
Footnote: Emerging economies are discussed in Econ 201, but for the purposes of this discussion, the skill set is low and limits what can be produced. And once they emerge, the then join world economy and fold into one of the two camps.
Last edited:
