[lbo-talk] Jobs

Wojtek S wsoko52 at gmail.com
Fri Oct 7 07:36:19 PDT 2011


It depends on the product or industry, I guess. The yuppie Whole Foods, which generally sells better quality products, have a higher profit margin than other retailers. Iphone has a higher profit margin than competitors http://tech.fortune.cnn.com/2010/03/02/what-doth-it-profit-an-iphone/

And while I am definitely against cheapening of products and wages, I am in favor of reducing if not together eliminating the rent component of product cost (not just high profit margins but overblown executive compensation as well.)

Wojtek

On Fri, Oct 7, 2011 at 10:09 AM, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Oct 7, 2011, at 9:55 AM, Wojtek S wrote:
>
>>  It does not take much
>> more resources to produce beautiful stuff than it takes to produce
>> crap.
>
> Yes and no. It takes a lot of skilled labor to produce a beautiful men's suit, and it shows. It's not just snob appeal.
>
> Not totally unrelated fact: the profit margin in fancy restaurants is considerably lower than that it fast food and casual joints. Good ingredients and skilled labor are expensive. The mass production and cheapening of everything might result in lower prices, but it's also part of the wage suppression mechanism.
>
> Doug
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