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The Forum > General Discussion > Cut out the middle man- but at what cost

Cut out the middle man- but at what cost

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Rehctub, the world does not owe you a living.

Boy, wasn't that predictable. It's not about me, it's about future generations.

I could sell up and retire tomorrow if I chose to. I can assure you nobody owes me a living

Now I will give you an example.

Let's say you spend $300 on food stuffs.

1. You buy from three outlets, meat, fruit, groceries. You have helped create jobs for, wholesale staff, delivery drivers, shelf packers, preparation staff, sales staff, cleaners, trolly collectors, office staff.

2. You buy direct, on-line. Your purchase has helped create jobs for; Office staff, order packers and delivery drivers. Not much else really.

This is my point. The loss of manufacturing staff was only an example of what is happening and has little to do with this topic.

Col
How can you possibly think that automated machinery creates jobs. It costs jobs.

Everything from self serve petrol to computers at the TAB have cost jobs. Who knows, perhaps this will change in 20 years or so. Somethings gotta give.
Posted by rehctub, Wednesday, 25 November 2009 5:56:57 AM
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rehctub:"Everything from self serve petrol to computers at the TAB have cost jobs."

And yet we have lower unemployment rates than 20 years ago, despite the massive entry of women into the workforce and despite the "loss" of jobs due to technology. That is because new types of work have become prominent. The service sector, whether IT professionals as in Col's example, or lawnmowing contractors or housecleaners or even dog-washers has expanded massively.

I often agree with you, but I think you're way off beam this time.
Posted by Antiseptic, Wednesday, 25 November 2009 7:14:34 AM
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Those who hang behind for to long will lose the race.
Give someone a job to monitor an online store and you may just come out on the good side.
Posted by Desmond, Wednesday, 25 November 2009 7:44:06 AM
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I can understand your concerns rehctub, but I think you are a little off track with your examples.

Think for a moment what is involved in setting up an online shop for the three examples you gave:

>>You buy from three outlets, meat, fruit, groceries<<

Now, tell me which of these tasks will not be required:

>>wholesale staff, delivery drivers, shelf packers, preparation staff, sales staff, cleaners, trolly collectors, office staff.<<

About the only position that is redundant in the new set-up will be the trolly collectors.

And since most of them possess at least one arts degree, you can set them to work designing, setting up and maintaining the web site through which you sell your products.

It's not all bad, you know.
Posted by Pericles, Wednesday, 25 November 2009 8:04:01 AM
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Rehctub “Col - How can you possibly think that automated machinery creates jobs. It costs jobs.”

I never suggested it creates jobs (although it does) I merely observed it improves productivity

To the point about creating jobs….

Go back 300 years, pre industrial revolution versus post the industrial revolution….

Few people had table clothes or linen or wedgewood china or sheffield quality cutlery…

The benefits of the industrial revolution were to reduce the production costs of English manufactured linen, china and cutlery etc,

The reduced cost (from improved productivity) made the products supply cheaper, stimulating the demand from people who could previously not afford them.

That increased demand fed back to justify the employment of more people in those industries.

Similarly, GPS systems were available in the 1970s but were so expensive they were only used on super-tankers and very large ships.

By the 2000’s someone had developed a micro chip to harness the same technology and suddenly GSP’s were available for a few hundred dollars for anyone to buy.

Making products cheaper (reducing the cost of supply) changes the supply : demand equilibrium thus stimulating demand, which in turn increases the manufacturing, distribution, sales and retail staffing for people who sell GPS systems.

When I look at a Dick Smith or JB Hifi store, I see people selling 95% products which did not exist 20 years ago and whilst we can also buy stuff off Ebay etc. I for one would not risk aquiring highly technical devices where I had no recourse in the event of failure. Buying a shirt or tie is one thing, buying a computer from a private source without recourse or guarantee is a mugs game.
Posted by Col Rouge, Wednesday, 25 November 2009 12:41:55 PM
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Lets not forget Transport, Couriers and the like. That's the business I should have started as soon as internet shopping started to boom.

I always think of the 'middle' man as the useless scourge on the whole process. They add little value and much cost.

Who really likes used car salesman and real estate agents?
Posted by Houellebecq, Wednesday, 25 November 2009 1:02:42 PM
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