This has never been more true than in 2022. College "educated" morons who have no clue how anything actually works. These professors have never left the comfy environment of a school campus. K-12, 12 years in college, then they teach in a college. Never once needing to set foot in the real world where their educations prove to be inadequate for regular life.
This is why life long government employees don't understand the 3rd and 4th order effects when they announce some program. Spent 15 years in the private sector before returning to public sector. I was counseled last year for my "i told you so attitude" when a 9-figure program crashed and burned.
incredible how even smart movies like this one is almost nothing nowadays next to children intelligence - now finances are just a video game for them !
For those that aren't aware they dropped the audio on the part where he says "japs", referring to the labor costs the Japanese would kill them on. This is the society we live in now where older movies which used those kinds of slang terms aren't allowed anymore because the snowflakes of the world will get upset. I don't have a prejudice bone in my body but he word he used again was "japs". Get over yourselves.
He is right. Leasing a warehouse is a much better strategy than building a warehouse. The rental cost is an Opex (Operation Expense) which is tax deductible. Also, you are not tied down to the warehouse if your business slows down. You can move out at the end of your lease term or you can negotiate for a better rate.
Professor could have played along and still stuck to the syllabus... basically expanding the heck out of the "labor" section! What Rodney isn't getting is the vast scope of these thought experiments. So many factors come into play so each must be simplified a lot. I remember an assignment we had in engineering class...had to decide whether it would be more profitable to outsource the manufacturer of a certain part or set up a tool and dye to make in house. I'm sure there would be so many factors determining the true cost.. but we just made a quick guesstimate, punched that in and crunched the numbers. Remember what they say about bachelor's degree...you learn just a tiny bit about many things. In actual career practice you learn many things about a tiny bit.
I was the guy in the green shirt in my political science class. When the professor had no response to my questions I walked out and never returned to university, knowing that I already knew more than the professors.
I don't understand the obsession that economists have with factories. There's a lot more to the world than mass production, and the skill of your workforce is never even a consideration in these masturbatory hypotheticals. This movie really shows it's age. The mob and the unions are barely a consideration anymore. Now it's the ESG goon squads that need their cut. Just look at the attacks on Tesla.
