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Higher US Wages Do Not Cause Loss Of Domestic Manufacturing

My comment to Cafe Hayek, "Artificial Scarcities Are Not Wealth" by Don Boudreaux:

Lower wages in a foreign country are not the reason that manufacturing of a product declines in the US and increases in a foreign country and becomes an import.

Labor cost is about only 10-15 percent of manufacturing cost in the US. The US is a capital-intensive country. Each US worker, whether in farming or manufacturing, can produce a lot due to our heavy use of machinery. US worker productivity led to our high standard of living.

Capital and the complementary labor are allocated in the US to their most productive uses. These are the manufacturing and farming goods for which we have the highest international comparative advantages. The US exports these goods. It imports the remaining goods it wants after capital and labor are allocated to their most productive uses in the US.

Labor and capital in the US go to their most productive uses in a hierarchical fashion, until capital and labor are fully allocated. Goods for which it is not economically efficient to allocate capital and labor get imported.

The remaining manufactured goods, even if the US has an international comparative advantage (lower comparative wages, etc.), are not produced in the US, and are imported, because the US can more efficiently produce other goods for the world and domestic markets.

The market, labor and capital reallocations are the negative effects of this process. Government and union intervention can impose barriers to changes in resource use but it cannot stop it.

Certainly, since Ricardo's time, economists understood that a domestic economy benefits if it can allocate its resources to manufacture a good with a higher relative comparative advantage. Even if it is a low cost producer of goods it imports, as long as it has a bigger comparative advantage on the goods it manufactures, the domestic economy benefits from imports. See Wikipedia or any economics site on the web about comparative advantage and trade.

While unions are often blamed for high labor costs, it is their rigidity, their inefficient seniority linked demands, and other union rules, which causes the most problems. These union characteristics make other capital, labor investments more attractive, and impede the reallocation of union members.

Lower US labor costs for a doohickey do not guarantee a domestic US manufacturer, if there is a more productive use of those resources in the US. It can be beneficial to the US to import a good for which it is the low labor cost producer, if there is a better domestic use for that labor and capital.

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Various jobs by HPPSC Sep-2011

Published by government jobs for her blog governmentjobss.blogspot.com
Himachal Pradesh (HP) Public Service Commission (PSC)
Nigam Vihar , Shimla-171002 (HP).

Online OR  Offline applications are invited for the following posts :

1. Senior Planning Draughtsman, Class-II  : 03 posts  in the pay scale of Rs.Rs.10300-34800 + Grade Pay Rs.4200/- 
2. Planning Officer, Class-I, Gazetted : 02 posts in the on contract on the pay of Rs.10300-34800 + Grade Pay Rs.5000/-
3. Assistant Town Planner, Class-I, Gazetted : 01 post, Pay Scale: Rs. 15600-39100+ Rs.5400 Grade Pay
4. Principal (B.Pharmacy College), Class-I (Gazetted) : 01 post, Pay Scale: Rs. 18400-22400/-
5. Assistant Professor (Pharmacy), Class-I (Gazetted) : 0-1 post, Pay Scale: Rs. 12000-18300/-
6. Lecturer (Pharmacy) (B. Pharmacy College), Class-I (Gazetted) : 04 posts, Pay Scale: Rs. 8000 - 275 - 13500/-
7. Scientific Officer (Physics and Ballistics) Class-II (Gazetted) :  01 post, Pay Scale :  Rs. 10300 - 34800 + Grade Pay Rs 4400/- P.M.
8. Deputy Director, Zila Sainik Welfare Class-I (Gazetted) : 04 posts, Pay Scale : Contractual Amount Rs. 10300 + Rs.5400/- Grade Pay
9. Assistant Geologist, Class-I (Gazetted) : 01 post (On contract basis), Pay : Rs.10830/- P.M.
10. Assistant Engineer (Environment) Class-I : 02 posts, Pay scale : Rs. 7750-14500/-
11. Medical Officer (Dental) Class-1, Gazetted : 42 posts On contract basis, Pay :  Rs. 21000/- P.M.
12. Assistant Engineer (Civil) Class-I (Gazetted) : 08 posts, Pay scale : Rs. 15600 -39600 + Rs.5400/- 
13. Acharya (Sanskrit College Cadre) Class-I (Gazetted)  : 16 posts on contract basis, Pay :  Rs. 21600/- P.M.
14. Headmaster (School Cadre) Class-II (Non Gazetted) : 212 posts, Pay Scale: Rs. 10300 - 34800 + 4400 G.P.
15. Principal (College Cadre) Class-I Gazetted : 03 posts, Pay scale : Rs. 12000-18300/-
16. Assistant District Attorney Class-I Gazetted : 02 posts, Pay Scale : Rs. 7000-10980/-

Application Fee : Application on the specimen form duly completed should be accompanied by examination fee of Rs. 250/- (Rs.63/- for candidates belonging to SC, ST and OBC categories of Himachal Pradesh only), through Bank Draft payable in any branch of a Bank at Shimla to the Secretary, H.P. Public Service Commission, Shimla-171002 for Offline mode and for Online mode candidates pay Rs.250/- (Rs.63/- for SC/ ST/ OBC of Himachal) through a challan by cash in the branches of Punjab National Bank.

How to Apply :Either  Apply Online at HPPSC website upto 22/10/2011 or Apply Offline by sending the OMR application to the Controller of Examinations, Himachal Pradesh  Public Service Commission, Nigam Vihar, Shimla-2, along with above mentioned documents. Last date is 22/10/2011.

Please view further details, syllabus, scheme of exam etc. at  http://www.hp.gov.in/hppsc/file.axd?file=2011%2f9%2fAdvt-VIII.pdf  and for online submission of application, syllabus, details etc., please visit the website http://www.hp.gov.in/hppsc/ and please see left sidebar (bottom)

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HP PSC Clerk and Stenographer jobs Sep-2011

Published by government jobs for her blog governmentjobss.blogspot.com
Himachal Pradesh (HP) Public Service Commission (PSC)
Nigam Vihar , Shimla-171002 (HP).

Application are invited from only bonafide candidates of Himachal Pradesh for the following posts in on or before 21/10/2011,by 5.00 PM. Last date for receipt of applications for the candidates residing in Bharmour and Pangi Sub. Division of Chamba Distt., Dodra Kwar Sub Division of Shimla Distt., Kinnaur and Lahul Spiti Distts of Himachal Pradesh, whose applications are received by post from these areas is 05/11/2011. :

• Clerk : 07 posts on contract basis, Pay :  Rs 7810/- P.M. consolidated
• Junior Scale Stenographer  : 02 posts, Pay Scale : Rs. 8710 per Month consolidated

Application Fee : Application on the specimen form duly completed should be accompanied by examination fee of Rs. 250/- (Rs.63/- for candidates belonging to SC, ST and OBC categories of Himachal Pradesh only), through Bank Draft payable in any branch of a Bank at Shimla to the Secretary, H.P. Public Service Commission, Shimla-171002 for Offline mode and for Online mode candidates pay Rs.250/- (Rs.63/- for SC/ ST/ OBC of Himachal) through a challan by cash in the branches of Punjab National Bank.

How to Apply : Application in the prescribed format should be send  to the Secretary, Himachal Pradesh  Public Service Commission, Nigam Vihar, Shimla-2, along with above mentioned documents. Last date is 21/10/2011.

Please view further details and application format at http://www.hp.gov.in/hppsc/file.axd?file=2011%2f9%2fAdvt+clerk.pdf

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CDAC Hyderabd Project Engineer jobs Sep-2011

Published by government jobs for governmentjobss.blogspot.com
Centre for Development of Advance Computing (CDAC),
Plot- E2/1, Block- GP, Sector- V, Salt Lake city, Kolkata-700 091

Centre for development of Advanced Computing (C-DAC) a scientific society of the Ministry of Communications and Information Technology, Govt. of India. C-DAC Kolkata invites Online application for following posts of Project Engineer on contract basis :

• Project Engineer-I (PE-I) : 03 posts with a consolidated monthly salary of Rs. 22500/- per month, Age : 30 years
• Project Engineer-II (PE-II) : 04 posts with a consolidated monthly salary of Rs. 27000/- per month, Age : 35 years

How to Apply : Apply Online at CDAC Kolkata website upto 08/10/2011.

For more and complete details, please visit http://cdackolkata.in/Divisions.php?id=Careers&lang=English


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The IKEA Effect: Loving What We Make Ourselves

From Neoacademic, "Unfolding the IKEA Effect: Why We Love the Things We Build" by Richard N. Landers:

The IKEA Effect refers to the tendency for people to value things they have created/built themselves more than if made by someone else – in fact, nearly as much as if an expert had created the same item. ***asking consumers to do a little legwork, you can increase their belief in the value of the product they have created, even if it would have been better constructed by professionals. Perhaps the best-known application of this principle is the theory’s namesake, Swedish furniture manufacturer IKEA. IKEA furniture is sold in boxes, with sometimes a great deal of assembly required.

Read the complete post here.