Last edited by OhIsee.Then; 01-24-13 at 11:31 AM.
Here is another example of micro vs. macro. I was advised to buy a house in one of the many developments in the Phoenix AZ area. The data and experts on home values were indicating that buying a home was an excellent investment. I was advised, a micro sample, by a relator to buy an investment house in an area West of Phoenix as we were approaching Phoenix from San Diego. By the time it was built its price would have increased by at least 20k. With that ‘advice’ I remodeled our Phoenix home and sold it almost precisely at peak and bought a home in Michigan were prices had already gone down. About 3 years ago we bought a 2nd home in the Phoenix area near the bottom of its ‘home price curve’, then another in Phoenix area a year later. Both will sell now for much more. Did we do this with macro data on what was happening with home prices?
Last edited by Morality Games; 01-25-13 at 07:54 PM.
If you notice something good in yourself, give credit to God, not to yourself, but be certain the evil you commit is always your own and yours to acknowledge.
Now, I did vote that Labor does exist on a supply/demand curve however unlike other resources I do not believe it should be thought of in the "race to the bottom" mindset we take when looking at other costs.
As for your second example that's fine, but when we are talking about labor, the dynamics internal to a company are MUCH different than the dynamics on a macro scale, it the same fallacy as comparing a household to a country.
I apparently was not clear. (BTY, I was Chating yesterday with someone about this at Homw Depot.) When macro data is collected easily measured numbers are collected, for example the reduced cost of a part when it's manufacture is moved from the States to Tiwan. What is measured is the purchase price. What is delivered is a lower quality part that has to get additional testing stateside that results in a higher effective cost. When I was meeting with staff from more than a dozen companies we would talk about this. More later. Got to go.