In response to:

Price Versus Cost

layopinions Wrote: Apr 17, 2013 10:08 AM
The person making $75k, working 40 hours per week (2080 hrs per year), would earn $4.60 in about 7 minutes and 39 seconds. Even if the person making $500k works 80 hours per week, it still only takes him 2 minutes and 30 seconds to earn that much. I'm not disagreeing with the difference between cost and price, and I understand that the labor of the person earning more is more valuable than the labor of the person earning less. I also agree that human decision making is ignored by politicians. All I'm saying is that time also has to be factored into the "cost" equation.
OldMexicanblog Wrote: Apr 17, 2013 1:29 PM
Re: layopinions,
-- All I'm saying is that time also has to be factored into the "cost" equation. --

Do you really believe that time is not taken into account when costing something?
True Conservative! Wrote: Apr 17, 2013 1:14 PM
It was an example for illustration. Instead of the $3 item, let's look at the effect on a $30,000 new car; where you now have to earn $46,000 before taxes to pay for it! Factor that time in! And, since the same principle applies to everything you buy, the distorting effects of high taxes are considerable!
Ed52 Wrote: Apr 17, 2013 11:40 AM
The time value is valid but the decisions and actions of a high earner within specific time are assumed to be of more value than the decisions and actions of a low earner within the same period.
Piece work used to be rampant but the disparities between skilled, adept, high speed workers and the average worker coupled with short-sighted bosses who thought all workers should be above average created impressions of "unfairness", the creation of the epithet "rate-breaker" and policies, procedures, and contracts that institutionalized inefficiencies.
Wayne371 Wrote: Apr 17, 2013 10:56 AM
I agree with you, but would add that those earning more would likely be in a higher tax bracket, therefore paying more than the $4.60 referred to for those in the lower tax bracket.
Suppose you buy a gallon of gas for $3. How much did it cost you? You say, "Williams, that's a silly question. It cost $3." That's where you're mistaken, because there's a difference between price and cost. To prove that price and cost are not the same, consider the following. Suppose you live and work in New York City and routinely pay $15 for a haircut. Imagine you were told that there's a barber in Boise, Idaho, who can give you the identical haircut for just $5. Would you start going to the Boise barber? I'm betting you'd answer no because...
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