Tuesday, August 12, 2008

Does Any of This comes with a Warranty?

Use of Private Contractors to fight Wars have been criticized since the time of Carthage, another War which did not work out well for the Employer. The Bush administration will finally reach $100 billion spent on Private Contractors this Year. The article does not relate how much of those funds went to actual Mercenaries, but I would estimate their employment cost about 40% of the Total. I have considerable ambivalence towards such Expenditures, sure that highly skilled professional soldiers deserve the higher Pay of Mercenary Contract. Patriotism is fine, but does not grant what is a healthy retirement anymore. The opposite Side of the Coin says that War becomes too expensive (not a bad thing!), and that the Hiring Agents make too great a Reward for Recruitment–which is far easier than ordinary military recruitment, due to the enhanced financial payments. I personally would attain the military training associated with regular military service, then opt for the higher Wages; what this does for maintenance of regular military forces stands as the real Issue.

This article sounds good, but is it? Fuel, Fertilizer, and Seed have all raised in Price since the run-up in Grain prices, with Property taxes to follow. Farmers can raise soybeans for $11.50 per bushel, and Wheat for $6.50 per bushel, but cannot raise Corn for $5.90 per bushel. Business personnel who doubt this should check out the Price-tags placed on Agricultural Equipment; such equipage necessary to attain the new Grain yields. Economists complain about the Farm Support programs, yet the operation of American Grain markets dictate such Support features. Elimination of Farm Support will automatically raise Grain prices about $2/bushel, after swiping out about half of the Farming operations, and the hoped-for recovery.

I will throw in this Post by Tyler Cowen about Walmart. Many may have misgivings about Walmart including myself, but I took a payoff yesterday; obtaining a new battery for the old Pickup truck for less than $60. It carries a 2-year Replacement warranty, plus a 72-month pro-rate. I had not bought a new battery in about 15 years–Good Luck and Car replacements, though I remember than the battery with installation cost me $140 then with a 1-year warranty. Walmart may owe its success to the fulfillment of Consumer needs, not simply low Prices; I especially enjoyed the lack of Cost for Installation. Know ye the Beast, before casting it into hell. lgl

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