Friday, 7 August 2009

Downsizing as a Way to Reduce Waste


It is a paradox, but the prescription of many economic experts during hard times is to create more waste. This all to often is what economic growth is all about, and it is particularly nasty in the case of small economies.

My favourite economics professor at Cambridge was the growth theorist Lord Kaldor, who was also my examiner on many occasion. Lord Kaldor held that the strongest law in economics was fertility and he associated this with economies of scale and size of productive unit.

Most economists realize that a single enormous plant is now the most efficient way to produce, distribute and sell almost everything. If one can make something smaller as the iPhone has done with computers then one has actally enlarged the something. Accordingly, as the transistor and integrated circuits became smaller they actally became larger on economic terms.

The size of everything is an economic decision and everything in economics is affected by technology. My technology determinism thinking did not go down well at Cambridge University because the more traditional social determinism views of markets and economies held sway. However, our reality is that is you live in a small economy the size of packages of items such as shampoo will be larger because the seller and producer want you to buy more than you need. Think everytime you eat that you are made fatter by oversizing of delivery systems and you will soon see how technologies of scale impact on who you are, who you are with, what you do and don't do. Yes you are a technological not and economic solution!

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Sketches from scratches is a provocative blogspot that has grown out of the Wuh Lax experience. It is eclectic, which means that it might consider just about anything from the simple to the extremely difficult. A scratch can be something that is troubling me or a short line on paper. From a scratch comes a verbal sketch or image sketch of the issue or subject. Other sites have other stuff that should really be of interest to the broad reader. I try to develop themes, but variety often comes before depth. ... more!