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/cgi-bin/YaBB.pl General Category >> The Cafe >> Question about revenue earnings... /cgi-bin/YaBB.pl?num=1478739520 Message started by raydawg on 11/09/16 at 16:58:40 |
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Title: Question about revenue earnings... Post by raydawg on 11/09/16 at 16:58:40 I have often wondered how much revenue a automobile generates. I can't find any study that gives any answer. Maybe one of you might know ;D So, a car is made on the assembly line, but prior to that parts are made. Those parts take employees, etc, they spend their earnings on food, etc. Now the parts are to be assembled. More employees earning money and spending. Trucked, shipped to dealers. Salespeople, etc, all associated with a car dealership all earn a living from the "car". Now its sold, you buy gas, etc, service it, etc. You keep it for so many years, sell it, and earn revenue selling it. The new owners buys new stuff for it, service, repairs, etc. all of these people spend that money on other things. Repeat selling a car before it becomes scrap. How much do you think that car contributed to our economy ( based on a mean average of car value ) ? what I am trying to factor out is this, a $30,000.00 car generates how much more revenue over its life time? does this make any sense? :-[ |
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Title: Re: Question about revenue earnings... Post by engineer on 11/09/16 at 17:46:50 If a car costs $40,000 and you consider $40,000 to be a typical wage for someone in manufacturing then a car generates one man year of work because money is the convenient means of exchanging labor and goods. That man year is divided up among many people but it can't exceed the total. At least that is the way I see it. In the old days you could always figure as a rule of thumb that about half the cost of a manufactured product was material and the other half was labor and overhead including taxes. Now of those materials that make up the half, they also follow the same rule, half material, half labor. And so it goes until you get down to the mining company and then a portion goes to the holder of the mineral rights. Only one entity makes much money doing this, the government because they get to tax everything and everyone at every stage of every little nut and bolt and piece of mineral ore that goes into it. |
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Title: Re: Question about revenue earnings... Post by justin_o_guy2 on 11/09/16 at 18:37:48 It's synergistic. Some parts are outsourced. Shipping happens. Every wage earner who made money by building the car Buys stuff, helping to keep shops and restaurants and employees busy in their neighborhoods. It's a brilliant question, one that I would like to see answered by more than one person. An economics professor, someone who has a business degree, heck, who knows who could get a different take on it? Put a few alternators on it, a radiator, it got wrecked, put a fender on it, paint, tires , alignments, transmission, |
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Title: Re: Question about revenue earnings... Post by Dave on 11/10/16 at 03:58:30 And to make it even more meaningful (and complicated), maybe you should also consider the revenue from the fuel, tires, oil, replacement parts the car uses (and associated taxes), the license and insurance fees, the insurance, loan, shipping......and the ICEE you stop and buy on your drive home! I have a feeling that the $ 40,000 car might well create $ 80,000 to $ 100,000 worth of revenue over it's lifetime. |
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Title: Re: Question about revenue earnings... Post by RaleighGuy on 11/10/16 at 04:17:49 And, to complicate matters even further.... To make a particular brand of car sell at all, you'd probably have to factor advertising into the formula at some level. And don't forget about the costs of writing and distributing the documentation (owner's manuals, tire warranties, SiriusXM radio instructions, etc). And, car manufacturers have to pay those crash test dummies lots of money to keep sitting there taking all that abuse from side impact tests. OH YEAH, and also there's the folks who apply that new car smell in some mystical fashion. ;D |
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Title: Re: Question about revenue earnings... Post by raydawg on 11/10/16 at 04:44:44 Yes, you guys got it.... That is what I am trying to figger out. Let me try this anology: I buy an apple seed for a dollar. This is my first transaction of this endeavor. A buck. I buy a shovel, water bucket, etc, to plant it. Through its early non producing years, tho not creating revenue, I still spend on it. But, the first cost was a buck. Now it matures and gives crop. I hire help to harvest, etc. We sell it at market, etc. Everyone that helps move that apple to the point of consuming it, prospers from it, my buck.... It gives greater yields, more folk to move the crop to consumption, and they all spend that earnings on things they need. One thing is needed to create this revenue stream, a commodity, not a scheme, something real and if agreed upon value. Once that is established, it can almost become self sustainable as long as nothing is done to restrict its flow.... You see what I mean? I would love to work up a number to see just what it is we are looking at ;D |
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Title: Re: Question about revenue earnings... Post by Dave on 11/10/16 at 05:12:14 It would be very difficult to follow the revenue stream to the end(s), as the money would spread out like a drop of oil on a smooth lake. It would start at the very beginning with the folks that build the buildings where the car is designed or create the materials that are used to build the car....and it go all the way through until the car is recycled as scrap. Each and every person along the way would take a portion of that money and send it out to other places for food, clothing, housing, insurance, hobbies....and that money would then be spread out again to pay the expenses of those workers - it is an endless stream. |
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Title: Re: Question about revenue earnings... Post by raydawg on 11/10/16 at 05:30:30 Yes Dave, absolutely! Love the drop of oil analogy, perfect! Maybe a two prong chart, pre spending versus production spending and start our revenue stream there. What I am trying to establish is that a revenue stream needs a real product as it root or foundation to create revenue. As some already talked about the car producing revenue via taxes, insurance, etc, but that is not a real product of commodity but a scheme, like betting or gambling, you don't crash the car, which might include drinking at a bar then driving home, another business that benefitted off the car, so to speak ;D |
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Title: Re: Question about revenue earnings... Post by stewmills on 11/10/16 at 07:01:48 In some seedy parts of town, the ladies of the night generate lots of revenue inside the cars too...let's not forget that in the equation :o :o :o |
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Title: Re: Question about revenue earnings... Post by Dave on 11/10/16 at 07:13:05 A few years ago we had a seminar at our office, and one of the things that scared me was when he said that 80% of the US economy was "service". That is frightening to me, as it means that only 20% of folks are actually building and selling something. So 80% of the money is moving around providing haircuts, fingernails, massages, insurance, healthcare, banking, retail sales, lawn mowing, shipping, car repair...maybe even construction (I am not sure all that is included in the definition of service).....and only 20% of the economy is making a produce (growing food, building cars and trucks, building tools, making building products, etc.). The US became prosperous during the industrial revolution by building products and exporting them to other countries, and we could do it well as we had natural resources available and motivated workers to build the products. When the ability to utilize the natural resources economically is taken away, and when the factories are moved to other parts of the world and money stops flowing "into" the US.....how does the US stay economically productive? A "service industry" economy reminds me of the following story: A farmer had a horse in his field that was a bit neglected. One day a neighbor stopped by and offered to buy the horse, and it was sold to him for $ 40. The new owner took the horse home and gave it a bath and a good brushing, and the horse looked much better. A few days later the original owner drove by and saw his old horse, and decided he would like to have it back.....so he stopped and offered $60 for the horse and it was accepted. When he got the horse home he trimmed the mane and tail and combed them out. The other farmer drove by a few days later, and was impressed by how nice the horse looked, and he bought the horse back for $ 90, and he took the horse home and trimmed the hooves and applied polish to them. A few days later a farmer from the next county saw the horse in the field, and bought the horse for $ 120, and hauled him over to the next county. A few days later the original farmer drove by, and saw the horse was not around - so he stopped to ask where "their" horse was. The farmer told him that he has sold the horse to another farmer from the next county.....and the first farmer said: "You fool - we were making a good living off that horse!" (Sorry if I rambled.......I can remove this post if it is Off Topic or belongs in the TT). |
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Title: Re: Question about revenue earnings... Post by Serowbot on 11/10/16 at 07:42:51 7D464B5C4D415A5C474F425D2E0 wrote:
Blowing my mind.... A single car is running the economy in perpetuity... The revenue generated by the sale never goes away,.. it just gets converted into different goods, which in tern get converted into other goods. We can all stop making cr@p... we have enough of it. We just need to keep circulating the cr@p we already have... ;D |
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Title: Re: Question about revenue earnings... Post by oldNslow on 11/10/16 at 07:53:01 Quote:
That's what they did in Cuba. The whole economy revolves around a '57 chevy. ;D http://talkingpointsmemo.com/gallery/cuba-time-capsule-american-cars |
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Title: Re: Question about revenue earnings... Post by raydawg on 11/10/16 at 08:10:24 Yes Dave, again, right on. This is why I am trying to find a common item, that has not been legislated away yet, that provides labor, which is associated with blue collar folk who are the middle class and backbone of America, or it use to be. This opportunity is greatly diminishing and I feel eroding the very foundation that made America great. I need a product where we can figure out its true worth to our society at its root. Make anymore sense? |
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Title: Re: Question about revenue earnings... Post by Dave on 11/10/16 at 09:32:47 When I was young I lived in a rural area with a nearby town. My dad sold insurance....he was the only dad among my close friends that worked in a "service" business. The other dads were crop or dairy farmers, or worked at one of the factories in town (Deming, Mullins, Bliss, Eljer), or they worked in the strip mines. It was the factories that made the town go......and the town provided services to the factory owners, management and laborers. The money was brought into our town by the factories selling their product nationally....and internationally. |
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Title: Re: Question about revenue earnings... Post by raydawg on 11/10/16 at 10:07:28 Yes, but I use the car because as a symbol and example of policies drafted and implemented in Washington DC , like energy, global warming, etc, affecting the automobile industry, etc, but what is the real revenue lost cost associated with more stringent restriction imposed on one program, to advance another different program. I think the middle class needs to know this, as I believe it impacts them the most. Ok, I hope someone can come up with some baseline formula that we can use to see if this possible link has any validation... |
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Title: Re: Question about revenue earnings... Post by RaleighGuy on 11/10/16 at 11:12:22 5E485F425A4F42592D0 wrote:
Serow, that reminds me of my latest yard sale sign. It had a note at the bottom that said, "Buy my old crap so I can afford some new crap". ::) |
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Title: Re: Question about revenue earnings... Post by LANCER on 11/10/16 at 17:14:52 After all the adding, subtracting, multiplying & dividing, the NET VALUE is $37.62. |
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Title: Re: Question about revenue earnings... Post by verslagen1 on 11/10/16 at 17:35:45 Everyone knows the answer is 42 |
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Title: Re: Question about revenue earnings... Post by MnSpring on 11/10/16 at 18:28:00 Interesting. Have had experience with the Reverse. Picked up a LS650. Ran bad, thought It would be a easy fix. It was not, (well it would have been if I knew what was wrong) Point is, I Stripped it, and now having about 1/2 the small parts sold. Have about 1/2 the Expensive parts, still here. And am at 30% more than I paid for it. In Doing the research, a New S-40, would cost about $5,000.00 (+/-) Yet, adding up, all, the ‘Parts’, at OEM Price, it would be, $40,000.00 (+/-) (And you do the labor) So looking further, you buy a cage, at $20,000.00 new. Finance it, and drive it to 200,000 miles. With All the, reg, maintained items. (NOT Considering GAS) You have paid, about, $45,000.00 for something that is now worth about, 4-5, thousand, (Depending on RUST, LOL) maybe 2-3. ’Service’, is HUGE, on ANY, ’Thing’. |
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Title: Re: Question about revenue earnings... Post by badwolf on 11/10/16 at 20:43:18 42, Oh yea, I get it! |
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Title: Re: Question about revenue earnings... Post by SuperBrett on 11/12/16 at 21:35:04 When I bought my last truck I thought about how under our banking system the purchase of my vehicle created about 25,000 the instant I signed the paper. Because banks can loan much more than they have on deposit, this money was basically created out of thin air because I got a wild hair up my nose and financed a new truck. I just wish that money could vanish again if I ever can not repay the loan. I am not bashing the fractional reserve system we have. I would rather have the job I do now and a new truck instead of slaving away at a gold mine all day so our money supply could increase enough for me to buy it and fund all the labor, materials and overhead that went in to making it. |
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Title: Re: Question about revenue earnings... Post by justin_o_guy2 on 11/13/16 at 05:00:39 Wealth creation isn't dependent on a debt based fractional reserve banking system, rather That system is a parasite On your ability to create wealth. Try a few online interviews with G. Edward Griffin and , ohhh, name escapes me,, ill get it .. ill be back. Hit Lew Rockwell site. It's a start. |
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Title: Re: Question about revenue earnings... Post by Trippah on 11/13/16 at 08:47:26 There is no real sustained wealth, it is simply what the people at that moment will trade to get what you have. We use money since trading squirrel pelts can be messy (but was used by the Seneca back in 1970's when they had a todo with the electric co's). So while you may think that production of goods is what makes you wealthy, please check out the Swiss who own stuff all over the world letting those neighborhoods to get polluted while the Alps stay beautiful. ;D ;D ;D |
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Title: Re: Question about revenue earnings... Post by thumperclone on 11/13/16 at 12:06:20 ray back to the apple seed you have to factor in the cost of the shovel and bucket and water not to mention pruning, weed control, insect abatement parts and labor need a bigger orchard!!! |
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Title: Re: Question about revenue earnings... Post by raydawg on 11/13/16 at 15:29:22 5B475A425F4A5D4C4340414A2F0 wrote:
Got me eh...... ;) |
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