Will More Companies Seek Bankruptcy As Opening Up Continues?

Before the COVID-19 pandemic hit and the U.S. vs China trade war, JIT (Just in Time) or also known as the Lean Manufacturing method was the way to finish up production of a product line that is fast to bring the products to the market. JIT was made popular by Toyota in the 1930’s “The Toyota Way” production method. This method allows any company not to stock up raw materials and be overburdened with materials and parts in the production chain inventory, but instead, any company that uses JIT can just rely on an overseas or local third party to quickly deliver whatever stuff that a company needs to finish up production of a product line. JIT saves time, cost, and improves the efficiency of manufacturing. Unfortunately, the pandemic hit in early 2020 led to the shutdown of most parts of the world, and JIT isn’t viable as before. Shipping became more difficult, and shipping costs were rising tremendously. Furthermore, companies rather cut costs and shored up cash to protect the business during the uncertainty of the pandemic COVID-19. This pushed the JIT supply chain to the brink of collapse since companies weren’t ordered raw materials and whatever parts so freely as before.

The U.S. vs China trade war is still an ongoing thing, and JIT won’t be taken up favorably by the United States. The United States doesn’t want to be overly dependent on China for crucial and mission-critical materials and parts. One perfect example of this is rare earth minerals. China has cornered the rare earth mineral market, and with such influence, China could always use its power to subdue the United States to China’s demand by not selling rare earth minerals to the United States. Rare earth minerals, although the market isn’t big, these minerals are the absolute must for most electronic stuff that every country needs. To produce an electronic vehicle, smart TV, or just about any other electronic thing — rare earth materials must be present for such a thing to be successfully made. JIT is all about relying on a third partner/country to provide the raw materials and parts, but this could become a security nightmare for the United States in the rare earth mineral example. The pandemic has had only increased the divide between the United States and China in regards to how a global supply chain should be reformed onward.

As the United States and China try to promote different supply chain routes and methods for the globe, locally located companies aren’t yet weaning off the crisis of shortage of materials and parts such as microchip shortage — due to shipping difficulty and countries’ shutdowns across the globe — due to the pandemic is still an ongoing thing since many countries have yet to adequately allow the populations to be vaccinated with COVID-19 vaccines. While the shortages of everything are on the menu, companies are trying to alleviate many shortages as possible by hoarding raw materials and parts. Some companies are trying to overproduce the finished products as these companies have seen the demands of goods rising to an unseen level since the pandemic hit. Thus, rising demands produce rising inflationary prices of finished goods. Shortages of raw materials also push the prices of raw materials to be more expensive such as lumbers. As raw materials get expensive, the expense would pass on to the customers in the finished goods. In general, finished goods are more costly as the demands are high and raw materials’ shortage. With high demands come shrewd business sense, and so companies would go overdrive in producing more finished goods, The question is then when the COVID-19 pandemic slowly goes away and the world is opening up again just like how it was in 2019, services will come back to life, and customers would spend less on goods but more on services — how are the demand bubbles of physical goods would fare in such a scenario?

I think as the opening up roaring back, the inflation would collapse into deflation in how physical goods are being priced — while innovation would continue to drive the costs down of stuff such as electronic — and so many companies that overly produce the finished goods will face the glut of inventory. This could be so inefficient that these companies may wish JIT would become fashionable again. Thus, I think the future earnings of such companies will be way less impressive than most investors would have liked to see. The service sector may pick up again, but companies that are in this sector may still have to face bankruptcy since these companies borrowed a lot of debts during the pandemic COVID-19 service shutdown across the globe. Thus, I don’t think we will see the normal as how we had gotten used to before 2020. Companies with heavy debts should be valued less even if these companies fall into the value investing category. This could be an opportunity or a value trap kind of thing. We could not know an overly burdened indebted company is a bargain or a value trap since such a company could file bankruptcy easily.

Can Role Playing Help Create Jobs?

When it comes to video game, role playing is always an element that has to be considered in developing a video game.  How come?  Whether role playing is essential to the whole video game or not, it does serve a function of allowing a game developer to know what direction that he or she or an entity needs to take in order for a video game to be coherent.  Who could have thought though that role playing in video game is too does serve a purpose in reality.  What I mean by this will be expanded later on within this blog post, but for now let me doodle about the reality.

Within a family, everyone has got a role to play.  Dad and mom work to feed kids, and kids go to school so they can be well rounded so one day they can take over the roles of mom and dad.  The cycle spins on into the end of humanity’s time.  Right?  Well, it has been like this for thousands of years, but thousands of years past had never seen the planet earth that is so overpopulated as now.  Furthermore, technologies of today allow robotics to take over many functionalities that humans once played a central role in producing and servicing products and services.  Can the traditional role playing of the reality be sustainable?

As technologies become more productive, the job market has less needs for some human capitals and as the surplus of human capitals increases each day through lifestyle improvements made possible by advanced technologies and medicines, humanity is now facing the possibility of seeing less available roles for role playing by us humans.  On the top of everything, the world is evermore interconnected to the point that world companies can be shuffled around parts of the world to receive the benefits of having tax breaks and political favors and whatnot, and this will furthermore pushes parts of the world to experience job losses.  With less jobs to go around as modernity’s conditions have it, there will be less roles for role playing to go around!

The question is, what can we do about this?  The traditional thinking is that kids must learn the best of the best of whatever (e.g., get into the best school, get the best outside school experiences, etc…) in order for them to be ready to join the modernity work force.  Without the necessary experiences and backgrounds, we say that these kids will not be well rounded for life.  Nonetheless, we know that the future might not have enough roles for role playing to go around, how on earth by having the best of the best experiences of whatnot can help these kids compete in such environment?  Perhaps, role playing is the key to answer this very question?

I imagine that at such a point in the near future, we might have to settle with how well rounded kids and adults alike taking turn playing the same roles.  Not every teacher can teach the same subject!  Not every teacher can always be a teacher!  Nobody is omnipotence in knowledge and whatnot!  Each and every one of us humans on this planet does serve a purpose, and this purpose is to live as well as we can.  So when each and every one of us can switch roles from time to time accordingly, each and every one of us can learn new experiences.  Furthermore, switching role allows us humans to be able to either partly or fully resolve the unemployment problem, because there will be roles for role playing.

Of course, how do we carry out this role playing idea in reality is totally a different story.  After all, we have owners and workers, right?  Owners are the ones who actually spend their own money to keep their businesses humming.  In the corporation types of business, the owners will be more about shareholders and CEOs, because things are more decentralized.  Nonetheless, what if the true owners of whatever entities decide that except the first among equals, everyone else is a fair game for role playing.  By doing this, you never know a company can get lucky in developing a talent that is so competitive that would blow out one’s mind.  How?  By giving a person a chance of learning new experiences in a new role, one might never know that such a person might find such a role has shaped a person into a more capable person in whatever.  Furthermore, role playing ensures one from hoarding power and does stupid unchecked things that might harm an entity.  Why?  After all, he or she may assume that his or her next role might not be so glamorous, and so it would not be wise for such a person to be power tripping.  Of course, there are a lot of things that might be disadvantages for role playing.  Here I list few disadvantages:

  • Person who switches to new role might not like the experiences and perform poorly.
  • Without a permanent role, a role playing person might take a role less serious, thus such a person might perform lazily.
  • In a powerful role, a person might behave badly since he or she may assume that such a role might never be there for him or her to role playing again.
  • How do a company hire and fire an employee in role playing job market?
  • Do a company fire a person from a role only, or do a person has to be fired from the company entirely?
  • It’s hard for a company to determine the salary or wage for a role player in constant role playing changing environment.  This might make the company’s payroll a lot more complex.
  • Important and powerful roles might have the power to fire and hire.  With great power comes great responsibility, can these roles be safe to have them be switched by various role players?  Perhaps, such a firing and hiring responsibilities should only be in the hand of first among the equals?  This means, first among the equals has to get down and dirty when it comes down to hiring and firing.

Obviously, there are a lot of things that might be negative for switching roles in the reality, but there also might be a lot of things that are positives when role playing does perform.  One most noticeable positive I had mentioned earlier is all about there will be enough roles for role playing.  With less job losses and more jobs to go around, more roles to play, the world will see less poverty and foods will be on more tables.  Bring home the bacon will no longer be a problem as more bacons can be brought home by role players.  In my opinion, role playing is a possible solution for a future job market where there are less jobs to be found.  It’s just an idea and I’m not an expert on assessing the big picture of a future job market, and so I do think you read this blog post with a grain of salt.

Community Broadband Networks Want A Fair Game!

Community Broadband Networks put out a video to ask people to seriously question their states on the unfairly advantage in lobbying power that big broadband corporations have in their arsenals — these broadband corporations are lobbying the community broadband networks out of existences.  The video points out how big broadband corporations unwillingly to compete and provide faster broadband speeds, consequently nullifying the competitiveness of small businesses within United States of America.  How about prices?  This too is too expensive for most businesses and everyday folks who use big broadband corporations’ broadband services, the video claims.

I’m certainly do not know who holds the truth here, but I love to see community broadband networks get to provide their broadband services for their communities, because only competition will bring the prices down and improving the services for all.  My obvious question is, why would anyone want to pay more and get so so services if somebody has a choice, right?

Source:  http://www.huffingtonpost.com/christopher-mitchell/community-broadband-beats_b_890670.html