Sunday, January 25, 2015

Chapter 9 and Specialization

In Microeconomics, we learned about how specialization can be beneficial for trading purposes and expand the "Productions Possibility Curve", which is the indicator of levels of output for a given company or industry. This seems to tie in well to Chapter 9 of Schlosser's book discusses how widespread an E Coli outbreak was in the late 90s, but also how it wouldn't have happened prior to the meatpacking giants that became a national name. He mentions how a few companies expanded to enormous sizes and realized how many people they could serve, which is like one specialization for the entire public in economics. Although this sounds like a good idea so that a maximum potential can be realized through specialization, it is obviously a very dangerous game to play. There are numerous benefits to the small, localized meat packers, especially in health risks.

How possible is a system like IBP today?

In Chapter 7, Schlosser mainly discusses the overwhelming effect the trust of the Iowa Beef Packers had on the meat packing industry. The IBP gained control over a lot of the industry in North America and became almost monopolistic, to the point of having to be broken up with antitrust laws. I know this happened a few decades ago, but I was wondering if any kind of control is available to an entrepreneur willing to seize power over a certain industry in the US today, specifically with food. I know there are some companies like Luxottica that seemingly own all the products on the market, but is this also considered a monopoly? Also, how would it be determined by today's standards and how has that changed since the Supreme Court's decision about IBP?

Shift in Danger Concerning Meat

In Chapter 8, the dangers of all shifts and aspects in the meat packing industry were revealed to me for the first time. What I found most interesting about learning all the hazards to the workers was the incredible shift in where that danger was. Early in the 20th century, Sinclair exposed the health concerns to the general public due to the unsanitary conditions of the industry. This was shocking to the nation and many new regulations were put in place. Now we see the hazards on the other side of the problem and little action being taken. This proposes an interesting question as to how much power government agencies of regulation have, and where companies will draw the line between profits and the safety of their workers

Chapter 3 Connections

In Chapter 7, Schlosser points out that wages have decreased recently in meat packing plants and the work that used to draw middle class citizens is now primarily taken by lower class immigrants that are new to the country and need any work they can get. This strategy of hiring workers in need of their jobs, and who are often uneducated, is similar to the strategy of fast food businesses in chapter three. Fast food corporations tend to hire immigrants and teenagers who are less inclined to unionize and demand higher wages and more fair treatment by their employers. This is just another example of the loss of morality in large corporations and the desire for only one thing: money.

Government and Meat

In Chapter 9, the role of government in the meat packing industry is explained. I was horrified by how the government, the Republicans in particular, cared so little about the health of the American people and based their decisions regarding meat regulations almost entirely on their own agenda. The government's number one priority should be the citizens. Protecting the meat industry only protects the wallets of already rich men but poses serious harm to the workers the industry and the entire American people. It's impossible to change the mind of cynical politicians, thug, so the best way to fix this dilemma is to get more funding to OSHA so that regulations are kept to a standard within the industry.

Possible Bias in Chapter 8

In Chapter 8, Schlosser discusses meat packing plants and the danger the workers of these plants face on a daily basis. While it is apparent that working conditions in the meat packing industry are less than perfect there is possible bias in the interviews with actual workers within the plants. I have worked at two jobs and have heard plenty of people discuss their jobs and I have come to realize that complaining about one's work is a guarantee despite some careers being comparatively fluffy to others. Schlosser may have avoided workers who were satisfied with their jobs and only spoke to workers who are inclined to complain. While this helps Schlosser to portray his point, it distorts the truth and could indict an industry based on incomplete reporting.

Friday, December 5, 2014

Dangers of Franchises

Chapter 4 is mainly concerned with franchises. Schlosser goes into detail about how difficult Ray Kroc was to some of his initial buyers to stay competitive. The fees for entry as a franchisee on top of pressure from the owners seems to put a lot of stress on new entries to the field. Schlosser mentioned the study done by Bates that proved that all these factors amounts to more pressure than starting a new business from the ground up. I have spoken to an owner of a Chick-Fil-A before and that seemed to be a very efficient system of starting new franchises. The corporation pays for the land and construction of a new building but limits the owners of each franchise to the top .1% of applicants because they ensure the person looking to start one has a background in business and a plan for the future.