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by Karl Denninger
Market-Ticker.org
Read the article.
But pay attention to the punchline:
“When companies make decisions like this, they already have this pre-determined,” he said. “All they want is concessions on the way out. If they’re going to a close a plant, they’re going to close a plant. When you look at the cost of what we are, it’s so minimal that I don’t even think it has an impact on them.
Really?
Labor is typically either the largest or second-largest expense at any firm. There are very, very few exceptions, and those exceptions are found in hyper-competitive industries where margins are razor-thin and the product or service being provided has an extreme capital requirement associated with it.
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