Link: Airplane Maintenance is Offshored

“ I don’t worry much about where maintenance occurs. Indeed, if maintenance can be done for less we ought to buy more, so less expensive can mean safer…. Rather than fearing the offshoring of airplane maintenance we ought to ask how we can expand the concept. Medical tourism, for example, is growing. If foreign airplane maintenance is good enough for Delta then foreign human maintenance is good enough for me.”
Original source: Airplane Maintenance is Offshored

Link: Airplane Maintenance is Offshored

“ I don’t worry much about where maintenance occurs. Indeed, if maintenance can be done for less we ought to buy more, so less expensive can mean safer…. Rather than fearing the offshoring of airplane maintenance we ought to ask how we can expand the concept. Medical tourism, for example, is growing. If foreign airplane maintenance is good enough for Delta then foreign human maintenance is good enough for me.”
Original source: Airplane Maintenance is Offshored

Link: Why Mexico has not become more prosperous—and how it could

“In other words, workers end up in jobs where they are less productive than they might be. Too many individuals who should be workers become entrepreneurs or are self-employed. Efficient businesses are taxed and penalised, while subsidies help sustain unproductive ones. Joseph Schumpeter’s notion of “creative destruction”, in which capitalist competition drives out weaker firms and rewards stronger ones, is paralleled in Mexico by “destructive creation”, quips Mr Levy, in which the environment favours the entry and survival of weak businesses that hinder the growth of stronger ones.”

I don’t understand any of the economic jibber-jabber in there, but I like a food “big systems and complicated” story.
Original source: Why Mexico has not become more prosperous—and how it could

Link: US wages have been flat, despite growing economy

“The conundrum of stuck wages [for “non-managerial workers”?] has vexed economists for more than a decade, but their underlying assumption had been that as joblessness drops — it’s at 4% now — companies will be forced to push up wages to attract and retain workers. Now that that hasn’t happened, the feeling is beginning to creep in that this is the new normal.”
Original source: US wages have been flat, despite growing economy

Link: Investors Gave Snap a Gift

‘You might point out that you own a share in the company that grows in value as the company does, and that right now you can sell that share on the stock exchange for $13.31. But that evades rather than answering the question: What does the person who buys the share from you expect to get from it? The value of a stock in the market is supposed to be equal to the present value of its future cash flows, and there’s nothing about the stock itself that promises you any cash flows. Or you might say that Snap’s directors and officers have a fiduciary duty to you to  maximize the profits of the company and the value of your shares, but even if that were true—it’s pretty debatable—it continues to avoid the question. If Snap made massive consistent profits for decades, it would still never have to give any money back to shareholders, and the shareholders would have no way to force it to. “I own a 1/1,258,171,112 share of a massive pile of cash,” you could say, but you could never spend it.’
Original source: Investors Gave Snap a Gift

Link: What Trump’s Fight with Amazon Signals for American Business

“All nations, of course, suffer some degree of corruption. Mathurin told me a simple test to determine if a country’s corruption level is at risk of reaching a point of state capture: just see if there is a class of entrepreneurs and small-business people with enough confidence in the government and the infrastructure to invest in businesses that can only succeed in a market that allows for the unconnected to thrive, based on their merit. In another chat a few years ago, this time in a crowded deli in New York City, Mathurin pointed out the window at the many shops nearby as proof that this country, for its many flaws, has not been captured. Without even thinking about it, those store owners trusted that their venders and bankers and electricity provider would honor their contracts, that the roads and the phone service would be reliable enough to allow businesses to function, and that, every few years, the turnover of leadership, in either the city or the nation, would not have any dramatic impact on their ability to conduct business.”
Original source: What Trump’s Fight with Amazon Signals for American Business

Link: Trump’s Tariff Plan Leaves Blue-Collar Winners and Losers

“The mills and smelters that supply the raw material, and that would directly benefit from the tariffs, have been shrinking for years. Today, those industries employ fewer than 200,000 people. The companies that buy steel and aluminum, to make everything from trucks to chicken coops, employ more than 6.5 million workers, according to a Heritage Foundation analysis of Commerce Department data.”

Trade is hard.
Original source: Trump’s Tariff Plan Leaves Blue-Collar Winners and Losers

Link: Federal Reserve chair says ‘Amazon effect’ could be responsible for low inflation

‘The “Amazon effect” refers to the decline in traditional retail employment despite expansion in the overall retail sector. That paradox is occurring because of the explosion of online retail, driven in part by Amazon. As online shopping becomes more efficient and widely-used, fewer traditional retail workers are needed. The Amazon theory purports that lower demand for retail labor keeps wages low and holds down the price of consumer goods. But economists are split on the extent to which this phenomenon actually impacts inflation.’
Original source: Federal Reserve chair says ‘Amazon effect’ could be responsible for low inflation