Dear Mark,

Thanks for answering all my questions to my satisfaction.

Note: The other sub-plot in Atlas Shrugged was the metal industry, if I recall.

P.S. John Galt is a wargame hobbyist that lives in the Bay Area.

BT


Tracy Johnson
MSI Schaevitz Sensors 

> -----Original Message-----
> From: Mark Wonsil [mailto:[log in to unmask]]
> Sent: Thursday, March 18, 2004 10:33 AM
> To: Johnson, Tracy; [log in to unmask]
> Subject: RE: [HP3000-L] OT: Is Atlas Shrugging? [was: More Raw Meat]
> 
> 
> HP-3000 Systems Discussion wrote:
> > Question 1:
> > If the price of steel is raised 400% to 800%, will the cost
> > of domestic steel production still be less than from 
> foreign sources?
> 
> You interchange the terms cost and price, so I'm not sure what you're
> asking.  The cost of domestic steel would be the same, but if 
> demand is high
> and foreign steel gets more expensive, then the domestic 
> mills should earn
> more profit (price - cost).  Wirt is correct.  There is 
> probably a lot of
> domestic capacity that could come online.
> 
> > Question 2:
> > Will not raised steel cost, regardless of the source, infringe
> > on our ability to produce goods for the market vis-a-vis other
> > countries?  (Considering the U.S. higher labor rate?)
> 
> If the whole world is paying more then the effect would be 
> minimal.  This
> contrasts to the steel tariffs which indeed infringe our 
> ability to produce
> goods for the local market and in fact put some companies out 
> of business.
> 
> > Question 3:
> > Will Americans be able to afford a higher cost of products
> > caused by the above, or start learning to 'do without'?
> 
> Do you mean substitute or innovate when you say 'do without'? 
>  If the market
> can't afford it, someone will come up with a method to 
> replace the expensive
> product or more capacity will come online to earn some of 
> these big bucks.
> (This all assumes that politicians don't mess with the market 
> to prevent
> 'gouging'.  In this case you are stuck with shortages and rationing.)
> 
> Previous Tracy wrote:
> > Atlas Shrugged anyone?
> 
> I know it's been awhile since I've read the adventures of 
> Francisco and
> Dagny but I don't understand your reference.  In Atlas Shrugged, the
> intelligentsia gets fed up with the micromanaging of society by the
> government and decides to let the chips fall as they may by going on
> strike.*  If your post is to suggest some kind of government action on
> behalf of steel then I can only ask, "Who is John Galt?"
> 
> Mark W.
> 
> * Condense two weeks of reading to two minutes:
> http://www.sparknotes.com/lit/atlasshrugged/summary.html
> 
> 
> 
> 

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