Metropolis Opinion

Efficiency and Low Average Cost

We had been arriving at 21 century, and now we are living in globalization and technology environment. If we look back at green revolution when agriculture and industry were starting to grow up, Technology was created to help human in their job. While human only has two hands, he couldn’t make more. This is the philosophy why technology was created. Technology has been playing many rules and important rules in all aspects. We need Technology. Sometimes, technology is described as a external factor, to help our hand, help our feed, help our mind to make more result in our job. When Adam and Eve worked as farmer, they need mattock, cow (to plow the farm) and irrigation. Mattock, cow and pipeline irrigation is technology. Cow is replaced by tractor; mattock is also replaced by tractor, ancient irrigation is replaced by modern pipeline irrigation and maybe lumber mill.

This is a stupid metropolis opinion, talking about Technology Vs Labor. Who get the benefits, Employee or employer?

To describe about technology and labor is very sensitive because labor without technology is meaningless and otherwise. The both still help each other. The point is how much percent technology is required and how we combine technology and labor percentage so we get lower Variable Cost (VC)

The graph above represents that company expects to produce more goods with lower VC, closer to zero. Full Article »

Government has responsibility to education, formal education through make a good decision in law and rules in order to all citizens have full access to education to avoid and to decrease blind people, decrease poor people. Education in many cases is related to how to increase income per capita.

When social benefit is larger than social cost, government has success, although government has loss in money. I have learned at welfare countries, learn about how they services in education and the education create multiply effect to others. 

Investment to people on education is believed for experts, governments, World Bank that education is the best way to solve all problems in poor countries and also rich countries. 

For example, Full Article »

Hey Government, Please Give me a job! Poor Tom

One year in Kindergarten, Six years in Elementary School, 3 Years in Junior High Scholl, 3 years in Senior High Scholl and 3 – 5 years in university. It means there 18 years of our life is school. If you enter kindergarten at five, you will pass your formal education at 23 years old then go to labor force.

My opinion in this section is talking about specialization.

Many people after pass his 18 years formal education, then goes to labor force, finally find a job but differ or hasn’t relate to his basic (specialization) in his formal education. A chemistry works in official public relation staff. He left his formal education and go to new world when he doesn’t know anything about public relation.

Many workers came from different basic or specialization. Why?

Every year, more than 500.000 new fresh graduates go to market force. We can say that demand on labor (come from employers) less than labor supply (come from employees). While Demand less than Supply, Labors are fight force to get job. So specialization is useless because. Full Article »

I have post in earlier article, Time lag and Intervention talked about how long time lag is needed in order to make intervention (cut interest rate) work.

As we see, time lag maybe runs in short time or long run; while time lag work, what the impact or reaction when time lag is working. Reuters to day, send us the good report (actually bad report to American employee) because the impact from interest rate intervention by FED doesn’t work till now.

According to Reuters, The Labor Department on Friday said non-farm employment fell by 80,000 jobs in March, the biggest decline in five years. Financial markets saw the drop as reinforcing the need for further Federal Reserve interest rate cuts.

This is just the beginning; FED expectation on their interest rate cut doesn’t work well. Time lag make unemployment rise. The report is bad news but it’s real. Full Article »

Natural Management, An Art and Science

All educations; science, biology, mathematics, law, art and design, computers, doctor, goes to one goal, make money to survive. Yeah! Economic is also included to those education. Those educations go to one goal, Make money based on its core, after make money, buy some food, and eat growth, reproduction and death in the end.

An example below can explain my topic.

A lawyer, after passes his formal education; gets back to his place (town) and open a firm (lawyer office). He hires some staff. Let us see. In university, in university, he didn’t teach about how to manage a firm, specifically he didn’t teach about how to manage formal business.

Not only the lawyer, most people from another basic formal education (except economic, business, management program) have a problem if running a formal business. Accounting reporting, management plans, calculating and analysis cost are difficult for them.

Maybe the lawyer has hired an accounting and manager to run his business or help him to manage the firm, but he must understand about them all. Don’t let your staffs run the business and you don’t know at all because you haven’t business basic.

Actually management is natural and art. Human know well about it. Simple example, if he can manages his time it means he manage it base on his natural talent.

Modern and legal business need more than talent although history teaches us that many success stories came from people without formal and legal business education. If those people are born with management talent, they didn’t need to get scholar in business education. Otherwise people have some trouble in management talent; he must take or enter to business formal study to sharp his talent in business.

Back in topic! Full Article »

The topic is just a topic but the content is more deeply and talking our life and world trend.

I remember my grand dad story. In the past, they just become farmers, fisher, gold mine, traditional trader (barter method) to survival. It is a simple to survival. No formal education needed. All people in the past did. Adam and Eva also did. Land feed them. An Indonesian idiom said ‘More children–more Money (more fortune). Children helped their fathers as farmer too. So as we see, when more labors (children), more output was created.

The story is only story and behaves in the past and not now. Today, if you have no formal education, no skill; you don’t dream to get best life. To survive without education isn’t good in the present day, more over you will be kick out from the system. No education means no money.

The main goal of our life are sex (reproduction) and feces. Education and skill are  tools how to reproduce (reproduction) and feces well. If you have no money, your wife can’t reproduction well, your kids (s) haven’t enough nutrition, no school, no education, and at the end kid(s) can’t make money. No money means any food to eat. No food to eat means you can’t do you your destiny, making feces.

We can’t fight force against world’s trend. We must follow it. Having a good nutrition, sex (reproduction) and making best feces become bad if you haven’t money. So education and skill are main part to survive. What is my advice? Increase your education by schooling and follow those courses (based on your talent). World now becomes closed and cruel. No education will kicked out and nobody cares about you. You are the government garbage and also economic garbage.