Friday, May 11, 2007

Competing With Low Cost Competition

The current war budget show down brought this to mind: when big corporations compete with smaller competitors with lower fixed and lower variable costs... they'll lose (Or at least they need huge subsidies and protections like the old integrated steel mills... and then lose).

So consider this paragraph:
The bill approved by the House would provide $42.8 billion total, with about $30 billion directed to the war effort for the next two months. It requires the president to report by July 13 on how the Iraqi government is performing in building its military and moving toward achieving political unity. Congress would then vote a second time on whether to give the administration the remainder of the money — about $50 billion — to maintain operations in Iraq through Sept. 30 or to restrict that money to deployment.
$30 + 50 equals $80 billion for war operations through September. What are the insurgents spending for their share of the conflict?

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1 Comments:

Blogger Jason said...

Asymmetrical budgeting?

Monday, 14 May, 2007  

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