Yes, I think most textbooks acknowledge that it’s more difficult in theory.
Maybe that’s why Taiwan is so whacked. Maybe you can model the short-term, long-term difference and get a Nobel prize.
Both, I guess, although I think they’re related. The kind of company people are thinking of when they say “laobans are greedy” have a mindset of using the cheapest possible people to do the cheapest possible version of the work. A few companies (TSMC, say) have gone the opposite way with spectacular success, but they’re the exception.
For the most part, higher-skilled people don’t seem to have a lot of opportunities locally, and end up looking outside Taiwan for work (or starting their own companies, which isn’t ideal – running a company often leaves little time for actually doing that high-skilled work).
A few (non empiric) examples of how the laoban next door is cutting costs:
Lengthening the time between lubrication on machines that are running 10hrs+ every day. Oh that sweet sound of propshafts grinding in their bearings…
Turning off half the lights in his company to not waste electricity. Some parts of the factory are only traversable by using echolocation.
The total absence of any protective gear. You need to weld? Close one eye and wear sunglasses. You want GLOVES because you don’t want to cut your fingers on sharp edges? Are you a GIRL? For what do you need a helmet? Just duck out of the way! Since it’s dark AF in here anyway your hearing should be sharp enough by now to detect any incoming girders early enough.
The sawblades are so dull that I’m convinced the pipes the want to cut are breaking apart by themselves out of sheer pity.
Paying such a low salary that you have to check beforehand if you can afford working there.
Of course everyone gets shouted at, belittled and insulted on a regular basis. You gotta show them who’s the boss.
Where he’s not saving money is his E-Class which is too large for the parking lot and the boot is hanging out on the road. Having a blue truck redecorating the rear end of that car is always a good show. And his Gucci Polos with the print so large it’s visible from the ISS on a cloudy day with the naked eye. His workers are rotating so fast that they probably don’t get to see the whole building before leaving for good. He’ll complain to me whenever possible about his working being lazy and ungrateful.
His newest plan is to move his company to China. We wish him a safe and swift journey.
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If that’s true that’s changing, I believe. TSMC needs more researchers than Taiwan graduates. They’re hiring at second-tier schools now. I’m sure similar things are happening at Mediatek and UMC.
They still get paid less than engineers elsewhere, but a substantial increase in electronics workers will boost incomes for the average Joe in Taiwan significantly.
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High tech is stronger but for average people, German is a place to be.
- 5 weeks paid holidays
- 9 months of unemployed support (including quiting a job by yourself)
- decent and affordable public transportation
-14 months of maternity leave - national health care always covered
- paid education for kids from kindergarten to uni
- no ovee hours
- quality food avaible in normal supermarkets
- sick leaves paid
I arranged a unskilled manufacturing work for Taiwanese on one year working holiday visa. 8 to 16, no mobbing, they got equipment in factory. 14x salaries 1400 euro neto. So on average over 50 000 twd monthly. Room cost 300 eurosper month and they were 4 rooms in 130 m2. Cause they wanted to save cost, 3 or 4 peope lived in one room.
One couple decided to take 2 more guys in their apartment’s room to save cost.
They all said how working in Germany is relax and many look for options to come back.
In Taiwan they earned around 30 000 twd with long shifts.
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Pay a lot more and many Taiwanese still wouldn’t do a lot of these dirty, dangerous , night shift jobs. They might do for a while but would not last long.
There aren’t enough young people here and lots aren’t under much pressure to earn a lot of money.
.What would work much better for Taiwan is to allow these migrant workers to settle down and have families in Taiwan , to help repopulate the countryside and had hinterland towns and to keep the money and investment in Taiwan. It doesn’t make any sense to Chuck them all out after years and years.
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I don’t understand the lighting part. You might save maybe 100ntd per month turning off half the lights. Lights is such a low percentage of electrical usage compared to everything else, with all the new LED and stuff like that. Most likely laoban was born in the age of incandescent lights where they produce a ton of heat and use a ton of electricity. Those days are long gone. Seriously using like 2kwh more per month would boost productivity and safety so much. Maybe the laoban never thought about workers comp related cost…
I refuse to get a factory job in Taiwan because there is so much cost cutting that I fear for my safety working in such a place… If they wouldn’t even turn on some lights imagine how they’d feel about AC (and they are rare in factories but they still exist)
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Hi The, those things would be very attractive to an engineer.
However, you won’t be making the world’s most advanced semiconductors like that.
It’s a tradeoff, you know?
Also, if you want to sponsor a hard-working American to do data science for you, I’d be more than happy to relocate. You don’t have to give me my own room, just health insurance.
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AC is just allowed if he’s in the office. But if he’s out they turn it on anyways.
Well I know not everyone thinks like this (there’s an assumption that factory workers just tolerate heat), but if you cool the factory properly they can focus on getting work done rather than sweating, and possibly get into accidents or damage something. Besides AC dehumidifies the air so it would also improve reliability of machines because it would not rust as fast. You will be surprised what damage humidity can do to machines.
Yea is a trade off. Social movements and working unions have always been very strong in Germany. It’s great being typical worker, but burden on the most productive is unfair.
Even top engineers will hardly take home what American engineers can.
Politically we control EU and sell products all around world. We don’t do chips cause we will not work long hours.
There is that talk, Intel will build factory, invest with 20 billions of EU money. Goal is not to produce most advanced chips, than rather be able to secure supply chain in future disturbances.
In summary:
- Firms seek to maximize profit, not production.
- When they maximize profit, the productivity of the worker equals the wage, adjusted for prices. (Technically it’s the Marginal Product of Labor. I can’t find the original proof immediately, so I tried the equation with just the marginal impact of an extra hour worked by the worker, and it worked). Q’(L) in mathematical terms.
- Q(L) can take many forms, but in order to be realistic, it should have a local maximum, and in order to be pedagogically useful, one in which can be determined by setting the derivative of the profit equation equal to zero.
- A competitive firm doesn’t set the price, it takes the market price.
Can you tell me what your definition of profit is.
From what you have said I think you need to redefine your definition of profit.
Post #27.
Total Revenue minus Total Costs.
You wouldn’t? Why?
Look at all the time off on the bulleted list The provides.
Morris: Hurry, we gotta develop this chip to beat Samsung!
Engineer: Naw man, I’ll be gone for nine months.
That’s not time off, that’s 9 months paid unemployment.
I’m questioning your statement that in order to “make the worlds most advanced semiconductors” the only way is to not do all the things that The kindly put on a bulleted list.
I’m just a bit disappointed that on a discussion about “greedy laobans underpaying employees” the main takeaway is still the greedy “maximize profit”
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You’re right. But you can pick any of the other benefits off his list, like 14 months maternity leave.
In the US you only get three months.
Furthermore, the guy quits and you’ll be paying him for nine months when you could be hiring someone else to work.
I was trying to demonstrate that laoabans are not only greedy but stupid.
Because to make the most profit, they would pay their employees based on their productivity.
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