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	<title>Comments on: After a few years, SpaceX was making in-house 70 percent of the components of its rockets.</title>
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	<link>https://www.isegoria.net/2024/02/after-a-few-years-spacex-was-making-in-house-70-percent-of-the-components-of-its-rockets/</link>
	<description>From the ancient Greek for equality in freedom of speech; an eclectic mix of thoughts, large and small</description>
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		<title>By: Gaikokumaniakku</title>
		<link>https://www.isegoria.net/2024/02/after-a-few-years-spacex-was-making-in-house-70-percent-of-the-components-of-its-rockets/comment-page-1/#comment-3651989</link>
		<dc:creator>Gaikokumaniakku</dc:creator>
		<pubDate>Sun, 11 Feb 2024 23:29:53 +0000</pubDate>
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		<description><![CDATA[Two points:

1. I think it was Coase who said in 1937 that firms exist because their internal costs are lower than the costs of outsourcing.  Musk seems to be good at running companies precisely because he can organize effective, low-cost operations in-house.

https://onlinelibrary.wiley.com/doi/full/10.1111/j.1468-0335.1937.tb00002.x

2. In the long term, human communities cannot survive on profits alone. Humans need clean air, clean water, etc. Thus &quot;landfill capitalism&quot; is doomed to kill off a lot of people, and it may kill itself if it prioritizes funneling profits to the 1% and sticking the 99% with the externalities.  Managers who can minimize in-house costs have a choice to make: they can serve the 1% and possibly be well-paid in the short run, or they can serve the 99% and build a survivable planet.  Unfortunately, managers who can minimize in-house costs seem to be few and far between. It is hard to train promising candidates into good managers without having the good managers snatched up by the 1%.]]></description>
		<content:encoded><![CDATA[<p>Two points:</p>
<p>1. I think it was Coase who said in 1937 that firms exist because their internal costs are lower than the costs of outsourcing.  Musk seems to be good at running companies precisely because he can organize effective, low-cost operations in-house.</p>
<p><a href="https://onlinelibrary.wiley.com/doi/full/10.1111/j.1468-0335.1937.tb00002.x" >https://onlinelibrary.wiley.com/doi/full/10.1111/j.1468-0335.1937.tb00002.x</a></p>
<p>2. In the long term, human communities cannot survive on profits alone. Humans need clean air, clean water, etc. Thus &#8220;landfill capitalism&#8221; is doomed to kill off a lot of people, and it may kill itself if it prioritizes funneling profits to the 1% and sticking the 99% with the externalities.  Managers who can minimize in-house costs have a choice to make: they can serve the 1% and possibly be well-paid in the short run, or they can serve the 99% and build a survivable planet.  Unfortunately, managers who can minimize in-house costs seem to be few and far between. It is hard to train promising candidates into good managers without having the good managers snatched up by the 1%.</p>
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