Marissa Mayer makes 1,100 Yahooers jobless, calls it a "remix"

Why would a CEO be so tone-deaf as to call a mass-firing a “remix?” Because the only audience that matters today are shareholders, not the public. Read the rest

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Marissa Mayer makes 1,100 Yahooers jobless, calls it a "remix"

A Single Chinese Town Makes Most of the World’s Christmas Decorations

At this point in time, you’ve already hung your tinsel and decorated your tree with blinking lights. Maybe there’s even a glowing Santa statue on your lawn. But did you ever step back and think about where all of these holiday decorations come from? A factory in China is the easy answer. An entire town of factories specializing in Christmas cheer is the correct answer . Read more…

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A Single Chinese Town Makes Most of the World’s Christmas Decorations

Having leisure time is now a marker for poverty, not riches

In Post-Industrious Society: Why Work Time will not Disappear for our Grandchildren , researchers from Oxford’s Centre for Time Use Research argue that there has been a radical shift in the relationship between leisure, work and income. Where once leisure time was a mark of affluence, now it is a marker for poverty. The richer you are, the more likely you are to work long hours; while the poorer you are, the fewer hours you are likely to work every week. The researchers theorise multiple causes for this. Poor people are more likely to be underemployed and unable to get the work-hours they want (and need) to support themselves. Rich people are likely to work in jobs that disproportionately advance and reward workers who put in overtime, so a 10% increase in hours worked generates more than 10% in expected career-gains. They also claim that rich workers are more likely to be satisfied with their jobs, but I’m skeptical of this — I think that relative to unskilled workers doing at-will 0-hours temp work whose every move is constrained and scripted by their employers, this is probably true, but I don’t think that the white-collar world is producing a lot of people who think that their work is meaningful and rewarding. In today’s advanced economies things are different. Overall working hours have fallen over the past century. But the rich have begun to work longer hours than the poor. In 1965 men with a college degree, who tend to be richer, had a bit more leisure time than men who had only completed high school. But by 2005 the college-educated had eight hours less of it a week than the high-school grads. Figures from the American Time Use Survey, released last year, show that Americans with a bachelor’s degree or above work two hours more each day than those without a high-school diploma. Other research shows that the share of college-educated American men regularly working more than 50 hours a week rose from 24% in 1979 to 28% in 2006, but fell for high-school dropouts. The rich, it seems, are no longer the class of leisure. There are a number of explanations. One has to do with what economists call the “substitution effect”. Higher wages make leisure more expensive: if people take time off they give up more money. Since the 1980s the salaries of those at the top have risen strongly, while those below the median have stagnated or fallen. Thus rising inequality encourages the rich to work more and the poor to work less. Nice work if you can get out [The Economist] ( via /. ) ( Image: Lonely Hammock , Micky Zlimen, CC-BY-SA )

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Having leisure time is now a marker for poverty, not riches

Why (some) manufacturing is returning to the USA

General Electric has moved some of its key appliance-manufacturing work back to the USA, re-opening “Appliance Park,” a megafactory in Louisville, KY. The company is finding it cheaper to do some manufacturing in the US relative to China, thanks to spiking oil costs, plummeting natural gas prices in the US, rising Chinese wages, falling US wages, and, most of all, the efficiencies that arise from locating workers next to managers and designers. The GeoSpring suffered from an advanced-technology version of “IKEA Syndrome.” It was so hard to assemble that no one in the big room wanted to make it. Instead they redesigned it. The team eliminated 1 out of every 5 parts. It cut the cost of the materials by 25 percent. It eliminated the tangle of tubing that couldn’t be easily welded. By considering the workers who would have to put the water heater together—in fact, by having those workers right at the table, looking at the design as it was drawn—the team cut the work hours necessary to assemble the water heater from 10 hours in China to two hours in Louisville. In the end, says Nolan, not one part was the same. So a funny thing happened to the GeoSpring on the way from the cheap Chinese factory to the expensive Kentucky factory: The material cost went down. The labor required to make it went down. The quality went up. Even the energy efficiency went up. GE wasn’t just able to hold the retail sticker to the “China price.” It beat that price by nearly 20 percent. The China-made GeoSpring retailed for $1,599. The Louisville-made GeoSpring retails for $1,299. The Insourcing Boom [The Atlantic/Charles Fishman]

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Why (some) manufacturing is returning to the USA