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I don't agree with his ideas of what BNSF is doing either, you know. I think BNSF is smart enough to make good investments, however. It would make you wonder why; if what Dave said is true, they are expanding into a lower profit business, than otherwise. I don't know, but you have yet to dispute his facts about the income of US freight vs. intermodal. Let's get back on track, and be civil; or Bergie is just going to have to clean up this place Monday Morning. A couple of question I have been wondering. When Dave said this on page 2. [quote]QUOTE: As usual, most of you who defend BNSF's actions have missed the point. What BNSF is doing is taking money made from captive US shippers (where revenues can be as high as 200+% of variable costs), and using those monopoly profits to invest in the import intermodal business (where revenues are usually as low as 106% of variable costs). The STB defines revenue adaquacy as revenues that are 180% of variable costs. [/quote] Are these numbers accurate, and if so why is BNSF not expanding into a higher paying exploits? I am not agreeing with the above, quote far from it. These may be the key factors to this debate (war?). Instead however both sides began getting wrapped up in the last post almost forgetting what we were talking about. I had the opportunity to talk to my economics teacher yesterday after school. He said that wages were a big part of the reason for outsourcing, though government regulations, and taxes are big too; he went on however to explain that some jobs are not profitable to outsource. Such as High-tech, jobs that need to be done in a timely fashion, and others. I have mentioned this before on these forums I worked for a print shop that was investigating doing a large job, so the manager looked into the cost of gasp outsourcing, and we discovered that once you ordered enough it was cheaper to have a company in Texas print them that the Chinese companies. Don’t forget that it does take people to unload the ships, and ship the goods, that’s where BNSF comes in. My teacher also mention something else you might find surprising, if you account for all the copyright/trademark infringement (i.e. Theft of intellectual property), there is would be no trade deficit. We should look to history for an example; there was a time when everyone was afraid that cheap British goods would pu***he American goods of the market (outsourcing). I notice that didn’t happened so I would not be too concerned it now. P.S. The cartoon charter thing was merely a joke, to try and lighten up the thread.
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