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Leveraging energy: why China succeeds where the US fails

CS Monitor -- If an employer wants to maximize profits, it will want to leverage its use of high-priced energy sources. From an employer’s point of view, there are basically three kinds of energy, from most to least expensive:1. Human energy
2. Petroleum energy
3. Everything else

If an employer wants to keep its costs low, it needs to minimize its use of expensive energy sources. The primary way it does this is by leveraging expensive energy sources with cheaper energy sources that help keep overall energy costs in line with what competitors (including overseas competitors) are paying. Thus, employers will want to use as little human and petroleum energy as possible, instead using cheap energy to substitute.

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Submitted Dec 09, 2012 By: skb69sa

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honda0105 Champion Author Tallahassee Posts:18,834 Points:1,638,195 Joined:Nov 2008	Message Posted: Dec 12, 2012 10:20:58 PM Ignore honda0105 Report Abuse not suprised that China is better, esp. at controlling human energy (aka labor).
goldrose1 Champion Author Cleveland Posts:11,076 Points:1,950,580 Joined:Feb 2005	Message Posted: Dec 10, 2012 6:06:15 PM Ignore goldrose1 Report Abuse Check
PDQBlues Champion Author San Diego Posts:7,214 Points:1,476,025 Joined:Jan 2009	Message Posted: Dec 9, 2012 8:19:30 PM Ignore PDQBlues Report Abuse Very good points, nsdp. The biggest problem with US corporations and their executives is that they look only at short-term gains. If they took a longer-term approach, much of the problems would be readily solved. Although I think any autocratic system such as China is doomed for failure, they have at least the foresight to take a long-term approach to their economic and capitalistic system.
mitt4prez Champion Author Tacoma Posts:1,888 Points:1,273,900 Joined:Nov 2007	Message Posted: Dec 9, 2012 1:53:25 PM Ignore mitt4prez Report Abuse "From an employer’s point of view, there are basically three kinds of energy, from most to least expensive:1. Human energy 2. Petroleum energy 3. Everything else " What sort of drugs is this author on? Peteroluem energy is more expensive than "Green" energy? Then why the hell are so many subsidies needed for "Green" energy?
nsdp Champion Author San Antonio Posts:1,117 Points:48,115 Joined:Jun 2012	Message Posted: Dec 9, 2012 9:37:20 AM Ignore nsdp Report Abuse Your people should look up the Chinese 11th 5 year plan. The Chinese are building lots of new coal plants. But the design they use requires 3 tons of coal to generate the same amount of electricity as a US plant that uses 4 tons. China has an energy foot print per person 1/3 that of the US. They also tear down 3% of the most inefficient coal plants every year. Plants they are tearing down now are more efficient than 50%of the US coal fleet. With China's rapid modernization they will soon be able to whip the US on energy costs in industry if we don't modernize. So a modern efficient energy supply system is going to beat what we have unless the US corporate leadership is willing to get out and modernize. That means new efficient plants and not retrofits of old inefficient plants. Labor plus transportation has pretty well evened out labor costs.
Canucktree Champion Author Alberta Posts:5,028 Points:1,047,890 Joined:Dec 2008	Message Posted: Dec 9, 2012 9:11:36 AM Ignore Canucktree Report Abuse I agree with dr047. Wait until they all realize the rest of the world does not live at their factory!
dr047 Champion Author Cleveland Posts:2,731 Points:543,420 Joined:Aug 2010	Message Posted: Dec 9, 2012 7:31:55 AM Ignore dr047 Report Abuse Slave Labor
merlinCO Champion Author Colorado Posts:1,780 Points:369,095 Joined:Mar 2012	Message Posted: Dec 9, 2012 7:25:09 AM Ignore merlinCO Report Abuse The Chinese don't have a Union that will put the deadbeat worthless non worker back to work after being caught on tape smoking and drinking. They fire em and dishonor the family.
Discovery02 Champion Author Colorado Springs Posts:2,825 Points:338,365 Joined:May 2012	Message Posted: Dec 9, 2012 7:09:07 AM Ignore Discovery02 Report Abuse It shows how things have deteriorated that humans are just considered by businesses as simply cogs in the machine to be used and abused and then discarded all at the lowest cost possible.
Wierbe Champion Author Cincinnati Posts:3,892 Points:1,146,815 Joined:Apr 2006	Message Posted: Dec 9, 2012 6:54:54 AM Ignore Wierbe Report Abuse What a rotten way to consider humans - a form of energy. I do not like the tone and tenor of this article, even if it is true. The human race is MUCH more than an energy source, as most socialist governments eventually discover.
Straitliner Champion Author Illinois Posts:1,650 Points:266,180 Joined:Sep 2012	Message Posted: Dec 9, 2012 6:45:23 AM Ignore Straitliner Report Abuse Pi$$ on China.
RockCity Champion Author Denver Posts:8,060 Points:1,455,785 Joined:Mar 2009	Message Posted: Dec 9, 2012 6:31:32 AM Ignore RockCity Report Abuse >Obummer loves China but he has NO business sense. Seems orummy loves china too. That's why he sends them our jobs. Good business sense I suppose, perhaps.
stratlinetime Champion Author Kalamazoo Posts:2,421 Points:591,535 Joined:Feb 2011	Message Posted: Dec 9, 2012 6:23:49 AM Ignore stratlinetime Report Abuse Cheap labor rates
RichardoB Champion Author Fayetteville Posts:8,147 Points:2,031,110 Joined:Jun 2007	Message Posted: Dec 9, 2012 6:23:17 AM Ignore RichardoB Report Abuse Cheap labor.
Sneakers55 Champion Author Houston Posts:51,862 Points:2,169,600 Joined:Nov 2005	Message Posted: Dec 9, 2012 6:22:31 AM Ignore Sneakers55 Report Abuse On Dec 9, 2012 6:58:23 AM, NotTom wrote: >China does not have the EPA and their rules on energy. China is a non-signatory to the Kyoto Protocol, so is the USA. >They will use what the EPA forbids us from using... Not for long...
tbgasmizer Champion Author Ontario Posts:6,053 Points:1,230,620 Joined:Oct 2009	Message Posted: Dec 9, 2012 6:20:26 AM Ignore tbgasmizer Report Abuse What?
Skipper52 Champion Author Massachusetts Posts:7,553 Points:1,620,410 Joined:Oct 2008	Message Posted: Dec 9, 2012 6:20:11 AM Ignore Skipper52 Report Abuse And so America will be destroyed not with a bang but whimper.
mnbeancounter Champion Author Minnesota Posts:4,975 Points:1,090,595 Joined:Oct 2009	Message Posted: Dec 9, 2012 6:20:08 AM Ignore mnbeancounter Report Abuse When will the next major depression begin?
dan30thz28 Champion Author New Jersey Posts:6,054 Points:2,009,715 Joined:Feb 2006	Message Posted: Dec 9, 2012 6:19:27 AM Ignore dan30thz28 Report Abuse And they pay their workers next to nothing.
sciguyrulz Rookie Author Houston Posts:33 Points:454,110 Joined:Mar 2011	Message Posted: Dec 9, 2012 6:19:06 AM Ignore sciguyrulz Report Abuse Rednix (an many others) have it right; china has lowered the cost of human energy allowing them to compete on a different level... And creating a model we have no interest in copying!
nstrdnvstr Champion Author Twin Cities Posts:37,030 Points:4,012,455 Joined:May 2001	Message Posted: Dec 9, 2012 6:18:02 AM Ignore nstrdnvstr Report Abuse Decades ago, the same things were being said about Japan... look where they are now.
The3rd Champion Author Jacksonville Posts:3,008 Points:838,300 Joined:Jul 2004	Message Posted: Dec 9, 2012 6:17:28 AM Ignore The3rd Report Abuse ok
1stClicker Champion Author Texas Posts:5,461 Points:2,271,470 Joined:Oct 2005	Message Posted: Dec 9, 2012 6:17:02 AM Ignore 1stClicker Report Abuse Obummer loves China but he has NO business sense.
METEOR49 Champion Author Ontario Posts:2,317 Points:483,150 Joined:Apr 2011	Message Posted: Dec 9, 2012 6:15:36 AM Ignore METEOR49 Report Abuse free trade will be our downfall, all the chinese junk that comes into north america with no tariffs destroys jobs here !
papou Champion Author Tampa Posts:11,017 Points:1,933,585 Joined:Jul 2005	Message Posted: Dec 9, 2012 6:15:26 AM Ignore papou Report Abuse The Chinese goal is to take over the world economically morally and politically
jiml1965 Champion Author Harrisburg Posts:3,082 Points:705,425 Joined:Jan 2011	Message Posted: Dec 9, 2012 6:14:53 AM Ignore jiml1965 Report Abuse cheap energy like coal
SpruceGuse2 Champion Author Michigan Posts:9,869 Points:2,481,410 Joined:Mar 2006	Message Posted: Dec 9, 2012 6:12:45 AM Ignore SpruceGuse2 Report Abuse We didn't fsil, we just quit trying to soon.....................
Cableman66 Champion Author North Carolina Posts:2,252 Points:518,560 Joined:May 2011	Message Posted: Dec 9, 2012 6:11:39 AM Ignore Cableman66 Report Abuse When the bill collector arrives they will speak Chinese.
wally52 Champion Author Little Rock Posts:27,777 Points:843,265 Joined:Jan 2011	Message Posted: Dec 9, 2012 6:10:54 AM Ignore wally52 Report Abuse Really
biza4u Champion Author New Haven Posts:8,664 Points:1,655,600 Joined:Jan 2007	Message Posted: Dec 9, 2012 6:09:30 AM Ignore biza4u Report Abuse Ok
mar2100 Veteran Author Cleveland Posts:348 Points:16,925 Joined:Sep 2012	Message Posted: Dec 9, 2012 6:09:25 AM Ignore mar2100 Report Abuse surprise
joko0 Champion Author New Jersey Posts:2,111 Points:593,315 Joined:Oct 2008	Message Posted: Dec 9, 2012 6:09:13 AM Ignore joko0 Report Abuse China has less expensive human resources.
FocusGuy Champion Author Seattle Posts:7,197 Points:1,440,455 Joined:Apr 2009	Message Posted: Dec 9, 2012 6:07:28 AM Ignore FocusGuy Report Abuse they will take over at some point
Hunter114 Champion Author Chicago Posts:9,459 Points:1,478,410 Joined:Apr 2009	Message Posted: Dec 9, 2012 6:05:58 AM Ignore Hunter114 Report Abuse Vamike is right: The ChiComs are no role model.
AcuraTSX Champion Author Ohio Posts:5,631 Points:2,208,855 Joined:Dec 2005	Message Posted: Dec 9, 2012 6:05:48 AM Ignore AcuraTSX Report Abuse Lesson missed.
cigarman409 Champion Author Massachusetts Posts:4,581 Points:1,855,310 Joined:Jul 2007	Message Posted: Dec 9, 2012 6:05:47 AM Ignore cigarman409 Report Abuse ok
Z06KY Champion Author Louisville Posts:5,291 Points:934,390 Joined:Nov 2010	Message Posted: Dec 9, 2012 6:04:39 AM Ignore Z06KY Report Abuse Use more clean coal in the US.
icer06 Champion Author Huntsville Posts:2,558 Points:483,045 Joined:Jan 2012	Message Posted: Dec 9, 2012 6:04:08 AM Ignore icer06 Report Abuse of course
Cachase1 Champion Author Oklahoma City Posts:11,594 Points:2,408,760 Joined:Aug 2003	Message Posted: Dec 9, 2012 6:03:28 AM Ignore Cachase1 Report Abuse It seems to be working.
fightbigoil71 Champion Author Milwaukee Posts:7,707 Points:1,573,580 Joined:Nov 2008	Message Posted: Dec 9, 2012 6:01:44 AM Ignore fightbigoil71 Report Abuse okay
look-gas Veteran Author Cleveland Posts:382 Points:2,546,125 Joined:Jan 2004	Message Posted: Dec 9, 2012 6:01:27 AM Ignore look-gas Report Abuse yes
Badmoon Champion Author Massachusetts Posts:8,453 Points:1,680,165 Joined:Oct 2008	Message Posted: Dec 9, 2012 6:00:26 AM Ignore Badmoon Report Abuse Interesting. Maybe there are too many people in the world to support with the methods and resources currently available.
bigsranch Champion Author Houston Posts:3,287 Points:1,033,180 Joined:Apr 2007	Message Posted: Dec 9, 2012 6:00:08 AM Ignore bigsranch Report Abuse China and the US are engaged in a currency war. If we crash ours first, then we pay back that Chinese debt with worthless dollars. Sorry, China!
Rich_pa Champion Author Cincinnati Posts:1,071 Points:239,735 Joined:Oct 2012	Message Posted: Dec 9, 2012 5:58:39 AM Ignore Rich_pa Report Abuse Then why do they use so much oil that makes are prices go up?
TXGasPriceSpy Champion Author Fort Worth Posts:7,957 Points:1,499,975 Joined:Sep 2008	Message Posted: Dec 9, 2012 5:58:25 AM Ignore TXGasPriceSpy Report Abuse vamike is correct.
NotTom Champion Author New Hampshire Posts:5,462 Points:1,410,215 Joined:Aug 2005	Message Posted: Dec 9, 2012 5:58:23 AM Ignore NotTom Report Abuse China does not have the EPA and their rules on energy. They will use what the EPA forbids us from using...
Pointtx Champion Author Austin Posts:3,366 Points:749,330 Joined:Mar 2011	Message Posted: Dec 9, 2012 5:57:58 AM Ignore Pointtx Report Abuse I would not view the first paragraph as factually accurate in all countries, certainly not China. For US business planning, yes. But if you know of any public US company that is using an expensive option where a cheaper option is available, you know of a company ripe for a shareholder lawsuit due to the wonderful SEC regs we have.
naw62 Champion Author Maine Posts:9,572 Points:2,244,615 Joined:Sep 2006	Message Posted: Dec 9, 2012 5:57:54 AM Ignore naw62 Report Abuse China doesn't pay there people anything and overcharge for gas
oldred11 Champion Author Indianapolis Posts:1,735 Points:758,950 Joined:Mar 2011	Message Posted: Dec 9, 2012 5:57:21 AM Ignore oldred11 Report Abuse "If we look at China’s energy leveraging, we see that it uses very little oil and much coal. . ." If that is the case why is China buying so much oil and why did the price of oil spike when China became a capitalistic, oil burning society?
1Boog Champion Author Lincoln Posts:6,116 Points:1,228,850 Joined:May 2004	Message Posted: Dec 9, 2012 5:56:54 AM Ignore 1Boog Report Abuse China has the capital to spend when the US just borrows it!!