BIG PRODUCTION USELES WHEN SALES TUMBLE
Big Production Useless When Sales Tumble Financial Journal Says Mass Production Is Handicap During Period of Depression NEW YORK—The mass production system, in times of depression, is ar added...
...I will never lose sight of the wonderful work done by the late Senior Robert M. LaFollette, sr...
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...This...
...Now when machines represent a large proportion of the cost, we have idle machine time which Is charged into the cost of those unite produced, increasing the cost per unit during the period when volume drops...
...said Mr...
...I pass my paper on...
...can be laid off in times of depressions, but overhead charges and interest on costly machinery continues...
...Under the old system the laborer could be given a vacation, but under mass production the idle machine eats up interest and other overhead charges...
...The important point is the fact that in a period of decreasing volume, mass production has a more serious effect, because when labor costs represented a large share of the cost ol production laborers could be laid off and the cost of production could be decreased proportionately with the decrease of volume...
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...The labor cost," he says, "has com...
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...Big Production Useless When Sales Tumble Financial Journal Says Mass Production Is Handicap During Period of Depression NEW YORK—The mass production system, in times of depression, is ar added cost to manufacturers because of idle machinery, says Arno H. Johnson, writing in the Annalist, financial journal published in this city...
...ENJOTR EVERY ISSUE 'Pullerton, Calif., Aug...
...Johnson, "makes a drop in volume a serious thing to a manufacturer," who is confronted with the "great problems of maintaining high volume of production r.nd the actual and real shrinkage in the ability of the consumer to buy at the same rate that he has purchased in the past...
...Johnson point* out that worker...
...to represent a smaller share of the cos( of production, while fixed charges, such as interest on investment, machinery and plant facilities, have become a relatively larger item...
Vol. 1 • August 1930 • No. 38
