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Molson_Hart's profile
Molson Hart
Molson Hart
Molson Hart
@Molson_Hart

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Molson Hart

@Molson_Hart

CEO at http://amazon.com/viahart . CEO at http://edisonlf.com . I tweet about business, e-commerce, supply chain, health, law, & infrastructure

Austin, TX
Joined July 2015

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    1. Gergely Svigruha‏ @gsvigruha 18 Apr 2018
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      I've seen this gif a lot showing that global inequality is falling. But no one seems to notice or mention that the main driver - emerging Chinese middle class - happens in the most protectionist country. https://ourworldindata.org/global-economic-inequality …pic.twitter.com/bEfsPUCT8D

      1 reply 2 retweets 3 likes
    2. Molson Hart‏ @Molson_Hart 18 Apr 2018
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      Replying to @gsvigruha

      You think the protectionism was necessary? 1. Highly educated, smart, entrepreneurial people 2. Great infrastructure 3. Economically competent government 4. Demographic dividend 5. Proximity to manufacturing powerhouses like sk and japan

      1 reply 0 retweets 0 likes
    3. Gergely Svigruha‏ @gsvigruha 19 Apr 2018
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      Replying to @Molson_Hart

      I would not conclude that from one graph. But i think it's worth investigating. Much of what you describe applies to countries where the middle class eroded (west) or didnt quite emerge to the same extent (india).

      2 replies 0 retweets 0 likes
    4. Molson Hart‏ @Molson_Hart 19 Apr 2018
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      Replying to @gsvigruha

      Had the west been more protectionist, it's possible that this would not have happened to the extent that it did. Wouldn't you say that a middle class was created in India without protectionism and by avoiding it's bad infrastructure? I'm thinking about the one created by BPO.

      1 reply 0 retweets 0 likes
    5. Molson Hart‏ @Molson_Hart 19 Apr 2018
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      Replying to @Molson_Hart @gsvigruha

      I think the key reason that I did not mention which is important regarding the formation of a new middle class, is labor price differential. Containers and sea shipping does not compensate for all the other advantages of making in China.

      1 reply 0 retweets 1 like
    6. Molson Hart‏ @Molson_Hart 19 Apr 2018
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      Replying to @Molson_Hart @gsvigruha

      What I'm trying to say is that if you have those positive characteristics (good infr., demographic dividend, sensible policy, smart people), relative to a developed country, plus a cost differential, you can probably create a middle class without protectionism.

      2 replies 0 retweets 0 likes
    7. Molson Hart‏ @Molson_Hart 19 Apr 2018
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      Replying to @Molson_Hart @gsvigruha

      Afaik protectionism was only relevant in the development of certain industries in China, i.e. high technology. A middle class would've been created on the back of apparel, shoes, injection molding, electronics assembly alone.

      1 reply 0 retweets 0 likes
    8. Gergely Svigruha‏ @gsvigruha 19 Apr 2018
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      Replying to @Molson_Hart

      Well yes if you have a huge labor price difference then you dont need to add anything on top of that. By definition protectionism only applies in cases where you are not competitive. I mean youre probably right to an extent but question is to what extent.

      1 reply 0 retweets 0 likes
      Molson Hart‏ @Molson_Hart 19 Apr 2018
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      Replying to @gsvigruha

      Is that true? Africa is not exporting much besides raw materials and their labor is cheap. I think you really do need infrastructure and a few other things in order to compensate for the disadvantage of sea shipping...in order to compete. All I'm saying is that it's possible that

      7:19 AM - 19 Apr 2018
      2 replies 0 retweets 0 likes
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        2. Molson Hart‏ @Molson_Hart 19 Apr 2018
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          Replying to @Molson_Hart @gsvigruha

          protectionism was a bug, not a feature of the creation of their middle class. It probably would've happened anyway. It's unclear as to whether it was needed to compete in high tech. What areas are they doing that successfully? ZTE/phone tech? Protectionism not needed for that.

          1 reply 0 retweets 0 likes
        3. Gergely Svigruha‏ @gsvigruha 19 Apr 2018
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          Replying to @Molson_Hart

          I don't think we can objectively settle this :) also they might not need it now but 10 20 30 years ago? How do you know they would not all use Nokia had they opened up completely before they had high tech?

          1 reply 0 retweets 0 likes
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        2. Gergely Svigruha‏ @gsvigruha 19 Apr 2018
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          Replying to @Molson_Hart

          Ok you're right i take it back you do need additional things like infra. But the other half is true, if you're competitive anyway then of course no need for protectionism.

          1 reply 0 retweets 0 likes
        3. Molson Hart‏ @Molson_Hart 19 Apr 2018
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          Replying to @gsvigruha

          Agreed. That's why protectionism tends to be selective. The local industry complains about X. We don't have a tariff on this stuff because it's cheaper to make domestically.pic.twitter.com/YvEPljhlrY

          0 replies 0 retweets 0 likes
        4. End of conversation

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