I find this discussion funny in a way. I go through this every day, people arguing what I charge for an air conditioning repair. Nowadays anyone can go on line and find prices of the parts needed for a repair. An expansion valve costs about $50.....if you need one the repair will cost you around $450 or so. Seems like highway robbery doesn't it??? It's not. Existing freon must be recovered. Takes about an hour plus the tools needed are over $1000. Duct work, on some installs, must be cut to access the valve then must be patched. Unit has to be evacuated, vacuum pump. Takes bout an hour and tools required cost close to $800.........and on and on.
Stating that the materials required to make a knife cost $50 so how can anyone charge $300 for the finished product is ridiculous.
Just my opinion.
Joe
One of the problems here is that the role of human labor in manufacturing has been changing for 100 years or more and that change is accelerating. From the cotton gin and pile driver to the 3D metal printer, some of the primary effects of automation
in manufacturing are to:
a) remove human labor
b) drive down costs (due to human labor)
c) improve manufacturing tolerances
d) improve manufacturing speed
Combined, manufacturing automation can take a product that was once very expensive and bespoke by skill craftsman and only available to the wealthy and can turn it into a more consistent mass produced product that is affordable to the masses.
This poses a real strain on an economy that requires the participation of citizens as consumers. What will consumers spend their money on if their needs are met by low cost/high value manufactured good? The answer is fashion, which drives purchasing even if there is no real need other than not being out of fashion. This is why "new and improved" is such a critical mythology to sustain.
A big looser, as your post shows us, are the various service industries. Why is labor expensive when parts are cheap? More to the point, why should I pay somebody to fix my thingiemabob when I can buy a new one cheaply?
Another sticky wicket not yet solved is how do you keep a work force employed when their skilled labor has been replaced with automated machinery? How much automation is too much? Does the term Luddite mean anything to anybody?
Today, my name is John Henry