Importance Of Money in any Economics


Money is 1/2 of every transaction. Yet we never discuss how money is supposed to function. The topic of the management of money is taboo. The world has put its trust in the Federal Reserve to manage all monetary activities, and it is believed that only an elite special few people have the ability to understand how to manage the world’s money properly. Since the US dollar is considered the world currency, the value of that money affects everyone around the globe. What actually is money? Where does it come from? It is taken for granted that US monetary policy is based on sound economic principles. No one questions the actions of the Federal Reserve.

In order for a Lean economic system to function properly monetary policy is very important to insure wealth is being created and properly used to facilitate trade. Money is 1/2 of every transaction and we are all taught at a very young age that money does not grow on trees. Which is in actuality a warning of the dangers of inflation. Unfortunately the Lean community has completely ignored the important function money management that can either enhance of inhibit economic growth. In reality the concept of money is rarely discussed and even less understood.
Read the rest of this entry »

Prefab And Porta Cabins In Todays Market


Prefabrication and modularization is not a new construction process, it has been in used since first world war. But in recent years it has gained popularity owing to improved quality and considerable reduction of construct ion time. Prefabrication originally was never a single design process, but it is series of multiple methods of framing and cladding the standard set of components from an already developed prototype. This prototype is often built with light steel product and incorporated to form a prefab bathroom and kitchen unit.

In prefabrication the building or houses are not built directly on the site location, rather they are first manufactured in a factory as series of large units or components. This units are then assembled at the actual site location to form the complete building. In prefabrication, the form of the residential or commercial building represent a type of modern working class housing. The rise of prefabrication was mostly in batches. In the year 1945 till 1949, the prefabs were mostly used on vacant land, parks, derelict sites in the urban areas in an attempt to provide accommodation to thousands of families affected by world war.

In the current market, popularity of prefabrication is mainly because the price of land has gone very high. Most builders and developers are finding ways to construct home at low cost and at less time. This has also led to increase in demands of portable cabin. The portable cabin also known as porta cabin provides temporary location and can be easily transferred to different location whenever required. The portable cabins are very versatile and are used for variety of purposes. They are mainly used in construction industries to provide site office cabin for the staffs, but they are also used as portable toilet, security cabin, bunk houses, changing room, shops and office cabin. Most manufacturers of portable cabin provide many amenities and features like air conditioning system, plenty of electrical connection, furniture and chairs for office etc in their cabins. Porta cabins are also strong and durable as they are build with steel frame. Materials used for the interiors are of light weight so that the cabins remain light weight for easy transportation.
Read the rest of this entry »

What is Free Market and Its Principle


What exactly is a free market? Most people have been led to believe that the United States operates under a free market system. However this is not the truth. The truth is that today there is government intervention in every economy. There is no example of a true free market economy in today’s world. Every economy is somewhere in between. However what is important is in which direction is the government moving. Less control over economic activities or more control. The more the government has control over economic activities the less lean it becomes. The less wealth it creates.

The United States has slowly moved away from free market economy over the last century. The problems did not occur overnight, and cannot be blamed on one president or political party, but more a slow transition over time with more regulations and government control over economic and personal activities. The US government has turned its back on the idea that the individual consumer decides what is best and today only listens and protects powerful special interest groups. Due to this the wealth has been drained from the country and today The United States is bankrupt. In order to reverse this trend The United States must once again believe in the power of the individual to have more freedom in economic activities. The government must get out of the way and let the market work. The government must unleash the creative mind of the individual to invent new technologies that will lead us into the future and create true wealth for all people who are willing to work and be productive members of society. The government must become lean. We must understand what an actual free market economy is.

Jim Womack touched on this issue in his book “Reflections on Lean: How has lean changed your life?” Jim states, “In 1979, as a PhD student in political science and public policy at MIT, I was studying how governments and companies work together to create winners in world competition. My course work was not concerned with the secret of value creation – how people, methods, and technologies can be combined to do more with less. Rather it focused on how companies lobbied governments to change the rules of the game – trade barriers, currency values, R&D subsidies, etc.
Read the rest of this entry »

Ethiopia Embassy is proudly powered by WordPress.