Sunday, November 1, 2020

Consider Walmart

 They were once about 5% of the economy.  What economic principle governs Walmart?

Stability at the check out counter. The company is working when they have one or two customers lined up for purchases, no more no less.  Any macro economist can go to Walmart and understand the economy by watching how Walmart manages their value chain. They will see the same effect on all value chains, at all levels. They will determine that macroeconomics is congestion management at the constriction points in value chains. It is the arkov condition. It means that the Walmart managers do not call half your body in for the day's and letting the other half take the day off.

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