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"Globalization, Self-Reliance, and the SKU System"

Jan 8, 2024 - 10:35amSummary: The text explores the concept of tracking each item coming into a U.S. city by assigning unique SKU numbers to understand the state of transformation of these materials, from raw to finished products. It questions the possibility of quantifying and visualizing globalization, inquiring about the flow of resources within the U.S. and their conversion into final products before crossing state lines or leaving the country. The author ponders the potential for cities to become more self-reliant, contrasting the current global interdependence for resources and wondering about the economic and geopolitical implications of self-sufficiency. Finally, the text considers whether such self-reliance could challenge the principle of opportunity cost, which is a foundational idea in economics that supports globalization, and if moving away from this systemic view could contribute to or resolve existing sustainability concerns.

Transcript: A curiosity I have is if we take a look at a city in the U.S. and all of its importance by rail, air, truck, and I suppose other as well, and give each item type a unique, more or less unique SKU number, what is this material, what state of transformation to utilization is it? Is it like a raw or is it processed or is it the finished product? How much can you squeeze the importance for a city, I guess this depends a lot by size, a city like Dallas versus a city like Boulder, very different in terms of how much raw stuff it could take to then turn into whatever the final product is. But I think what I'm really trying to get at is how, is it possible to quantify and visualize globalization to some extent, to see where things come from, you know, from even within the United States, the context of all of our states and territories, there's raw resources mined, oil extracted, etc., etc., etc., how much of it turns into the final product before it leaves states versus how much stays within the country and just turns into the final product versus just leaves as raw material and never comes back. I think that's kind of what I'm trying to get to here. Another sort of curiosity question, and I think this is the underlying thing that I'm interested in here, is just how can cities become more self-reliant, and I'm imagining that the current way of doing things is very far removed from cities being self-reliant. I guess a city in the middle of Utah has access to very different resources than upstate New York, and that's very different from an Alaskan highland. So is there a shape, because right now it kind of seems like the world is the, we have a population or sort of a unit of one, one earth is what it takes, one globe is what it takes to supply all the shit that we need right now, because we have even just a supply chain for processors is so vast, so interconnected geopolitically, that if you tear off any chunk of that, the thing fails. Is that the only way that things can be done, though? Is it possible to have more regions that are completely able to self-supply everything that they need, and is there an economic benefit to that? Does it make the economy more resilient? Does it make trade relations, or rather, peace relations harder, because you're no longer needing to play nice with all of these other countries, because you need all of their good things, but now you can supply a fair number of these things. I guess what I'm really trying to get at is, the current economic system doesn't seem to be sustainable for very long, because so much of the value is being extracted and trapped. What happens if more countries have a way to in-house produce everything? And does this sort of, is this sort of negated by one of the core economics principles of opportunity cost? We can do a thing better, so we can give you that thing in exchange for a thing that you can do better. Does that principle go against, I mean, that feels like the bedrock of globalization, but is globalization linked to the shit mess that we're in, or at least is it in the free view? So yeah, there you have it.

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