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Comment by bsder | Hacker News Reader

Welcome to the end result of Just In Time inventory.

Nobody wants to hold inventory because that represents "wasted money". So, when you need inventory, everybody is screwed.

This is just like the banking crisis of 2008. There is no point in being the Cassandra. If you're right, everybody is screwed. If your wrong, you personally lose.

Better to just bank your money and try to bail out as soon as possible.

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I guess this health crisis will also be the end of just in time logistics, as almost nothing is produced in China right at this moment. If anything, the recent trade sanctions debacle in the US might have given some US companies a head-start in helping them not being so dependent on Chinese manufacturing, but I don’t think the advantage is too large.

Texas also charges ~2.5% annually on value of inventory.

Static value should never be taxed, which includes real property. The value should only become apparent at the time of sale.

not sure about the inventory taxes here, but property tax in general basically serves as the 'income tax' of texas from a state revenue perspective. which is, 'interesting' for a variety of reasons.

On property I totally don't agree. Prop 13 in California is the poster child for the damage that kind of thinking causes.

On parts inventory, I'm probably quite a bit more in agreement. Holding inventory is risky, but spectacularly useful when there are disruptions.

Should income-earners pay for the fire department, or should those whose property might burn?

I wonder if a simple better contract situation exists : the owner of the company could demand that orders are made till X time for the amount of Y. Since demand is strong, they’ll have to accept.

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