Comments on: Market crisis and industrial policy https://blog.p2pfoundation.net/market-crisis-and-industrial-policy/2009/01/04 Researching, documenting and promoting peer to peer practices Sun, 04 Jan 2009 18:52:14 +0000 hourly 1 https://wordpress.org/?v=5.5.14 By: Kevin Carson https://blog.p2pfoundation.net/market-crisis-and-industrial-policy/2009/01/04/comment-page-1#comment-359070 Sun, 04 Jan 2009 18:52:14 +0000 http://blog.p2pfoundation.net/?p=2276#comment-359070 Thanks a lot, Michel. As always, after I published the paper I thought of material I wished I’d included in it. Particularly the recent CPSIA legislation, which will effectively destroy small apparel manufacturers by mandating a $4000 safety test for each separate product line marketed. As Eric Husman described it at GrimReader, the small apparel business model involves designing a whole lot of different product lines, seeing which ones sell, and switching production to those lines on a demand-pull basis. The testing requirements essentially criminalize this model, so that the only companies that can absorb the cost are those that intend to switch to large-batch mass production in the lines that sell.

In almost every case, the state intervenes to impose minimum overhead costs and prevent small-scale production using spare cycles of capital equipment people own anyway. Since high overhead is mandated, you can only enter the field on an all-or-nothing basis.

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