Predictably irrational

Predictably irrational

We always prefer to believe that our decisions are based on objective grounds and that they aim at systemic improvements.

But, the harsh reality shows that this is not the case!

In the United States there is currently a conflict between workers and the country's three major automakers, reflected in a huge strike.

There are two emblematic sides to this situation.

The strikers argue that they need better conditions (more pay and fewer hours per week worked).

Automakers point to the need to maintain competitiveness to face the Asian tigers.

The most likely tendency is for an agreement in which everyone loses.

Initially, workers will have better conditions. But then the automakers will need to lay off part of their workforce to avoid an increase in costs and loss of sales.

In Brazil we know this "logic" well. We have lost more than 50% of industrial GDP in the last twenty years. Due to lack of competitiveness. I myself have seen multinational clients ceasing local production and starting to serve imported products from their other units around the world.

And, accordingly the electric power sector (the whole supply chain), might loose - in the long run - an important load!