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by shagie·9y ago·view on hn ↗
4.5) Central planning for various industries to reduce logistics costs.

https://www.youtube.com/watch?v=myf_bJv20NE touches on it (26 minutes in). That you can order a chip you need... and its made a few blocks away.

Detroit (and the midwest auto industry) used to be like this - where whatever you needed was fairly close already. Not so much anymore. I'd have to dig up the cost difference in a slack (I asked about it), but IIRC, the majority of the price difference was not the difference in the cost of labor on a $30 item, but that at the scale things are being made the logistics isn't as expensive (you can buy 1000 chips and get them in a day or so rather than needing to buy 10,000 chips and needing for them to be shipped from 1000 miles away that will get here next week).