| Topic Name: |
Krakow, Poland |
| Message Name: |
I disagree more.... |
| Date Posted: |
03/07/2006 |
| In Reply To: |
But your example is flawed. What you're talking about is comparative advantage, and that results in an overall increase in the standard of living for everyone involved. Sending jobs to India is an example of absolute advantage, and all absolute advantage does is make the rich richer and the poor poorer on a global scale (not rich countries vs poor countries, but rather rich individuals vs poor individuals - regardless of nationality). Eventually, India won't be the most cost-effective country in the world for sending back office jobs. They will lose that advantage to some other third-world country that can do roughly the same amount of work at roughly the same level of quality, but at a significant fraction of the cost. Then India, like the US and Europe, will be left out in the cold to fend for themselves.
I agree with comparative advantage; it's what made the US (and Japan) economic powerhouses. I disagree with absolute advantage; it consolidates wealth to a few selected individuals at the expense of many individuals - it's the "invisible hand" giving everyone the middle finger. |
| Message: |
In the US economy there are all kinds of brakes on 'unfettered capitalism'.
There are things like unemployment benefits, welfare, medicare, Social Security, legalization of unions.
Aside from those things, the tax law is supposed to encourage things that are good for the Nation as a whole. The tax law has failed us in that it actually encourages US employers to move jobs overseas in a number of different ways.
Aside from that, there is the whole issue of the speed of the transition. This is the real issue. I hope everyone agrees that if GM, Ford & Chrysler moved every single manufacturing job to Mexico overnight the impact on the US economy would be devastating. Tax revenues would decrease and large numbers of secondary middle class jobs and business would vanish over night. It would be a serious blow to the US economy.
Same thing for white collar jobs. There should be some brakes on how fast the US economy allows high paying service jobs which serve the US consumer to be moved overseas. It is all about the speed at which markets are opened. Right now, it's a free-for-all and corrupt politicians serve lobbyists rather than the common good. Other countries open thjeir markets slowly to allow their economies to adjust with less pain. The US should do the same thing.
|
|
