| Topic Name: |
Krakow, Poland |
| Message Name: |
I Completely Agree |
| Date Posted: |
03/07/2006 |
| In Reply To: |
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.
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| Message: |
I guess I agreed with the other other poster insofar as comparative advantage helps all parties involved (generally speaking, of course). Sending jobs to India is not comparative advantage, even though it's mistakenly called that. Labor arbitrage comes from absolute advantage, which is what Hewitt and other major corporations participate in. I agree with you regarding the speed of transition. And, I also agree that tax law has been abused to encourage US employers to move jobs overseas. So has immigration law. It is a free-for-all right now, and the commom good is taking a back seat to quarterly earnings targets.
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