From the article: You could say, as many do, that shipping jobs overseas is no big deal because the high-value work -- and much of the profits -- remain in the U.S. That may well be so. But what kind of a society are we going to have if it consists of highly paid people doing high-value-added work -- and masses of unemployed? The America power money elite has greater sympathy with their counterparts in other countries than the everyday folks here trying to make a living in this country..... Sad to say, this is not longer one nation ....
LOL I wonder if Mr Hippie has read any history. His comments could have been written any time in the past 200 years in the US. There's always been a know-nothing / eat-the-rich sentiment floating around here or there. "... There are two ideas of government. There are those who believe that if you just legislate to make the well-to-do prosperous, that their prosperity will leak through on those below. The Democratic idea has been that if you legislate to make the masses prosperous their prosperity will find its way up and through every class that rests upon it... " -- William Jennings Bryan, 1896
What if theres no way in hell ALL people can be first-world? That's the horrible truth (hypothesis) nobody wants to see. What if you have all people second-world and better is not possible? And First-world is only enabled by third-world? (dumps in africa, sweatshops in china)
You create an American job by starting your own company and then outsource as much as you can, hiring as few people here as possible because it's not worth the cost or risk. But, you create one American job, and possibly an assistant if you do well enough (two). Sad, but true.
"You create an American job by starting your own company and then outsource as much as you can" So true Brandonf I designed several products for customers and the first thing they wanted was to build them in Asia. The cost to build in Asia was from 40% to 60% the cost to build in the US. Guess where they were built. Any economic theories on how to change this. Yes that's correct 40% to 60% less! GS
if you are boss, what's your decision? if build in Asia costs 40% to 60% less which means more profit and can price the product competitively in the global market.. if build in US costs 40% to 60% more which means less profit and can't price the product competitively in the market. (Greater risk of losing the product market shares to the competitor) Now boss has to decide .. choose US-people call him Patriotic but risk of losing competiveness in the global market because of higher costs. choose Asia-some people call him traitor but his business profit is bigger and company won't easily go bankrupt. catch 22 huh? if 2 people (an america and an asian) come to interview for a job in your company.. assuming both have the "same intelligent" and "same productivity" both are good and produce the same results.. Now the america won't work for you unless you pay him 100k a year but the asian is more than happy if you pay him 40k a year. You know both of them are equally good and you really like both of them, you will hire who? Hire the america because it's the patrotic thing to do and cost you 60k more or hire the asian and save you 60k in your pocket? Okie, maybe you don't mind paying 100k from your pocket.. Now would you pay that one american 100k or rather hire the asian .. save the 60k and give/donate the 60k to some orphanages when many american arphans can benefit from your generousity. Most business people are global people .. they are not politicians. Yes! The boss will hire the american if he is extra-ordinary good and much more productive than the asian. Boss is willing to pay 200k or 300k more coz he well deserved it. But if both are equally good, why should a boss pay 60k more a year and 600k in 10 years(assuming no increment in salary) if you are boss? who will you hire if you're not racist but a rational person and a global person. Hard decision really!!! How do make an American Job.. ask obama and Ben & the co. They are the experts .. most of us are just ordinary global people lol.
NNN Long reply to what is the reality of the day, most of the business people I deal with just go for the extra 40% to 60% profit without putting more thought into it. Yes most do! GS
the economic logic of "offshoring" is as compelling as any that exists. The issue is that it has largely shut down domestic industry and the productive work that used to earn most americans their daily bread. We are moving towards a society where really two classes of people succeed: Those who are pure entrepreneurs (like many here) and those who make their bread via government or a government created work cartels (licensed professions/trades). Everyone else is increasingly shut out, as The regular, "productive" middle class and working class jobs are now on the other side of the world. Financial bubbles have to a large degree hidden this fact, as these "bubbles" (such as real estate) kept many people feeling flush as they unknowingly incinerated their personal wealth. My concern is that the arbitrage profit being gained is over-optimized to the current political and economic conditions. Lenin supposedly said that, "The Capitalists will sell us the rope with which we will hang them". Now I am not sure how this will play out, but the quote from Lenin to me is puts forward the notion that grave, unintended consequences can result from the pursuit of short term profit maximization that lacks strategic vision. It is very possible that the arbitrage profit from offshoring will (like most profit opportunities) be driven down to nothing. It could be via a price shock (perhaps soaring oil prices or a collapsing dollar). Americans would then discover that not only are "cheap" goods no longer cheap, but all the factors of production are now located in a country(ies) with dissimilar strategic outlook, political ideals, objectives, racial composition and a rapidly gaining (perhaps passing in the not to distant future) military force. If it is not such a price shock, the arb will end when the real wages of the third world and the American middle class / working class (those not employed by the state or pure entrepreneurs) have been equalized, as is dictated by the law of one price. In other words, the working class / middle class in the private economy still have much, much farther to fall. I predict that animosity towards both government workers and entrepreneurs will grow tremendously, even though these two groups are usually considered polar opposites. Of course the connecting factor is that they will be the only groups that will thrive in the "new" global village. Everyone else will increasingly be pauperized in a struggle for survival against both floods of increasingly hostile immigrant groups and fellow paupers on the other side of the world. Immigrants will be increasingly hostile, at least in part, because they will receive an increasingly hostile welcome, as most do not welcome a guest at the table when it means other family members must do without. In times of hardship people revert to the most basic, fundamental associations (just like in prison). Clan/race wars, regionalism, tribalism etc will all begin to break out and once again become mass movements. Juries will choose innocent or guilt on racial lines. Gang warfare will be along racial lines. A coalition of "browns" will hijack the political process in order to take pie (taxes, jobs, land, contracts, licenses, votes etc) from what will be considered, "the old America" otherwise known as whites, and this will be the upcoming center stage event. (The future looks very bleak for whites. How could it not be? We teach kids in school Whites are the most evil people in the history of the world, then we flood the country with non-whites. Is this a good strategy? I wonder if the Chinese would ever be this stupid?). The side-stage will be the various non-whites fighting (often lethally) among eachother. The ideals of individualism will completely collapse. America will no longer be a place where you pack up the car and go on a family vacation cross country, as when you venture into the "interior" you will increasingly find it a hostile wasteland where constant, low level regionalist/race/gang wars are constantly being waged. It is true we are historically speaking extremely fortunate. This is exactly why the changes will so enrage people. To lose something once had can be more painful than never knowing what was lost existed. For example if we did not know a hot shower existed we would not rue its absence. Hopefully I am dead wrong about all this.
Wut? Stop blaming it on the blacks. The blacks became racists losers not because of their blackness because the whites liked to keep them in the ghettos. WHy are public schools in black cities so much worse then in white cities? Because of white racism.