Originally posted by: Stunt
Nice try, you are attempting to discount globalization, tax incentives, trade, wealth, revenues, gdp, corporate relations in one half-assed lame brained paragraph...congratulations!
First off, globalization is merely the integration of many economies allowing countries to focus on their strengths. Much like we do in our everyday lives, you trade your goods and services for the goods and services of other professionals. Why should I grow food, assemble a car when my specialization is education; trade is defined as a mutually beneficial relationship. Most of the best economic growth and wealth generation have occured as trade barriers have been reduced and/or eliminated.
Outsourcing is a mere extension of globalization, except the labour prices are far more exaggerated than they were with Canadian and even Mexican trade. I am a firm supporter of outsourcing when it is financially viable as not only does it offer reduced costs for our consumers, the vast majority of profits remain within our borders, and third world nations have the ability to raise their standard of living. The key to this sentance is "financially viable", meaning once you consider costs of transport, storage on both sides of the pacific, spoilage, reduced lead times, costs of closing up shop in North America; the product still has a significant price advantage.
Corporations are in business to serve their customers and nothing more; this means if the consumer demands the absolute lowest price, this is what the corporations strive for. Similarly if the consumer demands a quality or specialty product, they are less concerned with the cost and companies are less threatened by competition and will continue to pay the higher rates of pay. I'm not saying the consumer is wrong in this mindset, they have every right to the least expensive products the world has to offer. It has been shown time after time, consumers when given the choice between american made expensive item vs. china made inexpensive item, the chinese object usually wins. Fault of the corporation? I think not.
The tax incentives made by the government is merely a result of two things; tax rates that are too high and handouts by politicans who were elected on the backs of corporate interests. You are right, America should not be bending over backwards for corporations, it is not the government's place to get involved in business unless a company has prevented a natural market from existing.(ie. monopoly) As long as the company is serving the requirements set forth by the consumer; labour and environmental regulations are met, they are not doing anything wrong and should not be looked at in such a bad light.
What is happening overseas is truely great, people with little or nothing to offer the world are working, putting food on the table, learning skills they would have never experienced, and at the same time getting a taste of freedom, capitalism and wealth. As these people make these products, they will work extra hours and try their absolute hardest to one day afford the luxuries of the western world. We see it everyday in China, people are buying cellphones, cars, etc. Are their labour and environmental laws as strict as ours? No. But we are by no means good either and we have lived through the progression asia is currently going through; child labour and factory conditions. With time they will understand the benefits of a healthy population and their people will demand the same rights of the west; this will take time, just as we did years ago. People expect a 3rd world country to instantly develop into an upstanding 1st world nation overnight not understanding the poeple will choose the rights and freedoms they want and this tends to follow in the steps of wealth generation.
One thing one must realize when considering the manufacturing sector is the ideal number of jobs is zero. With the progression of technology and efficiency, it no longer requires the labour content it once did; the net result will be zero manufacturing jobs. Cocacola, a company who produces all American products domestically has a dark factory in Texas, it never turns on the lights as it runs itself. This is where manufacturing is headed; very few people are actually supported by this facility. Does it matter if this is done overseas or domestically? Of course not. This has happened in the agriculture sector as well where many people farmed in the past, but as of late there have been very few farmers. Human nature is to strive towards efficiency and reduced costs through innovation or alternative methods. Personally when it comes to manufacuring, I would much rather see the 3rd world utilize what they have to offer the rest of the world (labour) than us selfishly attempting to keep the minimal jobs domesitically (progression of manufacturing).
I've always wondered why people fear a service based economy, i mean the vast majority of jobs are already in this sector, they are all high paying and respectable jobs; just because we have less button pushers doesn't mean the economy is any worse off. Examples of sectors considered "Service" are: Healthcare/Hospitals, Insurance, Government, Tourism, Banking, Retail, Education, Franchising, Restaurants, Entertainment, News media, Leisure industry / hotels, Consulting, Transport, Utilities, Infrastructure, Wholesaling. Lawyers, Doctors, Teachers, Accountants are all respectable positions and now form the backbone of the eoncomy; and I am not ashamed of this.
Fact of the matter is, the US GDP is growing in part because all areas of the economy are more efficient, American investments are doing well, people are educated, and population continues to grow. It is still the wealthiest nations in the world after decades of fewer trade barriers, and outsourcing/globalization. The American people are able to afford more products and services than they have been in the past, and even if blue collar manufcaturing work is on the decline (either through outsourcing or the natural progression of humankind) the American people will continue to get cheap products, and corporations who still have administrative offices, warehousing operations, not to mention all the service sectors out there...will give profits to the rich who in turn buy luxury items manufactured domestically and will invest profits into the economy. The wealth distrobution will continue as there is a wide range of skills, abilities and education.
