To: Luis Gonzalez
In some cases, maybe. In most cases, I think not.
When labor cost is the only leverage you have in the market, you can't very well allow wages to increase. Indian outsourcers for skilled labor do not offer "service" or "outcome-based" billing. They offer per-hour labor only, because this is their only market advantage.
In the case of China, labor has been completely commoditized - wages will always be low because the goverment decreess that they will be low. Troublesome areas that may crop up will be squashed and replaced to perpetuate commodity-based human resources.
Meanwhile, we here in America do just the opposite. Onerous goverment regulation, a tax structure that punishes success, minimum wage...these things price Americans out of the market to the point that corporations are willing to take their chances that the money saved will offset the lack of flexibility and accountability that offshoring has.
30 posted on
02/29/2004 7:34:44 AM PST by
Doohickey
("This is a hard and dirty war, but when it's over, nothing will ever be too difficult again.”)
To: Doohickey
"Meanwhile, we here in America do just the opposite. Onerous goverment regulation, a tax structure that punishes success, minimum wage...these things price Americans out of the market to the point that corporations are willing to take their chances that the money saved will offset the lack of flexibility and accountability that offshoring has." And of course, we are all in agreement that to fix this American inability to compete due to government interference in trade, we need more government interference in the way of tariffs to hide the obvious consequences of these regulations transforming into the inability of the US to compete in the world market...in spite of our herculean productivity.
142 posted on
02/29/2004 3:19:18 PM PST by
Luis Gonzalez
(Unless the world is made safe for Democracy, Democracy won't be safe in the world.)
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