The Harsh Truth About Outsourcing

Business Week ^ | March 22, 2004 | Paul Craig Roberts

[EGPWS]

What has happened is that companies have re-engineered themselves to take advantage of technology.

Southhack, you are always there when the obvious is needed to be conveyed!

To consider what the USA has accomplished economically as questionable is downright anti-American or at best ill-informed rhetoric.

We are what friend and foe wish to be.

Some admit it, some don't, and some try to stifle it through their own petty frustration.

[Southack]

Your Canadian source is dubious at best.

[sarcasm]

Your White House source is even more dubious

[Southack]

"Your White House source is even more dubious"

Nonsense. You don't even know what goes into the methodology behind your Canadian study (CPI-U-X1) that makes it different from the U.S. government's CPI index, I'd wager (and since "dubious" means doubtful or suspicious, that's an important failing on your part).

Source: Authors' analysis of CPS ORG data; inflation-adjusted using CPI-U-X1.

[sarcasm]

You actually believe government propaganda? BTW, CPI-U-X1 is issued by the U.S. Census.

[Southack]

"You actually believe government propaganda? BTW, CPI-U-X1 is issued by the U.S. Census."

So you are citing a Canadian study that uses U.S. Government data and calculations for CPI-U-X1, don't know the difference between CPI and CPI-U-X1, and yet you think that the government data that I cited is propaganda (even though you can't say specifically why)?!

[neutrino]

Excellent article! This describes how the free trade theories of Ricardo (circa 1817) are now obsolete and destructive.

If you'd like to be added to (or removed from) the offshore ping list, please FReepmail me!

[sarcasm]

The statistics which you linked are from the budget - a political document - and you dare to state that it is not a piece of propaganda. Let's have your detailed analysis as to why the study that I posted is inaccurate

[Nick Danger]

This describes how the free trade theories of Ricardo (circa 1817) are now obsolete and destructive.

And we should replace them with government controls on the movement of capital!

These leftists masquerading as conservatives are startin' to irritate me.

[Batrachian]

If you're statistics are correct, then I guess I was wrong and we're in great shape. I hope so, because this is one case where I want to be wrong.

[Southack]

"The statistics which you linked are from the budget - a political document - and you dare to state that it is not a piece of propaganda. Let's have your detailed analysis as to why the study that I posted is inaccurate."

I rather doubt that you'd find any *analysis* persuasive, but I haven't given up hope that you might find *evidence* to be convincing.

So here's some food for thought: The U.S. is richer today than in the past, and this fact supports my government data that I posted above in Message #50 which shows that U.S. average wages have steadily increased since 1959 even *after* factoring in inflation.

Evidence that we are richer today than in 1959 would be along the lines of air conditioning: fewer than half of all homes in the American South had it in 1959...whereas more than 98% of them have it today. Number of cars per household are also up since 1959, as are the number and percentage of people who own their own homes. The number of people who invest in the stock market is up, too...as are the sizes of retirement and stock portfolios. Ditto for the number of aircraft owners and boat owners.

In short, measure after measure of wealth shows a steady increase in prosperity in the U.S....a fact that substantiates the government data that I posted to you which shows *average* wages rising.

On the other hand, some fields (e.g. software) have seen wage declines in recent years. If you are in one of those declining fields, then you could easily have a distorted view of the overall American prosperity picture.

[neutrino]

And we should replace them with government controls on the movement of capital!

Now, Nick. Surely you recall how we all objected to Clinton transferring technology to China a few years ago? The present partnering agreements required by China insist on technology sharing!

Offshoring is, quite literally, squandering our present military superiority in exchange for cheap toasters from WalMart. I urge you to reconsider your position.

[sarcasm]

Your argument isn't persuasive - you haven't addressed that fact that most families have two full time workers today as opposed to one in 1959.

[LibertyAndJusticeForAll]

And we have fewer children today, because most couples don't feel that they can afford to have more than 1 or 2 children. There were 3-6 children per family on my block in 1959.
No one talked about not being able to afford having children. Of course, there was no day care expense, because all the moms were home; able to help at PTA, in the classroom, Scout troops, church, etc.

[sarcasm]

And we have fewer children today, because most couples don't feel that they can afford to have more than 1 or 2 children.

But, but,that's impossible - I've just been told that we are so much wealthier today.

[LibertyAndJusticeForAll]

"free traders" are always confusing cheap toasters from Walmart with real quality of life.
Just like the CEOs they wish to emulate, they cannot get their eyes off the bottom-line. It's the same reason they still don't understand why we refer to American "citizens" while they only refer to "consumers".

[Southack]

"Your argument isn't persuasive - you haven't addressed that fact that most families have two full time workers today as opposed to one in 1959."

Then you haven't been comprehending the totality of what I've shown you: which is that even with two household workers now in the workforce per home...the *average* salaries and wages of all Americans have still continued to climb since 1959 even after being adjusted for inflation.

And average household wages, usually considered to be that of the employed husband *and* wife, have gone through the roof!

Average Americans no longer live wherever they can find someone to sell them a home on credit (or rent), such as "on the wrong side of the tracks," but rather, average Americans now live pretty much where they choose...being so rich as to be able to be snobby about various school districts that they "wouldn't let their kids be seen in" and other such luxuries.

[sarcasm]

Then you haven't been comprehending the totality of what I've shown you: which is that even with two household workers now in the workforce per home...the *average* salaries and wages of all Americans have still continued to climb since 1959 even after being adjusted for inflation.

You have yet to prove that the study which I posted is wrong. I await your detailed and sourced critique.

[Nick Danger]

Surely you recall how we all objected to Clinton transferring technology to China a few years ago?

Yes, I do. It was military technology, specifically guidance systems for ballistic missiles. That is why the government was involved. These were "works for hire" produced under government contract for the DOD.

Any argument which attempts to transfer that same quality to the manufacture of household toasters deserves to be dismissed as frivolous.

Ultimately, where your argument must go if it is to have any effect, is governmental restrictions on the freedom of American citizens to invest their own money as they please. First it will be, "Not there, or there," and from that point it will go to, "And not on that subject, and not for that purpose," and the next step after that will be, "Oh, just hand it over to us and we'll decide how to invest it."

I think it was Einstein who said that political space is curved. Keep going right far enough, and you pop out on the left. This is why we find Pat Buchanan, anarchists, and leftist radicals all in the same place on this issue.

[sarcasm]

BTW, I don't have a comprehension problem - I think that you have a problem with reality.