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Outsourcing: Threat or Menace?
Capitalist Magazine ^ | May 9, 2004 | Don Luskin

Posted on 05/18/2004 4:54:44 AM PDT by Remember_Salamis

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1 posted on 05/18/2004 4:54:44 AM PDT by Remember_Salamis
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To: Remember_Salamis
Outsourcing: Threat or Menace?

It's both a threat and a menace. The free traitors are ripping the heart out of America so they can buy cheap garbage from Great Wall Mart.

2 posted on 05/18/2004 5:06:51 AM PDT by neutrino (Everybody, soon or late, sits down to a banquet of consequences. Robert Louis Stevenson.)
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To: neutrino; *Taxreform

Normal outsourding is good; over-outsourcing, as we are cuttently doing is bad. Our extremely high level of outsourcing is due in large part to our twisted tax system that taxes corporate profits at home and abroad. We are the only nation on earth that does that.


3 posted on 05/18/2004 5:11:50 AM PDT by Remember_Salamis (Freedom is Not Free)
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To: Willie Green; Wolfie; ex-snook; Jhoffa_; FITZ; arete; FreedomPoster; Red Jones; Pyro7480; ...
"Outsourcing of professional services is a prominent example of a new type of trade ... When a good or service is produced at lower cost in another country, it makes sense to import it rather than to produce it domestically. This allows the United States to devote its resources to more productive purposes."

"United States to devote its resources", what is he talking about?! The money saved on American wages or made in transfer of American production base end up in the pockets of CEOs and international shareholdres to be invested/spent abroad or lent at interest to cover the deficit. United States has to devote more of its reasouces to help the jobless or underemployed.

4 posted on 05/18/2004 5:12:37 AM PDT by A. Pole (<SARCASM> The genocide of Albanians was stopped in its tracks before it began.</S>)
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To: A. Pole

Again, due to the tax code


5 posted on 05/18/2004 5:14:56 AM PDT by Remember_Salamis (Freedom is Not Free)
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To: Remember_Salamis

Outsourcing is an exxagerated campaign issue. If Kerry is elected in 2004 he will never stop campaigning, he'll be running to be re-elected in 2008. This means pandering to to workers who do not understand how important it is not to mess with Free Market forces. Most Americans were guided through their education process by unionized government workers who have their votes bought by the Democratic party. This is why they are so easily duped into believing things like outsourcing is a great threat to the American worker. And believe that this economy is in bad shape instead of booming out of the Clinton recession. Defend our America! Fight the enemy's propaganda!


6 posted on 05/18/2004 5:23:14 AM PDT by HankReardon
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To: A. Pole

If outsourcing were so good, we shouldn't be seeing the growing trade deficits, budget deficits, and the sky-high national debt.


7 posted on 05/18/2004 5:33:38 AM PDT by FITZ
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To: neutrino
Outsourcing: Threat or Menace? It's both a threat and a menace. The free traitors are ripping the heart out of America so they can buy cheap garbage from Great Wall Mart.
You beat me to it, my thoughts exactly.
8 posted on 05/18/2004 5:39:44 AM PDT by TXBSAFH (KILL-9 Needs No Justification)
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To: A. Pole
Interesting contradictions everywhere in this article. For example, in the paragraph below, the author seems to be assailing and decrying "amorphous fear" and "non-logic", presumably because the very real and palpable fear people have over losing their livelihoods doesn't fit his globalist world-view:

First, it is an amorphous fear about the unknowable future more than it is a realistic observation about the present. So the message is, "Yes, I know the economy is recovering and you have a good job. Today! But two years from now that job could go to China! If you don't vote for me, that is." You can't argue with that kind of non-logic. But it doesn't even have to be logical. It just has to be scary.

Then, just a few paragraphs later, he quotes The Main With The Political Tin Ear, Gregory Mankiw, who, if Bush loses this election because of the trade/outsourcing issue, could be the one most to blame, as saying:

"Outsourcing of professional services is a prominent example of a new type of trade ... When a good or service is produced at lower cost in another country, it makes sense to import it rather than to produce it domestically. This allows the United States to devote its resources to more productive purposes."

"...more productive purposes." Hmmmmm. Interesting. Just what are those "more productive purposes"? Doesn't say. Can't say? Doesn't matter, just has to be "more productive". Nothing like a little "amorphous" "non-logic", yes?

So here we have the crux of the globalist argument. Lost your job to outsourcing? Tough, do something else. What else? Well, hell, I don't know, not my problem (I've still got a job), you figure it out. Having trouble holding onto your home, your family, all that you've worked for? Well, screw you. Sold out the country's capabilities? Doesn't matter, we'll all just go do something "more productive". Concerned that the country no longer has an industrial and military infrastructure that helps preserve the very freedom the globalist traitors use to justify their world view? Well, you're just a protectionist jerk, so shut up and take it.

Well, you know, as always, there are a lot of conflicting views on this. But one thing I know from experience, being on the ground here in a crucial battleground state for this upcoming election. And that is, Bush is losing this state, and a significant number of people are voting against him because of this outsourcing/unemployment issue. As much as people like the author of this article rail against those who have concerns about the current trends of selling out the country and destroying the livelihoods of its citizens, their very advocacy of such policies will lead to the election of political leaders who will give them precisely what they say they don't want: increased protectionism, oppressive regulation, higher taxes, and bloated government.

9 posted on 05/18/2004 5:41:56 AM PDT by chimera
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To: FITZ

Furthermore this issue could be the one if used in the right way with the right running mate, say Edwards. To put a rat in the Whitehouse.


10 posted on 05/18/2004 5:43:11 AM PDT by TXBSAFH (KILL-9 Needs No Justification)
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To: neutrino
The free traitors are ripping the heart out of America so they can buy cheap garbage from Great Wall Mart.

Your solution? Buy expensive garbage. To the barricades!

11 posted on 05/18/2004 5:44:17 AM PDT by 1rudeboy
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To: chimera; *Taxreform

What the speaker is saying is that outsourcing is an unintended side-effect of free trade, and you can't get rid of outsourcing without getting rid of free trade.

But it can be done. It can be done by implementing the FairTax, which would make goods produced in the US EXTREMELY competitive overseas. We currently are the only nation on earth that taxes profits made at home and abroad. That will end.

It is well-known that corporate taxes are merely passed on in the form of higher prices. That will end. As a result, it will be cheaper to manufacture in the US.

Go to http://www.fairtax.org to find out more. It is a national sales tax that would make American Manufacturers extremely competitive. If you want to know more, let me know.


12 posted on 05/18/2004 6:02:08 AM PDT by Remember_Salamis (Freedom is Not Free)
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To: 1rudeboy
Buy expensive garbage.

Why, yes, actually. Domestic products will be more expensive but affordable for people with good paying jobs, which, if commodities are produced domestically, there will be no shortage of.

Of course, then third world hell holes will be economically borderline and therefore unhappy, which state of mind is a threat to the budding global governance.

13 posted on 05/18/2004 6:11:06 AM PDT by William Terrell (Individuals can exist without government but government can't exist without individuals.)
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To: Remember_Salamis
It is well-known that corporate taxes are merely passed on in the form of higher prices.

Well, this is why I have always taken a somewhat dim view of politicians who say they are going to make things fairer for the consumer by making corporations pay "their fair share" of taxes. There is only one group who pays taxes, and that is the average citizen. Demagogues have always tried to paint a picture in the public mind of a bunch of old, fat, cigar-chomping men sitting around a table in an oak-paneled room with a pile of gold in the basement as being the ones "we're going to get". In fact, a more accurate picture would be a working stiff paying a price at the cash register.

14 posted on 05/18/2004 6:16:42 AM PDT by chimera
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To: 1rudeboy

I do not know what you buy sir, but the items I purchase, made in America are of the highest quality. Yes I may have to search a little and be discriminating. But is that not the way with all purchases?


15 posted on 05/18/2004 6:17:17 AM PDT by TXBSAFH (KILL-9 Needs No Justification)
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To: William Terrell
Domestic products will be more expensive but affordable for people with good paying jobs, which, if commodities are produced domestically, there will be no shortage of.

You were fine until the "which." Folks that spend more of their income, whether it is high or low, than necessary on a particular item have less to spend on other items, resulting in fewer jobs all the way around as aggregate demand suffers.

16 posted on 05/18/2004 6:18:25 AM PDT by 1rudeboy
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To: TXBSAFH

Yes, American goods are of high-quality, but we are moving into a services-based economy (information economy). Just as Luddites smashed machines who replaced them during the Industrial Revolution, so too will we have our discontents with the Information Revolution.

Remember, the Industrial Revolution was extremely turbulent, but it settled down. We are at the dawn of the Information Revolution, and it too will be extremely turbulent, but it will settle down. If we don't play along, we will be left along the side of the road like all the piss-ant countries that didn't take part in the Industrial Revolution.


17 posted on 05/18/2004 6:25:54 AM PDT by Remember_Salamis (Freedom is Not Free)
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To: TXBSAFH
You are making my point. Independent actors pursuing their own rational self-interest allocate economic resources most efficiently, not even realizing what they are doing in the first place. That, in a nutshell, is the theory of the Invisible Hand.

It is also the theory most roundly ignored by those who blather-on about "cheap" goods at Wal-Mart.

18 posted on 05/18/2004 6:26:05 AM PDT by 1rudeboy
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To: neutrino

Bunch of psychobabble ain't it. It'll all be ok - just let us gut you and it will all be ok - trust us.


19 posted on 05/18/2004 6:30:17 AM PDT by Havoc ("The line must be drawn here. This far and no further!")
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To: 1rudeboy

I buy American for two reasons. One I find the vast majority of the goods to be of high quality at a reasonable price for that quality. Example, I was a pipe fitter in my twenties before I went into IT. I used and still ahve hanging in my garage a 25 year old rigid 24" pipe wrench. A coworker bought a made in china one and we had to run 2" screw pipe for a month straight. The China one broke in two weeks the American one is still ready use. The second is I believe in support my fellow countrymen. I get what I want with high quality made in the USA.


20 posted on 05/18/2004 6:32:01 AM PDT by TXBSAFH (KILL-9 Needs No Justification)
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