Outsourcing backlash hits India

NY Times via Seattle Post-Intelligencer ^ | February 17, 2004 | SARITHA RAI

[1rudeboy]

Cronos . . . now wants us to believe that PRC slave-laborers will buy American-made cars (which one? Intrepid? Vette? Taurus)--shipped over to PRC, on your basic $0.27/hour income.

Seeing that China is the biggest potential market for autos in the world, and foreign automakers are rushing to break into that market, I suspect that your economic analysis is lacking when compared to the folks actually making the decision to build there.

[1rudeboy]

Please see my #139.

[ninenot]

China is the biggest potential market

Keep repeating "potential, potential, potential, potential" as you make POTENTIAL payments to your POTENTIAL lender based on POTENTIAL profits derived from POTENTIAL sales.

Bet it doesn't work at your Bank...

[ninenot]

Actually, things are progressing beautifully.

American wage-arbitrageurs who find that Chinese slavery is a better deal than American living wages are finding that the wage-slaves and their PRC masters steal EVERYTHING they can from the Americans.

Too bad our military and court systems can't interfere.

I feel soooooooooooo sorry for the US firms who got ripped off...</sarcasm

[1rudeboy]

Bet it doesn't work at your Bank...

Bet it does, as long as one ditches the loser-attitude.

[maui_hawaii]

"We are concerned that this is federal legislation and that it is sponsored by a Republican," said Kiran Karnik, president of the software association. "Republicans are traditionally free-marketers."

Maybe because he doesn't want to lose his seat in Congress to someone else...

[maui_hawaii]

"It smacks of retaliation that 'if you don't open up, we will impose restrictions,' " Sinha told reporters last week.

Hell, we need to do that with China and maybe a couple of other places, but China for sure.

[maui_hawaii]

Let me let you in on some politico economist speak:

Lets say you had a factory making wigits in Oregon. Right next door, you have your corporate office which employs the accounting crew and the sales dept. (about 100 people total)

If that company then decides to close the wigit factory and move in to China...

The statistics people will claim that "trade has created" every job left in Corp HQ.

Sometimes the more honest ones use the term "rely on" rather than "create", but most use the term "create".

[ninenot]

Uh, actually about 80 jobs. Twenty of the Corp. types will get cut: manufacturing engineers, lower-level accountant-types, and the HR staff except for 1.

Of course, there's another effect: whoever sold MRO or OEM to the closed factory will ALSO lay off a couple of folks, somewhere downtrack--which means that they, too, will cut back on accounting and legal services, etc...

[1rudeboy]

Likewise, if that factory in Oregon has a cafeteria, and management decides to out-source the cafeteria work to a contractor, then it counts as "manufacturing jobs lost."