[StatesEnemy]

For discussion.

[cripplecreek]

I dont like outsourcing at all but if we do it we should be doing it where it does us the most good. I dont like NAFTA but think outsourcing to Mexico is better than outsourcing to asia.

[DannyTN]

I think the major problem is that we don't value the firms and the industries sufficiently. The owner values the firm based on discounted cashflows to him. However the true value of the firm to the nation is the owner's discounted cashflows, plus the employee's discounted cashflows, plus the government's discounted cashflows (taxes), plus cashflows flowing to downstream suppliers of goods and services. The employees and the government's take from a firm dwarfs the owners take.

I think a smart third world country with excess labor could borrow money from the world bank or wherever, buy companies and transfer their production capability to their own country. They can then discount the products and still have raised enough incremental tax revenue to pay back the loan with ease. Every smart third world country should be raiding our business with maximum speed. Especially our export manufacturing businesses, and our technology firms which are the easiest to raid. And I think India and China have figured this out.

[alex]

I will repeat myself the first thing to do is to lift IRS restrictions work with freelancers.