On Apr 17, 12:08=A0pm, Jerry Kraus <jkraus_1...@[EMAIL PROTECTED]
> wrote:
> On Apr 17, 10:40=A0am, solon fox <solon...@[EMAIL PROTECTED]
> wrote:
>
> > On Apr 17, 9:34=A0am, ZerkonX <Z...@[EMAIL PROTECTED]
> wrote:
> > The only legal way to redistribute wealth is through taxation. Any
> > other method violates property rights and is theft. Hmm... makes you
> > wonder about the morality of using the tax code as a lever against
> > property rights. We need fairness in the tax code.
>
> Our main area of disagreement, Mr. Fox, seems to be the degree to
> which we think the government should regulate property rights. =A0You
> think as little as possible, I think it depends a great deal on
> cir***stances. =A0For example, I think the desirability of outsourcing
> -- allowing American companies to hire foreign workers to produce
> "American" products for the American market -- is highly dubious.
> Nevertheless, for the moment, it is quite legal. =A0It allows companies
> to produce products more cheaply, but at the cost of decimating the
> U.S. labor market, and of catastrophically reducing American
> salaries. =A0It leads to an enormous transfer of Capital into the hands
> of the senior executives of cor****ations, who can search for the
> cheapest workers around the world, and then sell their products on the
> U.S. market at virtually whatever profit margin they choose.
>
> Yes, American products would be more expensive. =A0But, Capital wouldn't
> be transferred en masse into the hands of foreign workers and wealthy
> American CEO's. =A0Vastly more American workers would benefit. =A0And,
the=
> American economy would benefit from more people having more money to
> spend. =A0Making outsourcing illegal is a simple example of how I
> believe, reduced property rights would benefit the U.S. population as
> a whole.
Mr. Kraus,
Labor is not property. As such, the US government does have the right
to regulate outsourcing - though exactly how that would be
accomplished is a difficult question to answer.
While you are correct that I am a property rights advocate, it does
not necessarily follow that I do not accept property taxation as a
legitimate means of collecting revenue for the government provided
that taxation does not become oppressive and is applied fairly and
equitably to all property owners.
As to offshoring (not all outsourcing is offshoring), we are likely in
agreement. From a practical perspective, I believe that outsourcing is
inevitable, but that doesn't mean that we can't slow it down. Many
economists hold that outsourcing actually creates jobs, however in
today's age of technology the rapidity with which outsourcing occurs
far outpaces the workforce's ability to adapt.
My personal experiences with using services in India on several
projects (involuntarily and against my advice granted) were that the
India resources were 1/4th of the cost per person, but when one adds
in training, management and oversight, the true cost per person was
1/3rd of the costs of a US-based resource. Nonetheless, the quality
was horrendous leading to many times the rework and the need to double
the workforce in order to stay on schedule. In reality, I don't think
we saved anything and that a similar project with solely US-based
resources could have come in on schedule and underbudget without all
the heartburn and angst. In fact, in a simple workforce comparison, I
don't think that it is a good business decision to offshore.
I have had similar experiences on multiple projects - and though I
cannot share the details and the numbers with you here - I have
incontrovertible data that shows that the supposed cost savings are
non-existent.
However, we have another problem; we simply cannot hire enough US-
based resources to do all the projects we have, even though I would
like to staff every single project with all US-domestic staff.
Another problem is that senior executives (and clients) simply do not
see the productivity and quality differences that I see. All they see
is that this worker in the US will cost $10,000 and this worker with
an identical education will cost $2,500 (actually, $3,400 today due to
the weakened dollar and upwards wage pressures in India) in India.
It's too easy for them to overlook the questions of productivity and
quality.
By the time America wakes up to the loss in quality, the jobs will be
irretrievably gone as the American workforce will have found other
ways to remain gainfully employed.
So, yeah, I have meandered a bit off topic, but I agree with your
position on offshoring, Mr. Krauss. I would sup****t any reasonable
political solution that promises to stem the tide.
-solon fox
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