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To: pigdog

Hmmm....trashing commonsense? In what way?

Do you have a bigger/better point to make as opposed to emotional outbursts?

It is good for US companies (technology ones) to invest in India. It beats investing hundreds of Billions in Red China or the Middle East.


34 posted on 12/07/2005 10:33:47 PM PST by indianrightwinger
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To: indianrightwinger
It is good for US companies (technology ones) to invest in India. It beats investing hundreds of Billions in Red China or the Middle East.

Kind of like when we funded the Northern Alliance against Al Queda, right? An excessive comparison, but you catch the drift..

52 posted on 12/07/2005 11:16:02 PM PST by Windsong (FighterPilot)
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To: indianrightwinger

Actually, IRW, your initial post sounded to me like an emotional outburst attempting to justify outsourcing in general. The common sense comment stems primarily fropm the claim that "The issue of transferring jobs overseas is a red herring because these type of R&D jobs are anyway held by immigrants to the US".

Such a claim is nonsense in the longer run and has only a degree of truth in the shorter run due to economic considerations. The larger problem is a problem caused by the throttled-down US economy rather than any comparison to the overall investments or R&D investments of any particular company. I believe that a statement like the one you made is a red herring. In fact, the outsourcing of jobs is very germane matter to the to US ecomonic conditions.

Foreign companies invest and position plants in the US largely for two reasons - tax benefits compared to their native country and being physically close to a given large-consuming market gives these firms certain benefits that are helpful in expanding and directing their business.

Much of the lack of US competitiveness stems from existing US tax policies which burden a US exporter operating in other countries (as opposed to many of the home countries offering their native firms what amount to benefits for operating in the US). It is hardly a level economic playing field and it is the economic effects of this sort of consideration that at least partially or even largely leads to the economic pressure behind outsourcing of jobs. After all, relatively cheap labor has been available throughout most of the past 1 or 2 hundred years and only recently has this trend accelerated and intensified.


65 posted on 12/08/2005 11:45:44 AM PST by pigdog
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