The Logic of Trade

Washington Times ^ | 8/18/03 | Daniel T. Griswold

[1rudeboy]

Check this thread out. Some of this forum's biggest opponents of OPIC "state their mind," establishing once and for all they know not what they speak. [smirk]

[Dr Warmoose]

wish he would tell us where he got his facts (e.g. American companies invest less than $2 billion a year in China, and far less in India.).

They are talking brick and mortar investments. Only a fool would think that "less than $2 billion a year" is being spent outsourcing high-tech work.

There are also many other problems with their cherry-picked statistics:

Many European companies already have a nexus in Asia. It is far more logical for a US investor to dump his money into a European firm that already does business with India or China (remember the UK has much closer ties with India than the US ever had) then to suffer the tax penalites for a US business doing the same. You may recall how Stanley Tools complained that profits made on goods manufactured overseas and sold overseas - never seeing the Western Hemisphere, let alone the united States, were taxed. In Europe, such profits are not taxed. Stanely Tools figured that by the US taxing everything regardless of any US connection, they lost $23 million in taxes alone. It makes far more sense to start your company, or buy a company in Europe (that shares Western contract law) so as not to have to cough up money to Uncle Sugar that was never earned here.

The Chinese and Indians have plenty of money. IN fact China is a major purchaser of US T-bills and is presently financing a major part of the Fe'ral Government's growing debt. (You may also recall that Free Traitors are exhuberant about China aquiring more control of our Fe'ral Government through this process when they keep telling us that only $400 billion in new debt is good.) There is nothing that stops them from building office space which cranks out far more revenue per square foot than manufacturing space.

The writer is deliberately losing focus and causing the reader to look elsewhere, in the same way a magician wants you to look somewhere other than where the "magic" is really taking place. The growing problem is "outsourcing", the process where an Indian or Chinese firm comes in and bids for assuming tasks and duties formerly handled domestically by a company. This huge amount of work does not show up in the narrowly defined category of "manufacturing", and thus the hundreds of billions of dollars shipped in the form of "outsourced" work won't show up.

I exepect nothing but lies from the anti-American Free Traitors - these lies pass like cargo-containers on a railcar. This is just another one on an endless train.