Interesting People mailing list archives
Maybe there's no mystery after all
From: Dave Farber <dave () farber net>
Date: Tue, 06 Jan 2004 12:11:53 -0400
-----Original Message----- From: Peter G Capek <capek () us ibm com> Date: Mon, 05 Jan 2004 23:09:13 To:dave () farber net Subject: Re: [IP] Maybe there's no mystery after all A propos of the offshoring issue... I think a recent letter in the NY Times summarized it well: Would we rather live in a country where everything is 10% cheaper, or where most people are employed? I believe it ultimately is pretty much that simple. Jobs which are offshored, whether manufacturing, call center, or technology related, don't create a multiplier effect as the earnings are spent in this country, don't pay taxes in this country, and, of course, don't generally adhere to the safety and human rights standards which we believe are important. Even if the difference were 50% cheaper (it's not!), it still seems to me an easy decision. Unfortunately, the nature of the competitive system is such that, once one business in an industry has proceeded this way, it's difficult for the others not to follow in order to compete. Indeed, doesn't the fiduciary responsibility of a (publicly held) company require it to behave so as to maximize the return on its investors capital, consists with the company's bylaws? When the decision is, say, between building a new plant or advertising a current product, there's room for a lot of opinions in making the decision. But when the issue is as (apparently) straightforward as paying $X/hour or paying 15 or 20% of that amount, as the business manager, I won't be concerned with the secondary issues of taxes, multipliers, employment and so on. Those won't have effect until at least next quarter. Peter Capek Peter G. Capek IBM Thomas J. Watson Research Center Yorktown Heights, NY 10598-0218 (+1 914) 945-1250 IBM Tieline: 8-862-1250 Fax: X 4426 ------------------------------------- You are subscribed as interesting-people () lists elistx com To manage your subscription, go to http://v2.listbox.com/member/?listname=ip Archives at: http://www.interesting-people.org/archives/interesting-people/
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- Maybe there's no mystery after all Dave Farber (Jan 05)
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- Maybe there's no mystery after all Dave Farber (Jan 06)