Maybe there's no mystery after all

[Dave Farber <dave () farber net>]

-----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 

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