Originally Posted by Urban Cowboy
While I can say that I'm not totally on board with all of Bush's economic policy, I think he has this one right. With outsourcing all parties involved are helped out. It is an issue of competitive advantage. I think the mistake many people make is to state american jobs are lost, and forigen workers are underpaid. In many cases, workers, while making less than their american couterparts, make more than fair wages in their own countries. This grows their national economy's and eventually grows the standard of living. Onm the home front, we benefit in many ways. First, the cost of goods and services decreases. People like to complain about losing jobs, until they can't afford a plane ticket, or a new computer. Second, we are able to "specialize" and produce goods and services that we have an advantage at. I'm not sure if you know it but Japan is outsourcing to the US right now. As to the point of 3rd world countries not being able to establish themselves, I simply point to the "Asian Tigers" of the 80's now have some of the fastest growing economies in the world. In the long-run outsourcing really does help everyone.
Good post and you are indeed mentioning some positive sides of outsourcing. Didn't say it was onesidedly negative or negative all the the time.
A few things though.
I can't see how someone without a job would be able to afford plane tickets and new computers in the first place and that is kind of beside the point. A lot of things are always cheaper in the country where they are being made. Volvo merging with Ford and their move of some of their production to America has not decreased prices on Volvo automobiles in Sweden. It may have effected the Volvo stocks, I really can't say, but it hasn't lead to cheaper cars.
The asian tigers are not 3rd world countries and the tigers were being tigers on the asian markets before they entered the american and european markets. When I talk about hypocrisy concerning Free Trade in America and Europe I think primarily about agriculture. A lot of very poor countries in the 3rd world are dependent on their agriculture products since they have no modern industry. Their agriculture products are just fine and also much cheaper than the agriculture products from the rich countries. But instead of applying real Free Trade and buy the best and cheapest products the rich countries agree between each other to buy each other's products instead. And this even though most modern countries produce a surplus of agriculture products. This is nothing less than protectionism and anti Free Trade and anti good globalization.
Originally Posted by Yoda
You're being somewhat vague. Which liberal business regulations "create a healthier climate on the market," and which of Bush's politics have encouraged the opposite? And what do you mean by "fully vertically integrated"?
You're speaking in generalities, but I've been repeatedly asking for specifics. Without specifics, there's no way for anyone to contend with what you're saying. Once you make a claim supported by evidence that can be either proven or disproven, then we can have a discussion about whether or not what you're saying is true.
Well, I don't know the correct ideological label is "liberal". I was just putting it in comparision to the conservative politics that Bush stands for.
What I mean with regulations is that I think the market should be free but within certain frames. The whole purpose with a free market is that it should remain free and firstly create healthy competition and in the longrun serve the consumers, i.e. the people, the best way without active involvement from the state. A market climate where it is possible for a few corporations to swallow the entire market and knock out small market actors creates conformity, products with lower quality and higher price tags and fewer options for the consumers.
Concerning Bush's politics I can only speak about what I have studied a little more carefully, and that is the media world. If I have been informed correctly there has been some regulations withing the american media industry in the past with purpose to promote as many different voices as possible to be heard, so to speak. These regulations that, again if I have been correctly informed, the Clinton administration if not was responsible for then at least protected, made it impossible for big conglomerats to own too many levels of the media market.
Which leads me to the concept of vertical integration. (Chris, I know I have told you this before...).
If a media company is vertically integrated it means that it owns all parts or levels in the information chain so to speak. If we talk about a movie, in the 40's the vertically integrated film companies owned the production company, the distribution company and the movie theater chain. The so called Big Five divided the market between themselves. This ended in, I think it was 1949, when The Supreme Court decided that this was a kind of monopoly and proclaimed it to be illegal to own all three levels of the market.
Today, we have a few of enormous media conglomerats that own production companies, distribution companies, video rental chains, magazines, newspapers, radio and tv channels, music companies, interactive services and so on. The whole purpose is to make as much money on the single product as possible from the start until the end. If you own all the companies in the process you never lose any money through buying anything from other companies from outside of the conglomerat. And to make a very long story a little bit shorter, this is a form of monopoly that I don't like.
To be honest though, America without a doubt still has one of the world's most free and open media markets. But why change that?
But you can only determine ideology through statements and actions. So if someone has an ideology, you should be able to point to specific instances of it, either through what Bush has said, or else through what Bush has done.
I think I just tried to did that above.
Huh? Conservatism isn't unlike Communism? I don't know what kind of definition the word "conservative" has, to you, but it doesn't even remotely resemble the meaning of the word as I've come to know it.
Where I come from, conservatives are generally pushing for freer, more open markets; the exact opposite of Communism. American liberals, on the other hand, are often the ones who think that constant government intereference is necessary. Seems to me that the party in favor of increased governmental regulations is the one far more concerned with control.
Well, I just told you why theoretically communism and conservatism isn't that unlike each other, didn't I? Communism after having taken power by revolution and thereafter created a communist state isn't radical. On the contrary, it is very conservative and desires no change. Conservatists claim to be working for an open market but their passivity on the market only leads to that allready powerful companies ensure their position on the market. This leads to fewer but bigger and mightier actors on the market which resembles of communistic monopoly.
You seem to be for a market as free as possible. But you assume this is only accomplished by allowing some kind of market anarchy. I would like to ask you what the purpose of an open market is. Is it to make sure that a few people make as much money as possible or is it to create lots of jobs and good products?
He is. He wants to actively discourage global employment because he naively believes that the free market approach works within America, but not worldwide.
What I think he is saying (I have never heard him speak about it, just assuming he is being the average liberal about it) is that first you see to your own house, that it is standing on solid ground, then you expand.
I really shouldn't speak about Edwards. I can only say what my general thoughts on the subject is.
And what happens when it continues? The more demand there is for "cheap labor," the quicker it stops being cheap. The market, if left wide open, eventually balances itself out.
Imagine if you could only get Germany's fine automobiles if you were German, or if you could only get French food if you lived in France. The world's a better place because of trade; it makes the best products in the world available to people all over the world, regardless of where they live. You used to only hear the best singers in your town; now we can all enjoy the best singers in the world.
This is clearly a very good thing, yet when it comes to jobs, people throw reason out the window, and start getting emotional. But, economically, there's no difference between sharing jobs, and sharing products. Do you want to keep your job over a cheaper, better worker somewhere else? Okay, then the price of the products you make is going to be a bit higher for everyone else. Most economists acknowledge that there's no active difference between the two, but that doesn't stop people like Kerry and Edwards from preying on worried Americans with warnings about how they're going to ship all the American jobs overseas.
Hmmm.. The first to paragraphs in this segment really does not make sense. Why can't I buy a german car in Sweden even if it was made in Germany? And french chefs are free to work wherever they like and that hasn't much to do with the product, the food, they are making.
When you move production from one country to another you do it to increase the profit. By spending less on salaries you can earn money because as opposed to what you seem to be thinking, prices don't go down when you outsource to other countries. The prices always go up or at the best stay the same, but the company makes more money. And there's nothing wrong with that. But unlike you I think there is a big big difference between jobs, which ultimately is the same as people, and products but I am not surprised that you, as a conservative, think so.