a reply to: Southern Guardian
you have noted a problem. a problem that has been arround for many years, and many governments. and a problem that has only been getting worse. and it
is a problem for pretty much every rich
country. being caused by companies outsourcing
manufacturing, and now remote service jobs like
telemarketing to countries where due to their lower cost of living, which equals much lower wages, means that corporations have to pay far less for
the same work than they need to pay people in the richer countries.
now what is the real cause of the problem? it is not really the government. the ultimate fault is with corporations and their quest for the highest
profits possible. a problem that is magnified by having stock markets. and driven by the lower wages people need to earn in order to afford to live.
there are a few ways this problem could be dealt with. but it would take the power of the governments of the richer nations to do. things that are not
likely to happen for three main reasons. reason number one of course is that because of campaign contributions almost every politician has been bought
and paid for by the rich and corporations. who of course expect those they pay to get elected (and many companies actually support candidates for
both major parties
, as well as the odd independent they feel have a chance at winning to hedge their bets and thus no matter who wins, they
win), to do their bidding. the second reason is that almost all politicians are rich themselves (or somehow seem to become rich while in office, like
Obama), and thus they are also doing what is best for themselves. the third reason is actually interesting. it is the fact that the more profits that
a company and the rich earn the more tax money the government earns. at least theoretically, since those corporations and the rich have built in so
many loopholes for themselves into the tax code so they get out of paying a lot of what they should pay. but that tax money is what the government
relies on to pay for everything. that tax money is what politicians, especially the democrats in the US and other liberal
leaning parties in
other countries, rely on to buy off voters to vote for them.
in fact it seems Trump might actually be trying to at least try to lesson the problem as we speak. we have heard that there is some sort of clause in
his Mexico trade deal about paying workers in at least some industries something like $16/hour. not that that is actually enough to aleviate the
problem in industry such as the automotive industry in which workers in the US get paid much more than that. however i see that as more a symbolic
thing, than something which will help. since of course all it will really do in the end is make Mexico much more accomodating and work to take even
more work, since even though t5hat still makes manufacturing cheaper in Mexico. the high wages
in comparison to the Mexican cost of living will
mean richer people and more taxes for the Mexican government (at least for awile until that type of pay causes their cost of living to increase to
absorb those wages).
if you really want to solve the problem you have to do one of two things. either decrease the cost of living so that wages are comparable, and thus
there is no finantual benifit to outsourceing. or build within trade agreements and taxes a way to even out those cost of living diferances. yet again
canceling the benifit of outsourcing.
with services such as telimarketing type things which are purely labor with no physical product being imported, the easiest way to deal with it is to
tax the company involved the cost diferance between wages. ie in the Philippines (which has a huge outsourced call center industry) they pay the
workers an average of 107 piso/hour (or about $2 us/hour). yet in the US the average is about $19/hour. that means that the company is saving about
$17/hour by having call center work done in the Philippines compared to in the US. so if the government taxed a company such as AT&T 17/manhour of the
outsourced service. it would no longer mean that AT&T can increase their profits by that $17/manhour by sending the work overseas. that tax
would equalize the diferance of cost of living. and thus there would be no real point for AT&T to outsorce that work. and you could use that tax money
if they don't bring the jobs back to help offset the costs like welfare and unemployment in the US that the outsourcing of those jobs creates.
when it comes to manufactured products, there should be a duty charged on the imported products that again equalizes the diferance in pay between the
export country and the US. so basically is say a cellphone costs $100 in China, but would cost $500 in the US. then you would have a duty of $400 on
the import of that cellphone. of course since it is trade
, that duty can be gotten rid of if China were to buy an equal number of the $500
cellphones to import as they are exporting. and of course any money collected could be used to pay things like welfare and unemployment costs
assosiated with those jobs making the cellphone. but a much better idea would be to use that money to reduce the cost
of products being
exported to China, thus making American products price competitive against Chinese manufactured products in China. which could get rid of that huge
trade surplus that China has over the US. ans would in the end equal more and better paying jobs in the US. because either more US products would be
made in the US for the US market. and/or more US products would sell in China. seriously people like US products all over the world, but compared to
other equal products they cost too much for most people.