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Wednesday, 25 February 2004
Paying Protection Money
A friend writes to chastise me for my remarks on the whole outsourcing problem, but he doesn't acknowledge the fact that our economy is becoming more and more dynamic. Nobody's getting gold watches anymore for putting in 35 years with the tool and die shop downtown, you know. Our generation (i.e., 30-somethings) are going to go through more and different kinds of jobs than our grandfathers did. That may suck, but it also presents us with the promise of better pay if we make the effort to become more marketable. Or, if we move out to where the jobs are.

The guy with the master's who lost his job to an IT worker in India is going to go through a crisis for a while, but he is free to ply his skills elsewhere. For less pay? Maybe for now, but it isn't necessarily going to be that way forever. And he and we are going to ride that rollercoaster until the end because we live in a free-market system (by and large).

Now, consider the alternative: a system where jobs are guaranteed and prices are artifically controlled and payroll taxes are far larger. That's a socialist system and nobody wants it. Maybe they do, theoretically, but, in practice? Who wants to double his taxes just to prop up people who won't work? Who wants to go through school to become a highly-skilled professional just to see his earning power stunted by the all-powerful state?

The idea, Helios, is to have babies so that, when you and your wife are old, the kids can take care of you. There. That's a responsible solution.


Posted by Toby Petzold at 11:25 PM CST | Post Comment | View Comments (2) | Permalink
Updated: Thursday, 26 February 2004 10:53 PM CST

Friday, 27 February 2004 - 10:25 PM CST

Name: sluggo

I love reading your blog. Let me just say that up front. You have some skillz and some opinions that stand out.

Just for the sake of rambling. The choice between laissez faire capitalism and welfare state socialism is no real choice. In the real world, it is not an either/or choice. There are shades of gray here.

One thing nobody is talking about is that the company who outsourced something to India may very well have gotten some incentives and subsidies from the local and federal governments (paid for in part by the guy who just got laid off from them.). Nobody has talked seriously about yanking all subsidies and "corporate welfare" from businesses who do that. Also, no government contract should be awarded to a company that does this.

The company in question is seeking short-term profits against the future health of their company.

One other thing that nobody is talking about is the fact that the companies who have outsourced the work to a place like china or india suddenly start to have all sorts of licensing,counterfeiting, and outright theft of customer lists and source technologies. Those low-cost workers can very suddenly become your difficult competitors.

Saturday, 28 February 2004 - 9:08 PM CST

Name: Toby Petzold

Thanks for the kind words. And you make some excellent points. It's true that we have many semi-socialist programs to keep unregulated capitalist enterprise from reducing us to serfdom ---and I'm fine with that; we must have some brakes on that steamroller. But, if what this economy and culture have to do to stay strong is to reconceive themselves, then that's what will have to happen.

Not incidentally, one of the reasons why the evil GWB pulled our plug on Kyoto (that is, after following the trend begun in the Clinton years when the United States Senate rejected ratification by a 99-to-1 vote) is that it failed to hold India and China to the same industrial-output standards that we were going to have to follow. That's about a bunch of @#%$!, but don't wait on an @#%$! Democrat to tell you that. And this dovetails into your point about the theft and appropriations going on in China's black market of American goods. They're taking our ass to the cleaners around the clock. Yeah, we should get into another round of protocols, but one that gives us some leverage against nascent capitialist economies that are taking all of our stuff with impunity.

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