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#1
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"Doug Kanter" wrote in message ... 1) Your data does not change the basic idea behind what Gould said. Those people are still paid a LOT less than comparable workers here. 2) Their comparable purchasing power is not relevant to this discussion. We're not talking about how bad we feel (or not) about their wages. The point is that we're stuck with lousy service because American companies are unwilling to pay what it takes to provide complete and proper support. "John Smith" wrote in message news:zVTGc.37658$MB3.18218@attbi_s04... Doug, I think you missed the point of my posts, so often rumors and incorrect data is transmitted as fact on the internet. According to the Times of India, they are on the verge of increasing the minimum wage from their current rate of Rs 64.72/hr (or approx. $1.50/hr). According to those in the Telephone Service Industry promoting outsourcing of jobs, the average wage for telephone service center operators is $2 to $3/hr which equals $4160 - $6240 annual income, well above the average income in the US, when comparing the purchasing power of their income ( $2900 in India is equal to the average income in the US.) So if you want your argument to carry weight it is best to use accurate info, instead of repeating rumors and incorrect data. "Doug Kanter" wrote in message ... "John Smith" wrote in message news:fbTGc.6642$WX.211@attbi_s51... Gould, Thanks for the suggestion, but I was hoping you would have followed up on some of the links yourself to see that they really do not pay call center employees $1 / hr. Chuck has a job. You want a secretary? Hire one. You will not pay $1000 for a 60 gig disk drive! If you would, then the manufacturers could build them here. Fully bundled labor cost in Malaysia is probably in the $3-5 range, was $1.50 in the early 1990's. So, since the consumer wants the $60 drive retail, the companies are forced to build overseas. You think that a PR guy for a union pension fund, should make $100k+? Then you can hire him, but if you could get the same thing for $20k, would it not be provident to do so for the benefit of the pensioners, and stockholders? |
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#2
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You will not pay $1000 for a 60 gig disk drive! If you would, then the
manufacturers could build them here. Fully bundled labor cost in Malaysia is probably in the $3-5 range, was $1.50 in the early 1990's. So, since the consumer wants the $60 drive retail, the companies are forced to build overseas. You think that a PR guy for a union pension fund, should make $100k+? Then you can hire him, but if you could get the same thing for $20k, would it not be provident to do so for the benefit of the pensioners, and stockholders? No, most folks wouldn't pay $1000 for a disk drive. That would amount to several days' income for a typical American. Ironically, when we build them overseas and sell them for $60, that price represents several days' income for the people that built it. The missing portion of this equation is executive compensation. UP Uranus Widgets and Gidgets, (for example), traditonally grossed $500mm per year in sales with a respectable 8% operating net of $40mm. The CEO earned $6mm per year. UP Uranus moved manufacturing from Oklahoma to Malaysia, and accounting and customer service to New Delhi. The decrease in personnel cost improved the company operating net from $40mm to $110mm, activating an "incentive" clause in the CEO's contract that increased his pay from $6mm per year to $35mm. The board of directors voted themselves fat bonuses, dividends went through the roof, and the stock price advanced sharply. The CEO, the board, and the stockholders were all delighted. Somewhat less delighted were the ex-rank and file employees of UP Uranus. Many had to rely on unemployment insurance, some were forced into an early and underfunded retirement, and others settled for "underemployed" jobs at a fraction of their former wages and lost homes, cars, savings accounts, as a result. Almost as undelighted were the taxpayers in Oklahoma. UP Uranus discovered that by forming sub corporations in Malaysia and India and registering these entities in certain Caribbean nations, there would no longer be any US federal or local sate taxes paid on the proceeds. Just when UP Uranus dumped thousands of involuntarily jobless people onto the doorstep of society, UP Uranus engineered a way to avoid participating in the social costs associated with the layoff. That's what is defined as "smart business" by many people whose god is a greenback and holy writ is last quarter's financial statement. What the hell, let the common people eat cake. If they get too desperate, they can sell one of their Lexus......(surely every family has at least a couple of those, right?) BUT.....we haven't finsihed casting all the villains in this little scenario. Throw in another 200 million adults of consuming age and blind them all to any portion of a purchase decision except price. Have them shop in a business that is so powerful it collects almost 10-cents out of every retail dollar spent in the US, and have that business inform its competing suppliers that it *expects* them to offshore as many jobs and reduce costs as much as possible so that the company's 200-million customers can buy a new toaster for $10, or a microwave oven for $39. Winners: The very rich and the very poor. (Most of the very poor being overseas). Middle class consumers but only to a point. (Higher unemployment and greater underemployment depresses wages for all, meaing that it takes as long or longer to earn that $39 microwave as it did when the appliance cost a bit more). Losers: The middle class overall. Skilled labor, white collar professionals, and tax revenues. (Sales tax doesn't diminish much when the companies reorganize offshore, so the portion of the tax burden paid by the consumer, rather than the corporations, remains relatively high. Transfers the tax burden to the little people). Is this a "good" thing or a "bad" thing? That's up to everybody to decide based on individual values and perspectives. No doubt about it, however, it is a common scenario in contemporary times. |
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#3
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"Gould 0738" wrote in message ... You will not pay $1000 for a 60 gig disk drive! If you would, then the manufacturers could build them here. Fully bundled labor cost in Malaysia is probably in the $3-5 range, was $1.50 in the early 1990's. So, since the consumer wants the $60 drive retail, the companies are forced to build overseas. You think that a PR guy for a union pension fund, should make $100k+? Then you can hire him, but if you could get the same thing for $20k, would it not be provident to do so for the benefit of the pensioners, and stockholders? No, most folks wouldn't pay $1000 for a disk drive. That would amount to several days' income for a typical American. Ironically, when we build them overseas and sell them for $60, that price represents several days' income for the people that built it. The missing portion of this equation is executive compensation. UP Uranus Widgets and Gidgets, (for example), traditonally grossed $500mm per year in sales with a respectable 8% operating net of $40mm. The CEO earned $6mm per year. UP Uranus moved manufacturing from Oklahoma to Malaysia, and accounting and customer service to New Delhi. The decrease in personnel cost improved the company operating net from $40mm to $110mm, activating an "incentive" clause in the CEO's contract that increased his pay from $6mm per year to $35mm. The board of directors voted themselves fat bonuses, dividends went through the roof, and the stock price advanced sharply. The CEO, the board, and the stockholders were all delighted. Somewhat less delighted were the ex-rank and file employees of UP Uranus. Many had to rely on unemployment insurance, some were forced into an early and underfunded retirement, and others settled for "underemployed" jobs at a fraction of their former wages and lost homes, cars, savings accounts, as a result. Almost as undelighted were the taxpayers in Oklahoma. UP Uranus discovered that by forming sub corporations in Malaysia and India and registering these entities in certain Caribbean nations, there would no longer be any US federal or local sate taxes paid on the proceeds. Just when UP Uranus dumped thousands of involuntarily jobless people onto the doorstep of society, UP Uranus engineered a way to avoid participating in the social costs associated with the layoff. That's what is defined as "smart business" by many people whose god is a greenback and holy writ is last quarter's financial statement. What the hell, let the common people eat cake. If they get too desperate, they can sell one of their Lexus......(surely every family has at least a couple of those, right?) BUT.....we haven't finsihed casting all the villains in this little scenario. Throw in another 200 million adults of consuming age and blind them all to any portion of a purchase decision except price. Have them shop in a business that is so powerful it collects almost 10-cents out of every retail dollar spent in the US, and have that business inform its competing suppliers that it *expects* them to offshore as many jobs and reduce costs as much as possible so that the company's 200-million customers can buy a new toaster for $10, or a microwave oven for $39. Winners: The very rich and the very poor. (Most of the very poor being overseas). Middle class consumers but only to a point. (Higher unemployment and greater underemployment depresses wages for all, meaing that it takes as long or longer to earn that $39 microwave as it did when the appliance cost a bit more). Losers: The middle class overall. Skilled labor, white collar professionals, and tax revenues. (Sales tax doesn't diminish much when the companies reorganize offshore, so the portion of the tax burden paid by the consumer, rather than the corporations, remains relatively high. Transfers the tax burden to the little people). Is this a "good" thing or a "bad" thing? That's up to everybody to decide based on individual values and perspectives. No doubt about it, however, it is a common scenario in contemporary times. Part of the problem has been the astronomical inflation of wages in the USA in the last 25 years. Middle class wages. 1980 a good engineering job paid about $23k a year. A car cost $2-4K and the burger flipper was making $2 an hour. Now the burger flipper is making $9 an hour and the employed engineer is making $100k a year for the same position and the same car is $25-40k. What is that inflation wise? About 10% a year. A lot brought on by the overspending of the government giving away lots of money to the downtrodden. War on Poverty. Did we win the war? Still people complaining about the downtrodden. Look at the Carter Presidential years. 17%+ inflation. We have priced ourselves out of the market in a lot of areas. The rust belt, had huge unemployment because of a couple of reasons. Iron ore ran short, and the foundries did not upgrade to produce steel with scrap and some ore more efficently. And the labor unions forced huge wage increases via strikes. Sure, it is nice to be a high school dropout, or even a graduate and earn $80k a year. average public traded companies CEO's in 1962 made about $130k. 10x the average workers salary. Now same CEO's are making $1mm. maybe 15x the average workers salary. Sure, there are the Martha Stewarts, et al. But a small percentage of the CEO's. And we probably had a similar % ripping off the stockholders in 1964. We are in for hard times, but maybe we come back into line with the rest of the world in terms of pay. |
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#4
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#5
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Chuck, you've outlined the case very well, and it is indeed a problem.
So what do we do about it? The very first step has to be a huge reduction in government spending. Each subsequent administration spends money even faster that the previous. Until recently, each side had an excuse that the "other side" controlled either the Executive Branch or Congress. Now that one party controls both, spending is out of control like never before. We're borrowing almost $2 billion a day just to keep up with it. (to put that in perspective, every six weeks we're borrowing as much money as congress appropriated last year to continue the war in Iraq!) If we are going to reduce wages in the US, and it seems that we must in order to compete with the third world, that money that remains in a worker's paycheck has to count for something. High interest rates (to support the government deficit) and high taxes collected either at the time the spending is occurring or "postponed" until another party is in power to absorb the political heat take far too much of the disposable income from the average worker. To say that taxes are the only problem, and that tax cuts without spending cuts will solve it, is silly. Every dime of the deficit is a deferred taxation, we just haven't scheduled the collection yet. Just like $3mm a month CEO salaries, there is a lot of waste in the government. Cutting out the waste would reduce the cost of government while leaving basic services in tact. Second step is to tax exported capital. You want to send $1 billion US to East Overshirt to build a factory that will put 35,000 Americans out of work? No problem, but we do have a bit of a tax you need to pay to cover the social costs associated with your private profiteering. It just might be so high that you'll think twice about moving the factory.......... Third step is to progressively eliminate social security, and the associated taxation. It's too late to tell people in their 60's to start saving for retirement because there isn't going to be any social security. But it might not be too late to tell those 55-60 that their benefits will be only 95% of what they expect. Those 50-55 will have to save enought to cover 10%. Ages 40-50 will get only 80%, ages 30-40 only 60% (they have more decades to compound interest on savings), ages 20-30 only 30%, and kids just starting off......zero. When Uncle Harry or Aunt Georgia spends every dime they ever earn and can't pay the rent in their "golden years" they better hope the relatives will take them in. There might ge a middle ground on Social Security. Nobody should be without minimal and safe shelter or susbsistence food, and nobody should have to die simply because medical treatment for an illness in unaffordable. However, if able bodied and mentally alert people want to take the last few decades of life "off" and not have to work for a living, it should be up to them as individuals to arrange for that rather than up to all of us as a society to guarantee it. |
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#6
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#7
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"Dave Hall" wrote in message
... On 09 Jul 2004 16:16:46 GMT, (Gould 0738) wrote: Chuck, you've outlined the case very well, and it is indeed a problem. So what do we do about it? The very first step has to be a huge reduction in government spending. Then can I count on your support for republican congress people, who have historically been more inclined to cut government spending? The ones who wrote a blank check to a monkey for a war whose goal could've been met for under five hundred dollars a year by simply getting your president a prescription for Viagra? Those Republican congress people? |
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#8
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Then can I count on your support for republican congress people, who
have historically been more inclined to cut government spending? There is no correlation between party affiliation and irresponsible spending. With a gop in the WH and gops controlling Congress, we *should* be running a tight ship right now. Alas: http://www.brillig.com/debt_clock/ (here's where you come back with a retort about how it's really Clinton's fault) The last administration managed to find a budget surplus, mostly due to the efforts of the republicans in congress, who took great efforts to cut spending. So, what happened? Without an opposing party Executive, the Republican Congress has gone on a *wild* spending spree. We are in a special circumstance. We're at war. Most of that spending is toward the war effort. Once the war is over, things will settle down again. Nonsense. Anybody can look up the current federal budget and see that only a small portion of our current super-expenditures are directly related to the invasion of Iraq. Has Bush vetoed a single spending bill, yet? (As of very recently he had not.) Now here it gets a bit more confusing............... I remarked: High interest rates (to support the government deficit) and high taxes collected either at the time the spending is occurring or "postponed" until another party is in power to absorb the political heat take far too much of the disposable income from the average worker. and you replied: Hear hear!!! Was that because you failed to recognize the fiscal (phony tax cut) policy of the Bush Administration expressed in such simple terms, or because you don't support it? .......... Are you sure you're really a liberal Chuck? Those sound awfully close to conservative ideas. ;-) Dave It's a curve, not a straight line. When you get far enough out to the left you do begin to catch a glimpse of some of those folks on the extreme right, they're just coming around the same circle from the other direction. We extremists all have a common desire- we want the boot of government off our neck. Many of the righties would then hope to create a Norman Rockwell conformist religious utopia, while more of the lefties would rejoice in a new era of personal intellectual freedom and self sufficiency. |
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#9
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How is that different from an import tariff, as far as net effect?
It's putting up a fight vs. meek capitulation. "Oh well, it's inevitable. Might as well see our billioinaires become zillionaires as a result, though" |
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