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#11
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"Aloke Prasad" wrote:
"Yousuf Khan" wrote: You'd be surprised how luxuriously you can live outside the US for a tenth of the salary in the US. I think the US cost of living is pretty much out of sync with the rest of the world. I was about to respond: Tin shack !! More like a luxurious air conditioned bungalow, company provided car, with servants doing all the cooking, cleaning, gardening etc etc. But no 10MPG SUV, I'd bet. 8) |
#12
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"Hugo Drax" wrote:
I would say 40-50 years from now all farming,manufacturing,development and buisness processing (Accounting etc...) will be sent overseas, since its cheaper and provides the companies much higher margins on the end product. You'd think that the evil businessman would figure-out that the market for his products will dry up, if people aren't making a decent wage (in the future US). Alas, the evil businessman is a selfish, short-sighted person, and figures that if he can make his big stock-option killing, he and his kids will be alright, and the rest of the country (including the guy who takes-over his gutted company) can go pound sand. |
#13
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Bitstring , from the
wonderful person chrisv said "Hugo Drax" wrote: I would say 40-50 years from now all farming,manufacturing,development and buisness processing (Accounting etc...) will be sent overseas, since its cheaper and provides the companies much higher margins on the end product. You'd think that the evil businessman would figure-out that the market for his products will dry up, if people aren't making a decent wage (in the future US). Hmm, defining 'decent' as 50x the global average, I assume? And assuming that the only market which counts is the US market? (ISTR there are more $ millionaires in Asia than in the USA) Yeah well, Usenet =is= kind of parochial that way.. Hint: the universe doesn't own =anyone= a living (although people born on top of a pool of oil, or a pile of diamond bearing ore, may have some reason for short term optimism). -- GSV Three Minds in a Can Outgoing Msgs are Turing Tested,and indistinguishable from human typing. |
#14
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"chrisv" wrote in message
... Tin shack !! More like a luxurious air conditioned bungalow, company provided car, with servants doing all the cooking, cleaning, gardening etc etc. But no 10MPG SUV, I'd bet. Actually maybe only a 15MPG SUV. Yousuf Khan |
#15
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GSV Three Minds in a Can wrote:
Heck, which other country does most of its teaching in what is, to 99% of the pupils, a second language? 8.) Well...we do! :-) Republic of Mauritius. -- Nadeem M Nayeck [ m n n a y e c k @ i n t n e t . m u ] Registered LU #290695 Key fingerprint : D8C3 DFA5 A2A8 CA60 50B9 9311 A346 612F 6EDD 68BC |
#16
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Hugo Drax wrote:
I would say 40-50 years from now all farming,manufacturing,development and buisness processing (Accounting etc...) will be sent overseas, since its cheaper and provides the companies much higher margins on the end product. I would say 40-50 years from now, salaries in India/China/Russia etc. will be a lot closer to those of the rest of the world, thus obviating much of the economic advantage in outsourcing. -- Mike Smith |
#17
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GSV Three Minds in a Can wrote:
You'd be surprised how luxuriously you can live outside the US for a tenth of the salary in the US. I think the US cost of living is pretty much out of sync with the rest of the world. That's not completely unrelated to labour costs .. when everyone from a builder to a policeman is earning 1/10th the USA rate, the cost of living is bound to be rather lower. However salaries in India have floated up pretty dramatically these last 10-15 years, and will continue to do so (at least for the educated folks .. and educated Indians are very educated indeed .. which other country teaches '19 times table' in schools? Heck, which other country does most of its teaching in what is, to 99% of the pupils, a second language? 8.) Sure the salaries have floated up in India and in that other giant, China. But they will take decades to even catch upto US salaries. And then the US salaries will have to remain stagnant for those intervening decades, before the Chinese or Indian salaries approach US ones. US salary structures didn't happen overnight, and they won't be changed overnight either. I doubt US salaries are ever going to take a tumble just to compete against these other countries. Nor is it right for US workers to take pay cuts, considering what the cost of living is in the US. If workers took a pay cut, would manufacturers also automatically lower prices? Not right away, but as their sales start tumbling then they would, but in the meantime, a lot heartache where people can't afford things they were able to afford before, and sellers losing sales that they used to make easily before. I know that there is a lot of grumbling in the US about why they should be losing jobs to overseas. Well, the reason seems to be that the overseas market is the market manufacturers are going for now. So you can't be having a high-priced US worker designing and making these products for sales to people who make a tenth of what they make. If you want to sell to China or India, then you better hire Chinese or Indians to design these things for their own people at the costs that their own people can afford. If the products that they design happen to be sold back to the US at cheaper rates, then that's only good for consumers. Yousuf Khan |
#18
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"Hugo Drax" writes: True but I think eventually all development/design will go overseas. it makes no sense to pay 16 times more for US labor when overseas is 1/16th cheaper and will afford Intel,IBM etc.. a nice margin on end product. Why stop at development/design? What prevents management from being outsourced too? Heck, what prevents the board of directors from outsourcing the CEO position? -wolfgang |
#19
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Wolfgang S. Rupprecht wrote:
"Hugo Drax" writes: True but I think eventually all development/design will go overseas. it makes no sense to pay 16 times more for US labor when overseas is 1/16th cheaper and will afford Intel,IBM etc.. a nice margin on end product. Why stop at development/design? What prevents management from being outsourced too? Heck, what prevents the board of directors from outsourcing the CEO position? Well, the CEO is a corporate officer, so that may have something to do with it. But that aside, there would be no reason not to outsource the CEO job - *if* they think they can find a capable person who'll do the job for cheap enough to make it worthwhile. *If*. -- Mike Smith |
#20
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"Yousuf Khan" wrote in message le.rogers.com... Sure the salaries have floated up in India and in that other giant, China. But they will take decades to even catch upto US salaries. And then the US salaries will have to remain stagnant for those intervening decades, before the Chinese or Indian salaries approach US ones. US salary structures didn't happen overnight, and they won't be changed overnight either. The reduction in salaries will be partially balanced out by the reduction in the cost of goods. If outsourcing reduces the labor costs of goods, it will reduce the cost of those goods. I doubt US salaries are ever going to take a tumble just to compete against these other countries. They could. I don't think it's likely, but it's certainly not impossible. More laborers will be competing on an international market rather than a national one. Nor is it right for US workers to take pay cuts, considering what the cost of living is in the US. The cost of living will go down. If workers took a pay cut, would manufacturers also automatically lower prices? No, you have the cause and effect backwards. Prices will lower for goods for the same reason they'll lower for wages -- competition in a larger economy. Not right away, but as their sales start tumbling then they would, but in the meantime, a lot heartache where people can't afford things they were able to afford before, and sellers losing sales that they used to make easily before. No, sales won't tumble, they'll grow. Cheaper labor means cheaper goods that poorer people can affort. Globalization means larger markets to sell goods into. I know that there is a lot of grumbling in the US about why they should be losing jobs to overseas. Well, the reason seems to be that the overseas market is the market manufacturers are going for now. So you can't be having a high-priced US worker designing and making these products for sales to people who make a tenth of what they make. You can, so long as the US worker's productivity corresponds to his cost. If you want to sell to China or India, then you better hire Chinese or Indians to design these things for their own people at the costs that their own people can afford. If the products that they design happen to be sold back to the US at cheaper rates, then that's only good for consumers. Good enough to compensate for wage reductions? It's hard to say. There could be a few rocky decades as the economy adjusts. DS |
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