[ale] Bad business

[Ricardo Davis]

At 10:56 PM -0500 1/31/03, Geoffrey wrote:
>Robert Heaven wrote:
>>
>>The problem is, you're looking at the long view... The greedy corporate
>>executives can't see that far ahead. The only thing they are concerned
>>about is the short term impacts on their balance sheets. (aka, their
>>stock options)
>
>Actually, it's the longer view that is needed, if we can hold off 
>till then.  Once things equalize, and they will, folks in the 
>states, India and China will see pay equality.  Folks in the states 
>will lose as their income either goes away, or drops substantially. 
>The overseas folks will begin to see the light, and start demanding 
>more pay, as they now are the only game, since the stateside folks 
>have gone the way of the union worker.
>

Geoffrey, I think you're being a bit simplistic regarding 
equalization.  You must take into consideration the current 
governmental frameworks of these nations, taxing structure (and 
compliance), etc.  Here's how I see the current trends playing out.

Scenario 1:  economic parity will be achieved through transition from 
individual sovereignty of nations to a global system of governance. 
Anyone who is familiar with the workings of the United Nations knows 
that this is one of their primary objectives.  The European Union, 
NAFTA, etc. are regional frameworks of governance that are simply 
transitional in purpose.  Unfortunately, a number of leaders in the 
multinational corporations subscribe to this vision.  If the current 
trends continue, this could be a reality within our children's 
lifetime.

Scenario 2:  the nations now benefiting from transfer of capital 
invest in further building their education and R&D capability.  They 
also keep the cost of doing business low by resisting over-regulation 
and burdensome taxation.  They resist the new world order crowd and 
keep deep globalization at bay.  American politicians (and the web of 
interests that keep them in place) continue as if nothing is 
happening...until the average family is spending over 75% of their 
income in paying various taxes (federal, state and local).  Then the 
revolution begins ... and the Department of Homeland Security kicks 
into high gear.  :(


-Ricardo
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