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To: t2 who wrote (10697)6/1/2000 5:39:00 PM
From: Tunica Albuginea  Read Replies (1) of 24042
 
t2, wage pressures will subside sooner since our " call centers "
and our " service economy " is moving out to India and the Philippines
right now, than to the web, <vbg>.
(when you call Best Buy, the guy on the other end is likely to be in the Philippines ).

Soon there may be no work for our service employees!
since it is cheaper to hire in India.

In India employees to have to pay extortion level entitlements
and so obviously they can be hired more cheaply.

In fact our Medicare/Social Security system may soon price us out
of the International market!!

Then we'll have plenty of unemployed folk and Alan G. can sleep
easier.

The diagnosis ( the last 40+ years ) remains ( the same ):: Fat Government.

The treatment(the last 40+years ) remains ( the same ): Send Uncle Sam to
the fat farm.

back later,

TA, M.D.

Message #10697 from t2 at Jun 1, 2000 4:23 PM ET
I would also point out that wage pressures can subside a lot faster than they could back in the 1970s, 1980s, and even a part of the 1990s. The move to free trade worldwide will prevent increases. As corporations asses the most cost effective location for a new plant, wages will be a big part of their analysis. They will look anywhere in the world that can support their facilities. This can only cause short term wage inflation as the corporate strategists make plans for future expansion. That will create a lag.

The corporations know that they have to remain competitive on a global basis and will produce wherever they can get the best production for unit of cost.

That is the biggest factor (free trade--and HUGE developments in information technology) that will prevent inflation pressures.

Once wages and other costs elsewhere reach the same levels as developed countries, then we can get an inflation problem....and I don't see that happening for at least a decade or two.

I hope that Greenspan and company realize that the old theories that worked may not hold in this environment....and it is a different environment.

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