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To: bentway who wrote (12647)	8/20/2003 10:32:28 AM
From: GraceZ	Respond to of 306849

Corporations will seek the cheapest labor capable of doing any needed job. This is absolutely what they should be doing. Now, and in the forseeable future, that labor is overseas. Labor intensive jobs have been moving overseas as long as I've been alive, yet we keep producing completely new jobs which are more about value add than labor intensive. There is nothing going on here that signals that particular process will come to an end except perhaps what I see as a decline in literacy in our college grads. As the jobs move overseas, middle classes will arise there. This is not a negative for us. As other nations reach labor parity with us they present less compelling labor pools. Consumer consumption, currently keeping our economy alive, comes from middle class purchasing. The consumer portion of the GDP while it is two thirds of GDP is the part of the economy that is driven it is never the driver contrary to the idiot economists that keep repeating this falsehood about the consumer driving the economy. I think it's provincial to assume only Americans can innovate and invent, and this will be our salvation. No one country has the lock on innovation. One of the biggest reasons we were able to come up with so many innovative new things in the 1980s and 1990s has to do with having a culture that doesn't punish failure severely. Failure is a necessary and integral part of innovation. If we do become less innovative it'll be because we become more risk averse. This is something that sort of happens naturally as people age and is one of the reasons that some of the greatest discoveries come from people under 25. Right now we have a huge population bulge entering late middle age and this will be a drag on the country. The fact that so many of these people are losing their comfortable jobs isn't a bad development primarily because it will force them to make big changes in their thinking and they will be forced to work longer rather than retire becoming an even bigger drag. People with a comfortable safe job don't invent, don't push to develop the next thing. In the late 90s we had too much capital chasing too few ideas, now we enter a period where we'll have good ideas going begging for capital. That is a far more constructive environment and it is the type of environment where great strides are made.