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To: Lizzie Tudor who wrote (16746)	2/5/2004 3:09:13 PM
From: gpowell	Read Replies (1) \| Respond to of 306849

I am making an assumption that in the long-run outsourcing increases productivity - that is the intent of the activity. We can both, I am sure, point to numerous examples of poor outsourcing decisions. Most groups are inefficient in the short-run, be they in government or private markets. Thus, many mistakes will be made, including outsourcing decisions, but while market mistakes are punished and will necessarily self-correct, government mistakes tend to persist. The increased gains are coming in the way of profits for HP and Dell who partake in this practice, but as Les has posted US corporate income tax is at a 30 year low so no real benefit to taxpayers for increased profits. Earlier in this thread, you said this: I agree capital gains should be zero Message 19335021 Capital is stored labor – therefore, economic profit implies additional labor units will be employed in the future – as long as capitalists are still interested in making money.