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To: E_K_S who wrote (59416)	3/11/2004 1:33:32 AM
From: Lizzie Tudor	Respond to of 64865

Hi Eric, yeah I have seen Chris Larsen from e-loan on various financial shows so I know about the e-loan situation. This is a complicated matter but the problem is, I don't think it matters much to me about what "leads to greater inefficiencies" at this point. If we weren't in the economic soup we are in then I might care but right now I want to get the economy, deficit and trade deficit back on track so the fact that E-loan gets greater efficiency from offshoring I consider to be secondary. In truth the most efficient use of capital is probably to have NO jobs here in the US except 3 executives anyway. Unfortunately hiring expensive US labor is just a cost of doing business here in my view. Remember what Larsen says, the 24 hour clock makes processing faster... well guess what he can hire a graveyard shift here too right? As for what to do about outsourcing, I would get a good trade team and treat offshoring service jobs just like importing products. For example if the US doesn't have a valid trade agreement set up, don't allow offshoring there. Right now companies are offshoring to prisons in mongolia it seems like, its amazing, we need to put a stop to this. Then make jobs count in the trade deficit/surplus calculations, we need to track this. Buying labor in China with US dollars is the same as buying imported goods, if those goods are being produced for the US market. This way if a trade violation occurs, the companies that are offshoring are liable for tariffs on those salaries of the offshore workers. Some stuff like personal records needs to be outlawed from offshoring, and I support all those John Kerry disclosure laws. In the end if we still have huge service sector labor deficits with China we will have to put a stop to it just like when Reagan tariffed foreign cars from the US markets forcing them to manufacture here. I really think the notion of offshore workers being subject to tariffs or fines based on trade policy, which is kindof a touchy area anyway, might make US companies leery about hiring key personnel offshore.