To: Lazarus_Long who wrote (566242 ) 4/17/2004 7:54:32 PM From: Kenneth V. McNutt Read Replies (2) | Respond to of 769667 There is only one group reponsible for outsourcing. We, The American citizen. (My original statement.) Your questions #1 Not that simple. Say you and I are in the same business. I outsource my HR to India and cut costs by half. Then I cut prices and still make more money than before. What will you do? #2 I'm a taxpayer. I want to pay the least amount of tax possible. The gov't (city, county, state, federal) can cut costs by outsourcing. So it does to satisfy me. #3 I'm an American company and I've decided I won't outsource. But by major competitor is French and operates under no such restriction. Should I just let them take my international markets? MY Answers #1 As a business man I have three basic choices. (1)Go to my customers and tell them my prices are twice as high as yours , but I don't out source, and I hope you will continue to patronize my company. (2) Attempt to compete by following your actions, or (3) go out of business, causing all of my employees to lose their jobs. Remember. I am dealing with US citizens, whether individuals, Wal-Mart or GE, or any other corporation. If they decide to patronize your company then they have made my decision. Compete, or die. #2 I don't know if it satisfies you or not. I have no basis of information on your feelings. I, myself, would have to consider each incident separately, considering the effects on local employment, and, or quality of product or service, and the existing tax burden #3 You have made the wrong decision, if you are in international competition. You must out source or no longer be competitive, and your company would be out of business, or you would be out of a job. Your question #3 gives us the answer to question #1. The one law I remember concerning outsourcing, or purchasing from other countries, was named the Smoot-Hawley(sp) Act of 1928(?) which applied such tariffs as to make it unrealistic to purchase foreign made goods. It brought on the greatest depression in history. Actually, there were two depressions in the 30's, which only ended because of WW2. As we began to come out of the '29 crash in the mid 30's taxes were raised, again, by FDR, to continue his socialistic agenda(NEW DEAL), and the country fell immediately back into depression. All the above as opinions of a former small businessman, whose business was eliminated by outsourcing, because my customers purchased the products resulting from outsourcing, but as a smaller business, without the necessary capital, I was unable to compete. My customers were the American people. They wanted price, which I was unable to offer, so my business did not survive, but other, larger businesses took it's place and life went on and the consumer was satisfied. Fortunately, my business survived long enough to allow me a part of the American dream. Individualism, and prosperity. No regrets. Tinker, tailor, buggy-whip maker. All gone. Life goes on. What you are hearing today about out sourcing is all political demagoguery. After the votes are counted it will be forgotten, until the next election. KM