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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Sampat Saraf who wrote (10327)	6/10/2004 2:59:16 PM
From: Robert Douglas	Respond to of 25522

Excellent post. I, personnaly, can't predict what new field will generate the jobs needed to employ the dislocated workers That is always the case. You never know what industries will spring up but without out the "destruction" side of creative destruction, the process fails. Historically, the strength of the U.S. has been its ability to shift and adapt. Other countries lack this flexibility and cannot take advantage of new opportunities. Protectionism always seems like a good idea at the time, but always proves to be the wrong course.

To: Sampat Saraf who wrote (10327)	6/10/2004 8:22:26 PM
From: Cary Salsberg	Read Replies (6) \| Respond to of 25522

1. I couldn't tell if the hourly wage data you referred to was adjusted for inflation. I don't believe it was because real wages haven't done that well. 2. The aricle in Money indicated that the statistics were incomplete. 3. I don't think software has been "commoditized". It is moving to highly skilled labor in low wage rate countries. 4. US GDP has been rising. This time, it has taken very strong shots of monetary and fiscal policy to get the economy to start moving up. The outsourcing trend is fairly new, but it is accelerating. The model for what will eventually happen to white collar jobs is what happened to blue collar jobs. No new manufacturing industries arose to replace the lost manufacturing jobs. The same thing will happen to white collar jobs as long as there is alternative highly skilled lower cost labor. It doesn't hurt if the labor is located in huge, rapidly growing economies and markets. 5. If you consider "outsourcing" a continuation of the process that exported US manufacturing, then you can't help but "see how US absolute standards have declined due to outsourcing". US families have more, less expensive electronics, but many fewer have health care.