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To: RetiredNow who wrote (65634)	6/25/2004 1:22:32 PM
From: GVTucker	Respond to of 77400

mindmeld, RE: It's a harsh reality for those who never recover, but the long run effect is a richer and better jobs environment for Americans, as long as we can retain our competitive edge of identifying the next horizon and educating our people to lead the world to that horizon. "The truth is we are all caught in a great economic system which is heartless." --Woodrow Wilson

To: RetiredNow who wrote (65634)	6/25/2004 1:58:34 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 77400

I don't expect everyone to understand or even agree that this is how a modern capitalistic economy works. If you have no macro or micro economics training, then it's doubtful that you will ever agree that economic Darwinism is good for our economy in the long run. However, the brightest economic minds in the world (along with a few students in ages past) have come to the same conclusion Well, the problem with an "IP economy" and an IP-workforce, is that there are 2 recipients of any economic investment. One benefit is the product you are building and the other is the MIND of that engineer or whoever is building the product. Comparative advantage does not take this into account. In general, theory is lagging behind in terms of an IP economy on many levels. When Cisco or Intel outsource CHIP DESIGN to Foxconn or SLR in china, Cisco and Intel are becoming the modern day equivalent of IBMs approach to the PC industry in the early 80s, basically deluding themselves into thinking that they can hold on to an industry when they outsource the heart of it to another provider. I expect some economist will emerge in the next 20 years or so to challenge the age old comparative advantage theories for intellectual property. Of course, by that time, it will be too late and the industry will be lost to asia as far as the USA is concerned. People in the industry are watching this happen currently and most everyone realizes that this process of globalization is basically giving US industries away. It isn't like there is consensus among economists that this is a good thing, either. But that is long term. Short term, if middle class wage pressure continues, there will probably be something of a cap on stock prices, because stocks are not immune to supply and demand.

To: RetiredNow who wrote (65634)	6/25/2004 9:43:52 PM
From: Paul V.	Respond to of 77400

mindmeid, I do agree. Maybe it is that we have been indoctrinated by our MBA training. .\<gg> >I don't expect everyone to understand or even agree that this is how a modern capitalistic economy works. If you have no macro or micro economics training, then it's doubtful that you will ever agree that economic Darwinism is good for our economy in the long run.<

To: RetiredNow who wrote (65634)	6/28/2004 8:19:48 PM
From: Kirk ©	Read Replies (2) \| Respond to of 77400

Nice summary. I look at it this way. More efficient use of capital is healthy. If you can get the work done for a lower cost, then it is a good thing. The alternative is protectionaismn which leads to stagnation ... Europe ... few new drugs or ideas out of Europe these days... That is a fact and it applies to the offshoring of tech workers. It's a harsh reality for those who never recover, but the long run effect is a richer and better jobs environment for Americans, as long as we can retain our competitive edge of identifying the next horizon and educating our people to lead the world to that horizon. the trouble in the US is we have too many who want to blame others for their lack of effort PLUS they think they deserve an easy life/job just because they are Americans.

To: RetiredNow who wrote (65634)	7/1/2004 11:55:19 AM
From: Proud_Infidel	Read Replies (2) \| Respond to of 77400

However, the brightest economic minds in the world (along with a few students in ages past) have come to the same conclusion that the ability to move economic resources frictionlessly throughout the world is the best way to ensure that economies are optimized and maximum jobs growth is sustained. That is a fact and it applies to the offshoring of tech workers. It's a harsh reality for those who never recover, but the long run effect is a richer and better jobs environment for Americans, as long as we can retain our competitive edge of identifying the next horizon and educating our people to lead the world to that horizon. Your "fact" does not take into account the manufacturing jobs being lost at an unprecedented rate in this country. Can America be a country of high living standards by service jobs alone, especially when many of the service jobs themselves can be done more cheaply in India or some other country? Who is to say that the service sector will not be decimated a decade from now like the manufacturing sector has been? This is something your MBA project did not address, and is only something whose results can be seen in the rear-view mirror, a truly scary proposition. Brian