I consider myself to be an innovation driven idealist who supports the fundamental ideals of capitalism: lower costs to consumers, technological achievement, and economic growth. Most of my political stances against some of the corporate abuses I see in this country (and the world) is due to the fact that the style capitalism that we have has many counteracting forces to the ideals that I believe in.
Today on C-Span, an economist testifying before a Senate Committee asked an interesting question and raised a topic that I have not heard about. The primary (and possibly only) reason manufacturing jobs are being exported to other countries is cheap labor. As a business decision, this would seem to be advantageous from a cost-effictiveness standpoint. Why pay Americans the standard factory wages that unions have fought for when they can pay people (and children) in other countries far less? Certainly capitalism's goal is to lower costs to consumers. But, if companies kept jobs in America, would it be possible that there would be some sort of technological innovation to increase productivity to the point where relocating manufacturing to other countries would not be the most attractive and profitable business decision? Surely pure capitalists must agree that capitalism fuels invention and innovation. Capitalism in America fueled the industrial revolution where productivity and efficiency grew to extraordinary levels as mass production and other systematic innovations decreased costs on such a massive scale that America not only won the greatest conflict the world has ever seen, but not only became the economic hyperpower it is today.
So... does shipping jobs to cheaper labor markets (that are often manipulated in Socialist fashions) inhibit technological and systematic innovation with regards to manufacturing? And in addition, doesn't the weakening of America's manufacturing sectors weaken America in the long run?
One last question to add to this discussion. American corporations now consider themselves global enterprises and relocate their "corporate addresses" to friendly tax havens, but yet enjoy the protection of the American military and the backing of the American people. Historically, there has been an enormous amount of pride and confidence in "MADE IN AMERICA". Has this rush to the bottom in terms of labor costs taken hurt the American psyche? Does this hurt American pride overall?
I want to see Americans creating wealth for themselves. I want to see Americans working. I want to be proud of the products I buy. And lastly, I don't want to contribute to the human rights abuses that take place in the countries that corporations move to in order to make a few more bucks.
Discuss
Today on C-Span, an economist testifying before a Senate Committee asked an interesting question and raised a topic that I have not heard about. The primary (and possibly only) reason manufacturing jobs are being exported to other countries is cheap labor. As a business decision, this would seem to be advantageous from a cost-effictiveness standpoint. Why pay Americans the standard factory wages that unions have fought for when they can pay people (and children) in other countries far less? Certainly capitalism's goal is to lower costs to consumers. But, if companies kept jobs in America, would it be possible that there would be some sort of technological innovation to increase productivity to the point where relocating manufacturing to other countries would not be the most attractive and profitable business decision? Surely pure capitalists must agree that capitalism fuels invention and innovation. Capitalism in America fueled the industrial revolution where productivity and efficiency grew to extraordinary levels as mass production and other systematic innovations decreased costs on such a massive scale that America not only won the greatest conflict the world has ever seen, but not only became the economic hyperpower it is today.
So... does shipping jobs to cheaper labor markets (that are often manipulated in Socialist fashions) inhibit technological and systematic innovation with regards to manufacturing? And in addition, doesn't the weakening of America's manufacturing sectors weaken America in the long run?
One last question to add to this discussion. American corporations now consider themselves global enterprises and relocate their "corporate addresses" to friendly tax havens, but yet enjoy the protection of the American military and the backing of the American people. Historically, there has been an enormous amount of pride and confidence in "MADE IN AMERICA". Has this rush to the bottom in terms of labor costs taken hurt the American psyche? Does this hurt American pride overall?
I want to see Americans creating wealth for themselves. I want to see Americans working. I want to be proud of the products I buy. And lastly, I don't want to contribute to the human rights abuses that take place in the countries that corporations move to in order to make a few more bucks.
Discuss
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