more on US firms that outsource are "Benedict Arnolds": Kerry

[Dave Farber <dave () farber net>]

Delivered-To: dfarber+ () ux13 sp cs cmu edu
Date: Sat, 07 Feb 2004 10:01:04 -0600
From: "Jon M. Powers" <powers () fogglaw com>
Subject: Re: [IP] US firms that outsource are "Benedict Arnolds": Kerry
To: Dave Farber <dave () FARBER NET>

Mr. Farber --

One thing that I have not seen analyzed very much in the off-shoring
discussions I have seen is the question of why there is so much excess
labor capacity in the countries to which US jobs are being off-shored.
Having excess labor capacity in these countries drives/keeps wages
down, even the wages of so-called high-skill jobs.

I heard the economist Robert Pollin talk about this issue on the
Progressive Radio.

(link http://www.progressive.org/radio/radioarc3.html)

He suggests that one of the root causes of excess labor in these other
countries is the role of US, EU, and Japanese ag subsidies that
artificially lower the price of ag products produced in and exported
from these countries.

When a developing country goes the IMF/World Bank free trade route and
opens up its agriculture markets, local farmers are not able to
compete with the subsidized ag exports from the US and the EU.  The
local farmers driven off the land and migrate to urban areas where
they add to the excess labor pool in those areas.

This not the result of a free market, but the result of unfair trade
and the ag subsidies.  We need to look at the overall effects of US/EU
ag policy on free-trade/globalization.

Seems to me that the farmers in the developing countries would prefer
to stay on the land and not migrate to urban areas where they add to
the labor pool.  This is probably why the developing countries are
making US/EU subsidies more of an issue in the WTO talks.

It is obvious that US workers would prefer to keep their traditional
jobs.

Lose-lose situation for everyone, except the welfare queens (US/EU ag
industry).

I think any efforts to solve the off-shoring "problem" must address
US/EU ag subsidies and their effects of driving people off the land in
other countries.

Jon Powers


On Sat, Feb 07, 2004 at 08:39:50AM -0500, Dave Farber wrote:
>
> Delivered-To: dfarber+ () ux13 sp cs cmu edu
> Date: Sat, 07 Feb 2004 10:58:42 +0530
> From: suresh () frodo hserus net (Suresh Ramasubramanian)
> Subject: US firms that outsource are "Benedict Arnolds": Kerry
> To: dave () farber net
> Cc: suresh () frodo hserus net
> Organization: -ENOENT
>
> Well now, offshoring has become an election issue, a vote gathering
> soapbox.  Imagine that.
>
>       srs
> 

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