[IP] Maybe there's no mystery after all
-----Original Message-----
From: Peter G Capek <capek@xxxxxxxxxx>
Date: Mon, 05 Jan 2004 23:09:13
To:dave@xxxxxxxxxx
Subject: Re: [IP] Maybe there's no mystery after all
A propos of the offshoring issue...
I think a recent letter in the NY Times summarized it well: Would we
rather live in a country where everything is 10% cheaper, or where most people
are employed? I believe it
ultimately is pretty much that simple. Jobs which are offshored, whether
manufacturing, call center, or technology
related, don't create a multiplier effect as the earnings are spent in this
country, don't pay taxes in this country, and,
of course, don't generally adhere to the safety and human rights standards
which we believe are important.
Even if the difference were 50% cheaper (it's not!), it still seems to me an
easy decision. Unfortunately, the nature of the
competitive system is such that, once one business in an industry has proceeded
this way, it's difficult for the others
not to follow in order to compete. Indeed, doesn't the fiduciary
responsibility of a (publicly held) company require it to
behave so as to maximize the return on its investors capital, consists with the
company's bylaws? When the decision is,
say, between building a new plant or advertising a current product, there's
room for a lot of opinions in making the decision.
But when the issue is as (apparently) straightforward as paying $X/hour or
paying 15 or 20% of that amount, as the business
manager, I won't be concerned with the secondary issues of taxes, multipliers,
employment and so on. Those won't have
effect until at least next quarter.
Peter Capek
Peter G. Capek
IBM Thomas J. Watson Research Center
Yorktown Heights, NY 10598-0218
(+1 914) 945-1250 IBM Tieline: 8-862-1250 Fax: X 4426
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