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IS MICROSOFT NEXT ?

Getting back to the original topic of the thread......

Bottom Line up Front.....U.S. Companies outsource because products can be produced off-shore for less cost than they can be produced at home. This is largely because the costs of transport have dropped significantly over the last 40 years.

This is due to a number of reasons:

  • Transition to the SeaLand Van concept.
  • Inexpensive fuels.
  • Efficient and standardized business models.
  • Vastly improved communications and information technology.
  • Collapse of the Soviet Union.
Also, I would add that despite various regional conflicts, the world has essentially been at peace for some 60 years so there has been no major disruption of trade.

Previously, transport costs were THE cost in production and importation....they no longer are. Going offshore doesn't make U.S. Companies "greedy", it makes them smart.

The impact of course is that U.S. Labor cannot compete in the near term with off shore labor production of many basic goods. The union versus management dynamic is always an interesting discussion, but this situation would exist regardless.

However, this changes regards certain products and services that the U.S. excels at. No one in Sumatra is going to develop the next cutting edge chip that will power the world, or the next major upgrade in avionics that revolutionizes how aircraft fly, or the next level of Global Positioning that creates an entire new industry. Those things will occur in the West (for the near term). Folks in Sumatra are going to crank those babies our AFTER the technology is developed.

And we will buy them because our flight simulators won't run without them, and for some reason, we want them to cost as little as possible. I submit that doesn't make us "greedy" either.
 
Of course we have no choice BUT to pay tax's..For close to half of Americans do NOT pay tax's,like 47%....it was ironic to note during some choosing of high officials in government ,also do not pay there tax's...The very people to run our tax structure did not pay their tax's....yet these tax cheats today enjoy tremendous power as to how our tax's are collected.......Unfortuntly the hidden tax's are increasing...in your local food market,and every purchase we make!...the proposed energy tax looms ahead,.. as we all know .......The Concept of the "Flat Tax " is often mentioned!

The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. ~Ronald Reagan
 
The reason companies offshore their offices is to avoid or lower their tax obligations. Note, these savings are not passed onto the consumer, but rather to the shareholders. Goods remain the same price. Their tax obligations (that were once collected but are now gone) are then passed off to the people, as there has to be X amount of dollars in the coffers to accomplish the things that taxes are meant for. In other words, because these companies are not paying taxes or lesser taxes, it is up to the rest of us to pay the share they WERE paying. When one pays less tax, other must pay more to make up for it. If I could only figure out how to offshore my household and still stay here and reap the benefits of paying no or lower taxes, it would be great! :) I could afford more payware!! ;)

Don
 
It is not my intention to accuse or insult anybody. I just tried to make the readers realise we are all part of the problem. Many things are driven by the fact we all want more.

However at least once every day we should realise what we have and think about the fact there are people in this world who have less water per week than the amount I flush trough the toilet each time I go there.

How do you explain to somebody in Somalia what an ambulance for animals is.......

But I'm the first to admit that I'm greedy as well and it is even getting worse! In 1981 I bought my first car. No power steering and the heating consisted of nothing more that a large valve via which you could divert the hot air from the radiator to the interior of the car.
In 2000 I bought my first car with power steering and although I had driven for many year without it I was immediately convinced I could drive a car without it any more. In 2004 I bought my first car with air conditioning. I'm convinced I cannot longer drive a car without it!

I own 4 bicycles.... how may can I ride at the same time.....

Every time a new model or scenery for FSX is released I'm convinced I should have it!

Spending money keeps our economy alive. That's why I don't feel guilty ;)

However at least once a day......

Cheers,
Huub
 
Rami, I am also from Massachusetts and I am not going to throw in my $.02 because I might get banned for what I'd like to say about politicians and corparations and unions. But let me say this, I Salute you Sir, and Massachusetts and the whole country needs more people of your caliber.

S! Rip
 
Ripcord13 said:
Rami, I am also from Massachusetts and I am not going to throw in my $.02 because I might get banned for what I'd like to say about politicians and corparations and unions. But let me say this, I Salute you Sir, and Massachusetts and the whole country needs more people of your caliber.

S! Rip
Click to expand...

And not just your country!
 
I agree with most of what's been said. Unions were created by a need to protect worker rights however, they became a bigger problem. For example:

1. How can someone get paid $17/hour to sweep floors - the union
2. The premise of the union is that everyone is equal - they are not - the good workers can't get promoted because of senority.
3. The non-union workers usually get crapped upon because they have no representation.
4. Look at the maritime industry. Very few ships are US registered because you have to have union crews that cost way to much.

...and don't let me get started on lawyers!
 
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