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Our large scale injection of cash and capitalism into China, via outsourcing, has had an undeniable effect in democratizing that nation as well as raising the standard of living of a significant portion of their population.
I don't see China as a military threat in the near term although they are increasing their military budget, including their carrier and submarine fleets.
On the other hand, outsourcing to China has massively strengthened a nuclear armed communist country. They have a contentious relationship with our ally, Taiwan.
If the same amount of the outsourcing had been directed toward Mexico, the standard of living of her citizens would have been raised, removing a major incentive to illegally seek work in the U.S. In the best case scenario, Mexico could have become a Spanish speaking Canada to the South (I realize Mexico has significant societal and governmental problems).
If outsourcing was inevitable, it seems strategically more prudent to strengthen a non-nuclear democratic neighbor with no military ambitions than a nuclear superpower with a non-democratic government. And we might solve the illegal immigration problem in the bargain.
Was the choice of China over Mexico strictly an economic one (cheaper labor--although shipping has got to be way more expensive) or was there a political reason as well? Short term tactical gain vs. a long term strategy?
I don't want this to spin off into an immigration thread; I just mentioned it as a possible beneficial side effect.
I'd also like to keep the conversation away from the pros and cons of outsourcing.
The Chinese deliberately manipulate their currency making it a better deal to do business over there. Plus, there are just so many damn people ready to work in sweat shops for pennies. And they also have better infrastructure and government investment.
The Chinese deliberately manipulate their currency making it a better deal to do business over there. Plus, there are just so many damn people ready to work in sweat shops for pennies. And they also have better infrastructure and government investment.
^ there's your answer.
the 'giant sucking sound' of US jobs moving to mexico was echoed just a few short years later by those same jobs moving from mexico to china.
I just read an article the other day. China is decreasing the size of their military. Though it is getting stronger. (weapons systems are getting better)
Companies are heading to China because everyday China is throwing out workplace laws. Salaries usually only account for 7-10 % of a companies budget. U.S. Governement regulation and taxation account for 50% on average.
In China companies have no EPA, Social Security, OSHA, Workers comp, EEO and all these unecessary burdens that cost them money to deal with. Unions are illegal. No wonder comapnies are leaving. No cap and trade either.
I bet they would come back if we eased up on some of the stupid crap we make companies deal with here.
Interesting enough if you look at history you will see that the smaller a government is the stronger the military is. The bigger and more powerful a govt is the weaker the military is.
Makes me wonder when every time I turn on the TV some politician is proposing some new workplace law to make everything "fair" what we are really doing to ourselves. Sending alll our jobs overseas and making our military weaker. Not a good idea.
Our large scale injection of cash and capitalism into China, via outsourcing, has had an undeniable effect in democratizing that nation as well as raising the standard of living of a significant portion of their population.
I don't see China as a military threat in the near term although they are increasing their military budget, including their carrier and submarine fleets.
On the other hand, outsourcing to China has massively strengthened a nuclear armed communist country. They have a contentious relationship with our ally, Taiwan.
If the same amount of the outsourcing had been directed toward Mexico, the standard of living of her citizens would have been raised, removing a major incentive to illegally seek work in the U.S. In the best case scenario, Mexico could have become a Spanish speaking Canada to the South (I realize Mexico has significant societal and governmental problems).
If outsourcing was inevitable, it seems strategically more prudent to strengthen a non-nuclear democratic neighbor with no military ambitions than a nuclear superpower with a non-democratic government. And we might solve the illegal immigration problem in the bargain.
Was the choice of China over Mexico strictly an economic one (cheaper labor--although shipping has got to be way more expensive) or was there a political reason as well? Short term tactical gain vs. a long term strategy?
I don't want this to spin off into an immigration thread; I just mentioned it as a possible beneficial side effect.
I'd also like to keep the conversation away from the pros and cons of outsourcing.
You make some excellent points. One day we may find ourselves sorry for putting all eggs in China's basket!
Here are some things that might answer your question:
1) The US doesn't have a clear policy to encourage outsourcing to China. It just happened because the private sector (as you can see in other instances) is like a flock of sheep. Once a few large trendsetters moved their manufacturing to China, the others just followed.
2) Being a communist country, China decided to make a coordinated effort to attract foreigners. Its easier when you are a dictatorship.
3) As part of their national effort, China offered the manufacturing infrastructure that Mexico didn't.
4) The Chinese traditional discipline which Mexicans lack.
Our large scale injection of cash and capitalism into China, via outsourcing, has had an undeniable effect in democratizing that nation
- Capitalism doesn't spread democracy (read the definition of democracy and capitalism)
Why China instead of Mexico?
(1) Biggest market in the World controlled by a communist government (1 person controls everything) proving that demand (1 billion people) is what drives a market and not supply.
In few words,
China is the republicans dream of what they want the United States to become (cheap labor, no labor laws, no environmental laws, etc, etc)
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