ron2
Posted : 5/7/2006 8:17:59 AM
It really irks me when people who don't understand world economics just assume that Americans are "taking advantage" of foreign workers and cheating them.
Irking, it's what I'm good at.
I understand your point, wherein a company can pay offshore labor that is less than our labor price and still have those workers well-paid. Let me further show my misunderstanding of world economics by pointing out that some of these countries that we outsource to don't have the tax structure that we do.
Here, in Texas, where we are all raised to not understand world economics, several companies "outsource" by hiriing illegal immigrants. These guys are happy to work for less than what a legal american will make because they don't pay taxes. For example, using redneck economics, an undocumented worker making $10/hr brings home more pay than a documented worker making $12/hr and paying taxes. And the illegal may send some of his money back to Mexico to build up a retirement there, where the US dollar spends so much farther. I work with these guys every single day and it helps to bolster my ignorance of world economics.
So, my jobsite was pretty barren last Monday when they joined the protest against the govt asking them to acquire documentation and pay taxes like the rest of us ignorant citizens. One guy I talked to doesn't want to pay the taxes we have to pay. I asked "Tienes Te Tarjeta Verde?" (Do you have a green card?) "No" was the proud reply.
Once they see what taxes do to their check, they'll want raises, which won't be possible during the present contracts they are working on. Many may go back to Mexico. Mexico doesn't have the taxes we do. School districts and other clients are not going to like the increased prices of bids to pay what it's going to take to keep those workers who must now make more just to afford the taxes here.
In India, I could probably live like a king on $10k/yr.
Notice how we don't outsource to Great Britain with a tax rate of nearly 50 percent, thanks to socialized medicine.
But then, you may be right, I may know nothing about world economics.