“Is the American way of life directly (or indirectly) a hindrance to other countries’ ways of life?”
Why is the answer YES? Because of… you guessed it… the principles behind offshoring.
If all third world nations became prosperous that would mean their standard of living would increase. In fact, this is a historical fact. Workers in Japan are a classic example. China and India are emerging examples, as is Latin America. Their GDP is going up and so is the average amount of wealth being held by their citizens.
The oft-made claim that there are 900 million desperately poor people in China does not negate the fact that China has a growing middle class. Growing, folks, as in growing in numbers. So does India. Their GDP is going up and so is the collective wealth of their citizens.
History also shows that the cost of labor in these countries has risen as their standard of living has improved. Japan is a classic example. China and India are emerging examples. They’re even looking at offshoring to places like Eastern Europe and Vietnam as a direct result of their improving standards of living.
So let’s do some induction here. If the standards of living increase around the entire Third World such that they rise to the level of the First World, their wages will also approach the levels of the First World. History has already demonstrated this with individual countries like Japan.
When Third World wages approach First World wages it will become too expensive for offshoring to continue.
Emacknight has rigorously argued that this would have a profound effect on the cost of goods. If you cannot find labor priced much below American labor anymore the cost of an iPod will in fact bounce back from $300 to $1500: because when the Third World reaches First World standards of living, you will not be able to find labor anywhere that is cheap enough to keep iPods at $300.
Of course I pointed this out to him in a roundabout way but that’s about when he gave up-er, I mean, declared spank.
Of course the alternative is that these other countries remain quite poor so the cost of their labor remains very low. Which means that if you accept the pro-offshoring argument… first world living standards cannot survive without the third world having low standards of living. If we are to maintain our standard of living, according to the pro-offshoring argument, we MUST interfere with the third world’s rising standard of living… or things will become QUITE expensive here because we cannot find cheap labor anymore.
RickJay? Msmith? John Mace? Emacknight? Ravenman? Care to explain how we can keep labor cheap if standards of living rise to American levels all around the world?
And I’m not just talking manufacturing. This’ll affect call centers, research jobs, computer tech jobs… a bunch of things that you can offshore but can *not[/] automate.
What, got nothing to say now? I wonder why…