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outsourcing
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Is it REALLY wage levels that are the primary reason why companies relocate from first world to third world countries?
Take the US. The US for many decades has had higher wage levels than (say) India, yet the trend of outsourcing is a relatively recent one. African countries probably have lower wage levels than India, yet few Western companies establish business there.
Isn't it increased regulation that is the key here? To me there is no need to tax the profit a company makes. That profit could be used to hire more people or pay their existing staff greater wages!
Take the US. The US for many decades has had higher wage levels than (say) India, yet the trend of outsourcing is a relatively recent one. African countries probably have lower wage levels than India, yet few Western companies establish business there.
Isn't it increased regulation that is the key here? To me there is no need to tax the profit a company makes. That profit could be used to hire more people or pay their existing staff greater wages!
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i'm no economist but wouldn't that fuck up the economy, i think its all down to greed to be honest and i don't need to go into detail to explain.
It is right that profits are taxed, but that is a different argument.
It is, in fact, deregulation that has caused the cancer of "outsourcing". It is easy to do it- no-one stops them- and communication links are now so good that it it is feasible for the first time.
It is profiteering, and slapping a 500% profit tax on those who outsource would cure the problem immediately.
No, that would benefit the economy!
If companies paid no tax on their profits, then they could reinvest that profit to expand their business (and perhaps hire new staff in the process).
But with more staff, or paying existing staff more money, it would mean more money is spent on goods and services in the economy as a whole!
yea but does that not push prices higher
Companies cannot expand indefinitely, the space is finite. What would happens is we would have monopolies, such as Tesco being the only food store, and prices would rise exponentially as a result. Which, again, would be bad for the economy as people, without any dispopsable income, would have what little they had swallowed up by higher prices for essentials.
The CEOs would be happy, though, as they would receive a percentage of profits as bonuses, thereby widening the gap between rich and poor to levels not seen since the end of serfdom.
If government expenditure is only 5-10% of GDP then taxes on company profits wouldn't be necessary!!!
Corporations will try and get away with ANYTHING in order to make more money.
And it's little known that a corporation HAS to serve the public. If it does't have any use then the government has the power to shut it down.
Corporations are the biggest polluters in this country, so they are taxed the heaviest.
Another point, if companies paid no tax on their profits....you're being very naive if you think they'd reinvest that money into the community or staff wages. It would be reinvested into the directors pockets.
Companies ALREADY reinvest their profits, but into new capital!
Of course they are going to go all out for profit, thats the point!
But money grabbing business doesnt always mean they will rape and pilage the earth and everyone in their path.
It is the fault of the government and the consumer if this behaviour goes un-punished.
Or perhaps they could pay bigger dividends to their shareholders/owners. That way they could add another nought to their bank account, or buy a second ferrari (this time in yellow)...
History has shown that if you give the rich more moeny then it is more likely to go into a big pot. Trickle down economics is a myth, the gap between rich and poor just gets wider.
If you give the poor money then it is more likely to be spent... thus improving the economy...
Sorry but what other source is there to reinvest in new capital/equipment, etc.? Borrow? You have to pay it back!
More profits would mean more money to reinvest, hence improving the economy! It's a no-brainer!
:cool:
Except perhaps the little matter of affordability.
You are right, it is a no brainer. Which is why I am surprised that you mention it. Look at Thatcherism and the economics of Reagan, then tell me that the investment in industry took place.
You could start by looking at the gap between rich and poor at the start and end of their terms of office. You could also ask yourself why so much of the world's money is in the hands of so few.
Alturism doesn't exist in the main. Greed does.
Well under Thatcher, people of all classes were encouraged to buy shares in the privatised companies. They weren't THAT expensive at the time!
So you're advocating altruism yet claim it doesn't exist?!
Indeed. At what cost? 3m plus unemployed for example.
Which they already owned as taxpayers. It had to be one of the most ingenious stings of all time. Our taxes bought/set up the services. Our taxes paid for investment over years. Then, when Maggie wanted to raise some money those schmuk taxpayers paid for it all again...
Really. I think gas (or was it BT) went for £2.20 per share, with a minimum purchase of 100 shares. Or £220 plus fees. At that time you could have fed your familiy for a month for that.
Choose.
Oh, and there was an amount set aside even then for the financial sector to invest their money in. Just so that they could also make a profit from the flotation.
It doesn't exist because of economic policies like you suggest. Such policies don't encourage people to invest. Taxation does.
And with that smiley you gave yourself away.
He's been here a fortnight now...
Wasn't until now that I was sure.
Some people just can't change their style, can they?
I knew he was from his rants in health and relationships.
Same hatred of all authority.
Some of us don't get about so much...
I work in Outsourcing, and I live in Wales...
We do have some teams in India, mind you.
Why the heck is it wrong for me to use it?!
I have emotions like everybody else you know!!;)
When call centres are moved abroad there is an out cry.
Yet when clothes/TV/cars/etc. manufactor was moved abroad everyone loved the cheaper price!
ALL of you should bank with First Direct, their customer service is excellent, you never wait and they always know what they are talking about.
I tried the other day. They stated I didn't match their criteria but they did confirm my credit file held no adverse information.
Maybe it's because I wasn't willing to pay my salary into the account etc ????