Elaine Chao the Secretary for Labor told G. Gordon Liddy’s audience today her belief about the preponderance of “outsourcing” to cheap labor markets.
Is it simply because of cheap labor?
No.
In fact, she sited that the “cheap labor” was offset by additional costs of adapting to foreign languages and cultures.
The productivity of the American workforce is unequalled overall, and cheap labor overseas is not guaranteeing productivity which also adds to the costs.
She also didn’t mention the frequency with which bribes and kickbacks are solicited in order to do business.
So, while labor is “cheap” as a line item, there are other costs involved and proportionate risk.
(One she didn’t mention is that big business likes to think that Third World dictators are easy to deal with if the money’s right. They forget that the government megalomania that keeps the people under their thumb also makes these nations prone to “nationalize” industry such as Bolivia’s recent actions in that regard with oil company capital.)
So if there are all these risks, why the lure of cheap labor?
“The cost of capital”… in other words, the tax structure makes it easier to do business overseas even after bribes than here.
She then went on to highlight the need for the American workforce to continually improve and update skills, but in the hurry to get to that issue (in response to Liddy’s questioning) the issue of tax structure was lost.
The people wanting your vote this November in order to protect you from “outsourcing” are the same people who created and/or allow to continue the tax structure that drove your job off shore!
Thank you Secretary Chao for making this clear once again.
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