Re: More on Outsourcing and Offshoring

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Re. the following:

> At what point will economists face up to "averaging down"?  And must
> the Law of Comparative Advantage rule? -- that most sacrosanct of all
> economics (I've been forcefully told by economists)

Comment:

At the point where...

I was going to write

... where economics education via satellite hook-ups with Indian professors
threatens to become the norm in U.S. Economics Departments.

But, of course, that is not going to happen!

For the credibility of contemporary U.S. economic "thought" has been on the
line ever since U.S. economics "thinkers" from Samuelson to Friedman
welcomed the advent of post-Bretton Woods world monetary arrangements
whereby an open-ended U.S. overdraft on the Rest of the World through
creation of new dollar purchasing power became a vehicle for "exporting"
real jobs in exchange for cheap "imports".

And, once the facts of the matter sink in, there won't be any credibility
left for contemporary "economics education."

Gunnar




----- Original Message -----
From: "Mason Clark" <masonc@xxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Sunday, July 27, 2003 5:50 PM
Subject: Re: More on Outsourcing and Offshoring


> >  It effectively makes for a borderless labor market in a global
experiment
> > with the idea of "comparative advantage".
>
> At what point will economists face up to "averaging down"?  And must
> the Law of Comparative Advantage rule? -- that most sacrosanct of all
> economics (I've been forcefully told by economists)
>
> > Countries like the Philippines, India and China will be
> > able to create jobs that otherwise would not be created.
>
> Without the importation of jobs and export of goods -- isn't it just
possible
> that developing countries could, should, and would create jobs producing
for
> their own consumption, including production goods?
>
> Is it an accepted, irrefutable fact that development depends on
> mercantilism, i.e. exporting to earn foreign money?
>
> Admission of bias: I live in the former apricot center of the world and am
> eating Turkish apricots. The nearby garlic center of the U.S. is beginning
> to cease farming and instead import garlic from China.
>
>            Mason C
>
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