Quote:
Originally posted by berettafan
not to get off the medical topic here but i feel these two statements are at odds. thoughts, arguments?
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As a system the American economy benefits from cheaper labor. Wether it is the contractor, the consumer, the big fat Wall St company that makes the $$$ it does not matter.
And as long as the $$$ made on the back of cheaper labor is reinvested in the American economy then all is good.
The problem arises when the profit is reinvested outside America (read investments in China). Then the net net is more difficult to calculate.
Someone will say that even if you put money into China you'll have the benefit from cheaper prices for the goods. But the benefit has now been diluted as a chinese worker has to be paid and a company (American) has to make a profit.
So in a closed economy the cheaper commodity (labor in this case) is good. But in an economy that is allowed to invest outside then it is not a zero sum game.