QUOTE(Julian @ Nov 5 2004, 06:45 AM)
QUOTE(Julian)
Clearly, though, this approach has gone somewhat awry, as in some areas we subsidise our own workers into overproduction so they dump the excess goods on the poorer countries at prices the local producers can't compete with, which puts them out of work - both EU and US farming practices do this on a massive scale.
QUOTE(Julian)
At the same time, we should broaden it out in our own economies to remove all subsidies - no matter how many votes there might be in them at home. Subsidies only really serve to spoil foreign economies with surpluses - we pay less at the tills for domestic subsidised goods, but then we've already paid the subsidies themselves out of our taxes. So, for us as consumers, it's almost a zero- sum game.
As I understand it. American farmers for example are subsidized to NOT grow, in order to keep the food prices at a certain level. That would seem to create a market for other countries foods here, if they can produce and transport them more cheaply then the prices we artificially inflate. What programs do you refer to? I'm not trying to suggest this isn't true, I just do see this sort of practice and would like to know where it exists.
QUOTE(Julian)
...if we impose rigid rules on working conditions for the procudtion of goods or services coming into our economy, the costs of production overseas will be forced up in line with the rises in living standards that the foreign workers then enjoy, which makes them a little less attractive to our own companies when they look at moving jobs abroad to cut costs.
QUOTE(Julian)
Such measures may slow the frantic pace of globalisation (but not by all that much, I bet), but they would ensure that what does go on will spread the benefits on everyone - workers, consumers AND stockholders.
QUOTE(CruisingRam @ Nov 5 2004, 11:27 AM)
We definately need some kind of global law and check for global corporatism, because the power they currently wield is in excess of many countries ability to combat.
Many people suggest some level of global rules concerning labor and business practices. I can see the value of such rules, but I'm concerned about how they would be enforced. How to you tell a sovereign nation that you can dictate what they do in one area or another? The answer, would seem to be economically, as suggested earlier in the topic. If you get an organization together that monitors labor and business practices in the world (with the bill going equally to the member nations via a small transaction tax or something similar) then when a country is found wanting, the information could be brought to the rest of the group who could choose to set sanctions on trade with that nation until the issue is resolved. This way, that nation can choose the path it wants to take, though it would likely fall in line to avoid reduced trade.
QUOTE(Cube Jockey @ Nov 5 2004, 01:38 PM)
Secondly, the tax code needs to be amended to not give
tax advantages to companies which relocate their operations overseas. To me that just doesn't even approach the realm of logic. Why would the US government have an interest in encouraging companies to send work outside of our borders? This one snuck in due to special interests and it needs to be eliminated because it isn't good for the country as a whole.
BRAVO!! This one issue that came up in the recent election that I entirely agree with! But we can go further. The reason it cost so much to do business in America is Regulation and Labor costs. We don't want to reduce wages, because that just reduces spending, which weakens the economy, but we can address regulation. Why do we fine a company out of existence when they don't install the proper stack washers to protect the air? Why don't we try a tax subsidy or partial grant to help them pay for the improvement to the environment?
QUOTE(Cube Jockey)
What the government as a whole can do here is offer tax breaks to companies willing to risk their financial necks to innovate here. The tax breaks need to be significant enough that they aren't just a nice door prize, but instead they are a carrot. And as far as consumers go, we need to reward early adopters (e.g. those buying hybrid vehicles). We are doing some of that today, but it needs to be a big enough break that it covers the difference between and traditional vehicle and offers extra incentive. I don't see this as controlling the market but rather prodding it in the direction you want it to go, and this is no different than what Greenspan does every day by manipulating interest rates.
Great Idea, though frequently this sort of thing is smeared as corporate welfare. The fact is, corporations need to be profitable to survive. If a new innovation is promising, but the early stages would create financial losses then fewer companies would invest in the development of the new "wonder SUV" or whatever.

Government subsidies on research allows business to reduce the risk of these venture to the point where the investment makes financial sense.
However, there needs to be a price for this. If the government subsidizes the research into a new drug, then the drug manufacturer should be restricted on how high the profit margin can be on that drug once it hits the market. Want to avoid such restrictions? Then take all the risks on your own. Want the government to financially assist in mitigating the risks? Then agree to a maximum profit margin.
QUOTE(Cube Jockey)
Fourth, we need to get programs put in place to re-train people in these industries that we are sending overseas. It simply isn't enough to say "sorry we are closing the plant and sending it to Mexico, best of luck finding another job". We need to be taking these people into programs to re-train them to do other jobs and fit in to growing industries. I frequently hear the rhetoric that these people should do this on their own. On a certain level I can respect and agree with that, but I also know first hand how difficult it is to make a radical change in your life, go back to school and leave everything you know. Most people aren't strong enough to do that and fear overtakes them. We need a program, resources and support that makes this easier. A factory worker with 3 kids isn't going to be thinking about going back to school for a new job, they are going to be frantically looking for the same job (even with less pay) so they can pay the mortgage and put food on the table.
Absolutely. But how do we fund such programs? That is the problem with much of what is proposed in this arena. The cost of doing business in the west is what drives companies to the east, but most of the solutions cost more money.
A simple way to pay for this is the flip the tax break companies get for going over seas into a tax penalty and legislatively earmark all revenues from that tax to worker re-training programs and the like.
One of the problems American's have with globalization is how devastating the loss of jobs are too Americans being that all of their benefits are tied up with the companies.
One of the problems American companies have is that to avoid going over-seas they need to be able to increase and reduce their work force rapidly, to maintain their smaller profit margins. This is the reason for the surge in contract employees and temp workers in recent years.
Corporations spend approx. 500 billion a year just on compliance with Federal law on employee benefits (Source = the Radical Center (Link in first post)). One of the problems with this is increased operational costs, another is limiting employees to a cookie cutter programs, one size fits all. This applies to 401ks and health benefits.
If, we could separate those benefits from the employee and let the worker manage them directly:
- 500 billion would go into corporate coffers, reducing operational costs,
- workers would be able to get the plan that best suits them,
- workers would not have to worry about changing plans when they change jobs,
- The difference between contract and in house employees would be nearly meaningless
- The reduced stress on employees would allow for employers to manage their
work force size based on their needs at a rapid pace.
(Thanks Julian I learned how to do that from your post

)
There is another benefit to workers, but this is likely a good thought for creating an entirely new topic on addressing healthcare.
Right now, because workers change jobs so frequently, Insurance companies have no incentive to cover preventative medicine. However, if the Insurance was managed directly by the consumer, the consumer would be more likely to stay with the same insurance long term. This would create an incentive for the insurance companies to cover preventive care and testing because it would reduce their costs down the road.
There are many innovations we can make that would allow us to adapt our country to take the next century head on. However, most of these are political hot potatos that few people in politics have the courage to address.