QUOTE(Tim-Mello @ Mar 3 2005, 02:23 PM)
BUT, when you pay some poor CHinese guy $1/day, that's still far below a decent wage. Things in China are NOT that cheap.
1 dollar a day may be extreme, however there are countries that this is very close to what is needed, though that will change as more and more people earn that wage, and can buy more goods, the price of the goods will go up. I remember the Save the Children ads "for less then a dollar a day you can sponsor a child". My family did that. They got a lovely letter from the child thanking them for financing her Piano lessons.

In many areas of the world, people live on less then 1% of what the average American makes.
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Another thing to consider is America's Poor. If you institute higher minimum wages both here and abroad, you increase the costs of production. ...Where is the benefit here?
I don't want to state the obvious, but, how about INCREASE WAGES? Have you ever heard of the doctrine of Henry Ford? He increased wages to increase demand for his products.....AND IT WORKED.
You're forgetting the law of supply and demand. As more people are able to buy something, and they choice to do so, the demand goes up. As the demand exceeds supply the cost goes up. Supply and Demand has a major effect here as well. Why is it that houses built 100 years ago for 1000.00 now sell for 100,000.00+? Isn't this at least partially because so many more people can buy houses today?
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It is the work performed overseas that allows people like me to support a family of three on 30,000.00 a year.
How is that? I make less than that and everything I pay is going UP. Sure I can get some things very cheap like clothes and crap made out of plastic. But the effect of "overseas" isn't reducing mortgages, rent, heat, phone, utilities, electric, car payments, food, tickets to entertainment such as sports or movies, etc. etc.
Overseas isn't helping much with basic needs. Yet you're 30,000.00 could sooner than later become 15,000.00 LIKE ME when they realize they can hire Indians to do that work for $1-4/hr. You assume YOUR pay will remain constant, which is a bad assumption.
I know my pay will remain constant because I have a contract. I also know there is no reason for my employer to reduce it because I am paid piece work, meaning I am only paid based on what I produce.
How do I live like this? For one I make certain decisions. Like owning used cars instead of new ones with payments. Buying a smaller house, in a cheaper area that needed work so that the purchase price was only 25,000.00 then working hard to make extra payments on the mortgage to get it paid of in years instead of decades. Paying monthly for cable and be satisfied with waiting a bit longer to see movies, not going to major sporting events at all because I would rather be comfy at home and watch through a professional cameramens lens, then be uncomfortable at a stadium trying desperately to keep up with the action through binoculars from the nose bleed section, going to discount grocery stores with coupons, doing home improvements to reduce heating and cooling costs and then wearing less or more to be able to keep the temperature higher or lower to save money, paying extra for an unlimited long distance option on my phone bill to save money on all those calls to the east coast (love ya Mom

), drying clothes outside in the summer and keeping the heat from the dryer in the house in the winter, etc, etc, etc. I can do it because I live in the midwest and I do what I can to live within my means.
And unless they come up with some way to install alarm systems from across an ocean cheaper then someone here can do it here, I bet my job is safe. So part of the equation is also looking for work in areas that simply cannot be outsourced.
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that increase will likely push my family onto public assistance.
So would losing your job to companies that went overseas.
Forcing an increase in the minimum wage will either increase the costs of goods and services, making it almost useless for the poor, or reduce the number of low wage jobs, which is also bad for the poor.
Those are assumptions you can't back up with facts. Increasing wages for the poor may give them new economic power, they may spend more in the ghettos of America, creating new businesses. Here in Detroit, there are relatively few stores (in the city per se, in the suburbs malls are abound). Stores just don't go into Detroit because of the poverty and crime. Maybe increasing their income would start a spending boom in the poor communities.
And you have provided which facts for your "assumptions"? See above for my situation. However, which is worse here? Some people having to make job changes because of outsourcing or everyone having to tighten their belts because of the sudden cost of living increase due to insolationism?
It is common sense and basic business. If make a product costs X+Y+Z to produce and X is labor and you are forced to increase the cost of it, then to continue to make a profit you must increase the selling price of those goods. Also, the highest cost of production of most goods in America is labor, so increasing those costs will likely drive even more work overseas.
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Suggesting that they will reduce profit margins, or executive salaries is simply not realistic. The world does not work that way.
The world works the way we want it to work. Or don't we live in a democracy?
Sure we do, and people vote in those democracies, and 50% of Americans are Employed by small businesses that would likely be devastated by such labor cost increases, and those small business people vote too. The other 50% are employed by those corporations that would be looking at layoffs or overseas moves if their are forced to push their production costs above what the market will bare.
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When faced with increased costs of production, businesses always make one (or more) of three choices:
Reduce labor costs
Increase the price of the Goods
Close / relocate the business.
That's not necessarily true. If the profit margins are wide enough, some companies just make less money. But again, I give you the Henry Ford mantra, pay your people well and they will be great consumers. Increasing wages may also increase revenues, hence the costs of production may increase, but so will revenues.
Again, supply and demand is a major factor that this idea does NOT take into account. Also, these companies still have to compete with foreign produced goods sold here by foreign companies, as American Made goods prices are forced up by higher labor costs we make the foreign goods that much more attractive to the average consumer.
Also, if everyones wages go up, and to making this happen causes the costs of goods and services to go up to pay for those wages then are the people with the higher wages really getting anything out of them?
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To me, the best answer that works for American Consumers and Workers is to re-train workers who lost their jobs to overseas plants....
Nothing gets me more agitated than the comment above. Exactly how often do you "get new skills"?? I have more education than most people on this board, and I'm working for $10/hr PART TIME. What skills exactly do I need? Do I need to be constantly a FULL TIME student, getting a Nursing Degree, then getting A LAW DEGREE, then getting a Md, etc. etc.????
Ok, since everywhere I have ever lived has a shortage of qualified nurses in hospitals and it is not possible to outsource hospital nurses I would say if you choose that route you would be set. You cannot argue a case in American court from India so again, you would be safe. If you went all the way and became a practicing doctor, be it a generalist or any of the multitude of specialities, again (assuming you could afford the malpractice insurance) you would be set (Yes there are "medical tourists" who seek to go around their countries waiting times or our countries medical costs and goto India to get a medical procedure done, but these people are few and far between). You can't install an alarm, build a house, fix a car, etc, etc, etc from another country so if you looked at your career options, and did a bit of research you would likely find that there are many directions you can go that would protect you from outsourcing and can be quite lucrative.
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...But let's say after 4 years George Bush increases visas so Asian Nurses can flow into the country, making all my effort and money spent rendered useless?
I asked a similar question before and you ignored it so I'll try again. Do you think I am a President GW Bush supporter?

Excellent point!!

You won't get an argument from me on the multitude of immigration issues that need reform, nor that these issues are being handled in the wrong way by the current Administration. However, I fail to see how increasing wages changes this problem.
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No job is safe and just saying "get retrained" is SOOOOOO much easier said than done. How do get ANOTHER degree in a short amount of time, especially if you have family and obligations and a full or part-time job that pays NOTHING ??
You don't always need a degree. I can tell you how easy it is, I have made 4 career changes in my life, some out of necessity and some out of choice. I do not have a tech school or college degree in electronics, and yet that is what I do everyday (and only a handful of the 100 or so installers I know have any formal education). I am pursuing some schooling to improve my options, like A+ certification and the like, but a degree is not needed for every job.
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No one is looking out for labor in this country. It's becoming increasingly discouraging to pursue "the American Dream" which has been more and more limited to those who Bush calls "his haves and have-mores".
Sometimes you have to re-evaluate the dream. I work with guys who work on the hourly side of my company, make more money then I do, and also have a wife who works (mine does not) and yet cannot make ends meet. But they just had to have that 3000 square foot house in the "right" neighborhood, and the new car
s every other year, and the new clothes on a near weekly basis, and they have to goto major league sporting events all the time, etc, etc, etc. They choose to live way outside of their means and then blame the company, the government, etc (not putting you in this category as I do not know your situation).
One of the groups NOT looking out for labor are the
unions. They look out for THEIR people, but no one else need apply. Most trade unions (until recently) unofficially required that you have family in the union to vouch for you in order to get in yourself. The only reason this is beginning to change now is because most trade unions are looking at loosing 50% or so of their members to retirement over the next 10 years. So there is another option, assuming they relax their "ancestry" requirements, consider a skilled trade and apply for their apprenticeship program.