But see... if he is looking for the lowest rate per hour China will *always*
win. So those manufacturing jobs may as well go there. But what about
service and convenience store jobs? You can't outsource those to India. I
think you're better off hiring the best and paying for it. You can always
restructure the job to be intelligent by going theory Y not X.
 Another problem with your model though is that outsourcing costs, from my
reading, tend to run much higher than the rate per hour reflects, to the
point where my economic development proposal for East Texas was a reasonable
alternative at $10 an hour, a very high rate for the area.
 I've looked into this quite carefully, Gruss.

Dana

 On 9/27/05, Gruss Gott <[EMAIL PROTECTED]> wrote:
>
> > Deanna wrote:
> > The state wage is significantly lower than the city wage was to be, and
> > there's no provision for incremental increases like there was in the
> city
> > version.
> >
>
> That's the problem with the minimum wage: it isn't trying to solve any
> problem, just mask the symptoms. And in doing so, it creates more
> problems.
>
> Quick example. I know a guy who makes roofing knives for a small
> business. He used to pay people the minimum wage to do the final
> assembly until he figured out it's much cheaper to send the parts to
> China for assembly. Bye, bye jobs.
>
> If the minimum wage increases, however, those people out of job can
> find another one that comes with a pay rise! Why did they get rise?
> Because they earned it through skills acquisition? No. Because the
> gov't gave them a hand out. What message does that send? Do nothing,
> get raises.
>
> The only problem is those jobs are going to China and the ones that
> stay train people to stay stupid.
>
> 

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