Arthur,

 

As you know, if companies reduce costs, this will be reflected in lower prices for the entire population. We can stop “off-shoring” in order to “save” jobs if we wish, but it will be at the expense of all Canadians.

 

But, we may protect those and other jobs but not without raising costs, but this requires protecting these jobs by stopping cheaper competitive goods from entering the country.

 

Again prices are raised and poorer people demand help.

 

So, taxes are increased on efficient industries and more productive people so that some form of subsidy can be doled out to hard pressed Canadians.

 

By now the country is in the system. Everything must now be done within this artificial construct and before long we really believe that this is the way things should be done.

 

Economists specialize in these interventions and soon come to believe it’s the way things should be. And they can’t really handle the complications which is why they are such poor predictors.

 

Examples of this state of affairs abound in countries across the world. It’s an Alice in Wonderland that has persisted perhaps because there is no little boy to see the Emperor has no clothes .

 

If it is so important to preserve jobs and “create” full employment, the easiest way to do it is to outlaw machinery. That would get all of us working day and night to stay alive.

 

Silly thought? Not really, for most of these economic ‘full employment’ nostrums depend on making production more difficult, thereby making more workers necessary.

 

You’ll recall the two assumptions that precede Classical Political Economy.

 

“That people’s desires are unlimited.”

 

And

 

“That people seek to satisfy their desires with the least exertion.” 

 

If the first is true – simply find an exception – unemployment is an anomaly.

 

If the second is true – simply find an exception – then making the satisfaction of desires more difficult is contrary to the basic wishes of us all.

 

I’ve quoted Henry George’s pertinent questions several times – because it goes to the heart of the matter – and because I like it.

 

“Why are people looking for jobs? Why aren’t jobs looking for people?”

 

As each desire is satisfied, more desires come into focus. Nearly impossible desires are relegated to the bottom of the list – but are not forgotten.

 

Desires can range from three squares a day to a walk on a nature trail. All of them depend on the easiest possible production of wealth. If production is difficult you may never get on that trail.

 

There is no doubt that in both Canada and the USA injustice prevails – and that is what should be attacked. Yet, it rarely is. Rather we spend our “reform” energies on trying to get a better deal for the underprivileged. We try to find ‘jobs’ for those desperately seeking an income. We give food to those who are hungry and accommodation for those who cannot find an affordable place to live.

 

We might say that in indulging themselves with “feel-good solutions” so-called reformers are doing little more than solidifying existing injustice.

 

And a ‘national industrial policy’ is one of the ‘feel-goods’.

 

Harry

 

**********************************

Henry George School of Social Science

of Los Angeles

Box 655  Tujunga  CA 91042

818 352-4141

**********************************

 

 


From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Cordell, Arthur: ECOM
Sent: Thursday, January 26, 2006 6:58 AM
To: FUTUREWORK (E-mail)
Subject: [Futurework] "Offshoring costing jobs in Canada"

 

"Offshoring costing jobs in Canada"

An estimated 395,000 Canadian jobs, including 91,000 in Quebec - double the population of Drummondville - could be lost to developing countries during the next four years, a pair of Université de Montreal researchers predict. Political science professor Pierre Martin says the process known as offshoring, where companies transfer some of their operations overseas to reduce production costs, would be responsible for that number of job losses by the end of the decade. He cautioned offshoring isn't to be confused with outsourcing or contracting out. Offshoring is substituting foreign for domestic labour, and outsourcing is delegating non-core operations or jobs from internal production to an external subcontractor. "This new phase of globalization is threatening workers who used to be protected," noted Martin, who is also director of the university's Chair in American Political and Economic Studies. (M. King MtlGaz B4)

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