Re: Charles Murray "The Plan" ends poverty

El Castor wrote:
Islander <nospam@xxxxxxxxxxx> wrote:


El Castor wrote:


NoName <noname@xxxxxxxxxxx> wrote:



On Sat, 24 Mar 2007 16:21:53 -0700, El Castor <NotAnyone@xxxxxxxxxxxx>
wrote:



Gary James <none@xxxxxxxxx> wrote:



On Sat, 24 Mar 2007 09:11:43 -0500, Gary James <none@xxxxxxxxx> wrote:



Charles Murray -- the guy how gave us "Bell Curve" -- has come up
with a plan to end poverty in America. His new book is called "The
Plan". He suggests that every American over age 21 be given $10,000
a year and all other programs abolished. It's interesting.

http://www.nationalreview.com/interrogatory/qa200603270732.asp

Pardon my error. I didn't make myself clear. The name of Murray's
book is "In Our Hands". He refers to it as "the plan".

Murray is a smart guy. Whatever his plan is, it's worth a look, but
anything that threatens a vast government bureaucracy staffed by
endless fat Black women probably doesn't stand much of a chance.

Endless fat Black women -- if I ever read a racist comment this is
one.

What the hell is the matter with you?


I dunno? Maybe I'm a racist? But, isn't it endless rows of fat Black
women? I thought it was? Aren't we supposed to say what we think -- or
is it, think what we say? Endless rows of fat Black women -- that's
it. Now send the PC Police to arrest me. I suppose if this was France
I would be on my way to the hoosegow. )-8


Your racism may be showing, but it is a moot point anyway. It is endless rows of Indian women who are answering the phones these days because the government has outsourced these services to the lowest bidder, ignoring the potential multiplier effect of paying Americans to do these jobs. Why are we spending tax money to pay salaries of foreign employees of US companies?


I assume you mean that the federal government is outsourcing to
private companies and the private companies are outsourcing to India.
Correct?

Here is why that is a GOOD thing.

1. Outsourcing federal jobs to private companies is a more efficient
and inexpensive way for the feds to get the job done.
2. Outsourcing call center jobs to India is more efficient and cost
effective than employing domestic resources -- or private companies
wouldn't do it, and the economy benefits when companies operate in the
most efficient cost effective manner. It benefits us all.

Follow the money. Taxpayers pay taxes for services and that money is drawn from the local economy. The government takes that money to hire companies to provide these services. These companies extract a small profit (typically 7%) and send the remainder of the money to India where it is used to pay salaries and taxes in that country. Those salaries and taxes are paid into the local economy and contribute to that economy, not ours.

Contrast this with hiring local citizens to perform the same services. It will cost more since labor costs are higher here. The company does not get to deduct taxes paid to a foreign government, but does get to deduct taxes paid to the local government as business expenses. But, now the salaries and taxes paid go back into the local economy.

The higher costs of doing business locally do not show up in the books of the company or the specific agency doing the contracting, but they can be justified if the economic multiplier for the local region is larger than the difference in costs. Economic multipliers in the USA are typically in the range of 2-4 (some sources cite higher numbers for local regions), so we can afford to pay a great deal more to keep jobs local than to outsource them to India.

Hope that helps.


Why are we allowing these US companies and the stockholders of these US companies to deduct taxes that they pay to foreign governments?


Because it's an expense?

Sure, but that doesn't mean that it should be allowed.

Jeff

"It is useless to attempt to reason a man out of what he was never reasoned into."
Jonathan Swift
.

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