Sunday, May 07, 2006

Party like it's 2000 99?

It costs a company $600 to build a new server (big computer) in the US. The cost of doing the exact same thing in Latin America is under $50. And yet, most US company continue to have most of their servers in the US. Should this change?

It costs a US company probably one order of magnitude more to hire and employ a human in the US than it would take it to do the same in China or India or parts of Latin America. Why should any US company employ anyone in the US?

Building or renting an office building or a production facility in Asia or Latin America would cost a US company a lot less than doing the same in the US.

Given all of the above, for any US company continuing to stay in the US does not seem to make sense. The logical outcome and the probable outcome of the current globalistic and 'free trade' arrangements is for all the US companies to leave the US as their only incentive left for them to continue to stay in the US - the US consumer market - is likely to fade away while the US-based consumers become increasingly unable to continue to consume.

The above (the US companies leaving the US) could only be prevented by: world war, catastrophic social unrest in the Third World, catastrophic and world-wide economic collapse. Reversing the current globalistic policies may no longer reverse the trend as the US share of the world’s economy continues to decrease.

It is interesting to note that, regardless of a peaceful fading away of the US as a nation or as a consumer market or some world-wide catastrophe, the eventual outcome for the US 'consumer' is bad all-over. I am aware of no forecast of an actual 'improvement' in the US standard of living or for a US economy revival.

Can anyone picture the US and the world in 2100?

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