Thread: Outsourcing
View Single Post
  #8 (permalink)  
Old 03-30-2004, 02:31 PM
fatboy fatboy is offline
Registered User
 
Join Date: Mar 2004
Posts: 437
Rep Power: 255
fatboy is on a distinguished road
Default

Well, maybe I'm talking out of my posterior but here's my theory. Currently, the Chinese people are stifled. There may be some "toleration" of private enterprise and entrepreneurship, but certainly not enough to encourage full investment of resources and capital into innovation and entrepreneurship. Without that, the Chinese people will never realize their full potential.

Now, imagine if tomorrow China adopted a democratic government with guaranteed property rights (a collapse of Communism). All of those people would be free to pursue any business they wished and would be guaranteed the fruits of their labours. Businesses would spring up all over China and they would all be competing with the world. Their standard of living isn't like the west, so they would be able to compete brutally on labor costs. Their natural resources are plentiful and they have the technology to maximize their throughput. There would be no reason to demand concessions from the Chinese government (tariffs, quotas, etc.) because it would not be their government that allows them to compete unfairly. We would be forced to compete with them on an even playing field AND they would've adopted the greatest wealth generating concept the world has ever known: capitalism. They would only get better at the things we already do well: marketing, distribution, service, etc... That's the "world of hurt" part.
__________________
In this country, we don't need reasons to make things legal; we need reasons to make things illegal. - Startup
Reply With Quote