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View Diary: Rand Paul explains Republican economic philosophy in 30 seconds (229 comments)

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  •  Yah. The death of middle class is the (4+ / 0-)

    death of democracy. Put people in survival mode and they don't have enough time to invest in political process, to become educated. You get gangs, you get colombia, mexico, etc.

    My home town is going to have to cut police force and road mainenance because the only way the city could see to survive was to add another sales tax. That would have brought total sales tax up above 10%. So schools, roads, police, trash collection will be cut. And thus we take another step closer to the 3rd world, while india takes another step closer to the 1st.

    Infrastructure pays off.

    "We have always known that heedless self-interest was bad morals; we know now that it is bad economics" - F.D.R.

    by biscobosco on Wed Nov 03, 2010 at 11:09:06 AM PDT

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    •  Infrastructure = civilization. (2+ / 0-)
      Recommended by:
      rhonan, Inspector Javert

      I am not even kidding.

    •  qwerty (0+ / 0-)
      "we take another step closer to the 3rd world, while india takes another step closer to the 1st."

      Progress, development and economic well being aren't zero-sum games, and approaching it with such a mindset is misguided and ultimately not helpful to the US itself.

      •  Well, with Democrats like you guys... (0+ / 0-)

        I have no doubt that you'll do your best to turn us into the 2nd world.

      •  no that was not my initial point (0+ / 0-)

        That the two had anything to do with each other But now that you mention it, there is some truth to it.. billions and billions of dollars of high-paying jobs in my industry have been outsourced to India and China. India has sustained large economic growth for the last decade - Alot of it based on business process outsourcing and IT outsourcing from Europe and US.

        During the late 2000s, India's economic growth averaged 7.5% a year.[129] Over the past decade, hourly wage rates in India have more than doubled.[137] According to a 2007 McKinsey Global Institute report, since 1985, India's robust economic growth has shifted 431 million Indians out of poverty and by 2030, India's middle class population will rise to more than 580 million people.[138].. A 2007 Goldman Sachs report projected that "from 2007 to 2020, India’s GDP per capita will quadruple," and that the Indian GDP will surpass that of the United States before 2050, but India "will remain a low-income country for several decades, with per capita incomes well below its other BRIC peers."[150]  

        There might not be a zero-sum to you, but when I pick up a trade rag and read about another company in my industry closing a location in the US and the exact same jobs being hired in another country. Well - that's about as zero-sum as you can get. Or you could say I suppose that the profits made by the company that outsources or offshores jobs overseas are part of the zero-sum equation.

        I think the truth is that with globalism countries can position themselves in the global market as high-end places to do business, and suppliers of high-end educated labor or as commodity suppliers of low end labor.

        The US is sliding because our corporate masters gain by lowering the cost of labor here. India is rising - but when salaries get to high there things will slow. Even now the competition between india and china is big. We will all meet somewhere in the middle.  Welcome to the global economy.

        "We have always known that heedless self-interest was bad morals; we know now that it is bad economics" - F.D.R.

        by biscobosco on Wed Nov 03, 2010 at 09:10:23 PM PDT

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