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Sam Ramon

OUTSOURCING & TRICKLEDOWN THEORY

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The last few customer service calls I have had to make were all handled by call centers in India. I think that us corporations have 'out-sourced' almost all customer service jobs, which is too bad.

 

We're going off topic here but I just have to add that the U.S. has outsourced ALL KINDS OF JOBS. There are currently 15 million UNEMPLOYED here, 3 million will be without any benefits by the end of this month, having exhausted all their benefits. Many are losing their homes and/or cashing in their 401k's, selling jewelry, etc. to survive. Yet there is only ONE job for EVERY FIVE UNEMPLOYED.

 

This country outsources millions of jobs and now the Economy is paying for it. What did they think? That outsourcing jobs would NOT screw up our country???

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We're going off topic here but I just have to add that the U.S. has outsourced ALL KINDS OF JOBS. There are currently 15 million UNEMPLOYED here, 3 million will be without any benefits by the end of this month, having exhausted all their benefits. Many are losing their homes and/or cashing in their 401k's, selling jewelry, etc. to survive. Yet there is only ONE job for EVERY FIVE UNEMPLOYED.

 

This country outsources millions of jobs and now the Economy is paying for it. What did they think? That outsourcing jobs would NOT screw up our country???

 

Actually "They" were thinking that the wealthy would invest all their money in exclusive Hedge funds and with Bernie Maddoff and it would just grow & grow for ever....

What? Did you say that those were just scams & Ponzi schemes? Oh dear, I guess the trick'le down theory was a scam too.

Wonder what happened to all that money tho? Did it go where those darn socks disappear to from in the damm clothes dryer? There must be some black hole in space just chock full of socks & dollars.

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The operative term in "trickle-down" is "trick".

 

The dollars went into a black hole, all right, but it's in the Cayman Islands, not someplace in deep space.

Edited by David C. Murray

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The trickle down theory is a pejorative political term (not used by economists). Although neither the Republican Party nor the Democratic Party subscribe to this theory they both behave so in practice. The policy of “Too big to fail” started by Bush and enthusiastically continued by Obama is an example. It was and continues to be a political calculation, just one more tool in their bag of tricks, not an economic one despite the propaganda to the contrary. A problem is invented and the solution is rammed down the throats of the masses. Both Parties’ DNA is to amass money and power to further their end objectives. Eventually just amassing money and power become the end objective of both. No disaster man made or otherwise is allowed to pass without some political profit attempted.

 

 

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Guest arenalgrumbler

expat99 said that the Trickle Down Theory is "a pejorative political term." Where in the world did you get that idea? According to http://www.investopedia.com/terms/t/trickledowntheory.asp

the Trickle Down Theory is "An economic theory which states that investing money in companies and giving them tax breaks is the best way to stimulate the economy." I seem to recall first hearing about it when Reagan was President, and it certainly was not used to disparage anyone or anything. It also has nothing to do with any concept of "too big to fail," or any other such horse puckey. Granted, it is itself so much horse puckey, but please, let's not throw around terms so far from the mark.

John

http://arenalgrumbles.blogspot.com/

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I have no beef in this argument one way or the other.

 

However, I do know that trickle down economics is more of a political idea than an economic idea. Although commonly associated with economics in definition, it is most often employed by politicians.

 

For every definition Google turns up for it being economics, one can find an alternative for it being political. I guess college was good for something...

 

http://en.wikipedia.org/wiki/Trickle-down_economics

Edited by timothy

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Gentle Forums Members,

 

IMMHO, the concept of TRICKLEDOWN THEORY relies most heavily on the term TRICKLE, which by the definition of the word itself implies to me that not very much of anything is destined to reach the bottom, where the little guy is. And so far it doesn't seem like my hair ever even got damp from it.

 

Anyone is welcome to disagree with me, but hey, I'm just sayin' . . .

 

Regards,

 

Paul M.

==

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expat99 said that the Trickle Down Theory is "a pejorative political term." Where in the world did you get that idea? According to http://www.investope...edowntheory.asp

the Trickle Down Theory is "An economic theory which states that investing money in companies and giving them tax breaks is the best way to stimulate the economy." I seem to recall first hearing about it when Reagan was President, and it certainly was not used to disparage anyone or anything. It also has nothing to do with any concept of "too big to fail," or any other such horse puckey. Granted, it is itself so much horse puckey, but please, let's not throw around terms so far from the mark.

John

http://arenalgrumbles.blogspot.com/

 

Usage of this term is mostly political and pejorative and has no basis in economics.

 

 

 

http://www.capitalis...x.php?news=1115

 

 

"There has never been any school of economists who believed in a trickle down theory. No such theory can be found in even the most voluminous and learned books on the history of economics. It is a straw man."

 

Thomas Sowell

 

 

"The more you observe politics, the more you've got to admit that each party is worse than the other". Will Rogers

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Guest arenalgrumbler

I stand, partially, corrected. This concept is, indeed, political rather than economical in origin. However, I still have trouble with the reference to it as a pejorative.

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Gee, sorry I stirred this up, just a little too much 4th cerveza I guess. but if you want pejorative , how about Piddle-down? ;)

Edited by DanaJ

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The trickle down theory has been very devastating to the middle and low classes but, especially over the last few decades, there has also been an assault from many other directions as well--changes in labor laws, changes in bankruptcy laws and a general " tightening of the screws" on the average Joe. However, I truely believe that the worst thing that has happened to the working class has been the advent of low priced, powerful computers and the internet. Although the PC and internet have done wonders, they have also been a double edged sword in that they have allowed easier off- shore movement of our jobs.

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I stand, partially, corrected. This concept is, indeed, political rather than economical in origin. However, I still have trouble with the reference to it as a pejorative.

 

 

That part (about it being also a pejorative) is simply my opinion that anything used primarily by one political party against another political party to mischaracterize, confuse, or spread misinformation is pejorative in nature with the intent to gain political advantage over the other party rather than to educate the electorate. In this case it's the Democrats; but the Republicans have their share of political pejoratives too. I'm not siding with either party.

 

 

"Everything is changing. People are taking their comedians seriously and the politicians as a joke."

Will Rogers

 

 

In the case of the doctrine of too-big-to-fail I stand partially corrected too. It was not Bush who started it. It has been going on for decades but he sent it on an astronomical trajectory. Obama then throttled up and made the insane seem normal. We, in the U.S. have something in between true capitalism and socialism. Often times the argument shifts from one of economics to political using the terms above to engender strong emotions on either side in an attempt to gain political support for a course of action.

 

 

"Alexander Hamilton started the U.S. Treasury with nothing, and that was the closest our country has ever been to being even."

Will Rogers

 

 

http://www.trendfoll...epaper/bp52.pdf

 

 

 

"… The doctrine that the Federal Reserve cannot

 

allow very big institutions to fail, precisely

 

because they are big, out of fear of the consequences

 

of their failure for the financial system.

 

That doctrine is a direct inducement for

 

large institutions to act irresponsibly…"

 

 

 

Kevin Dowd September 23, 1999!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

 

 

 

 

http://www.georgewas...yths-about.html

 

 

Tuesday, October 13, 2009

 

<A href="http://www.washingtonsblog.com/2009/10/white-house-still-defending-myths-about.html">Debunking the "Too Big To Fail" Myth

 

 

"… the Bush and Obama administrations' actions mean that the government is becoming the majority shareholder in the financial giants more or less permanently.

 

 

The number one reason the TBTF's aren't being broken up is [drumroll] . . . the 'ole 80's playbook is being used.

 

As the New York Times wrote in February:

 

 

In other words, the nine biggest banks were all insolvent in the 1980s.

 

 

So the government's failure to break up the insolvent giants - even though virtually all independent experts say that is the only way to save the economy, and even though there is no good reason not to break them up - is nothing new.

 

William K. Black's statement that the government's entire strategy now - as in the S&L crisis - is to cover up how bad things are ("the entire strategy is to keep people from getting the facts"). …"

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