RE: India - wave of the future?

Subject: RE: India - wave of the future?
From: "Mark Baker" <mbaker -at- ca -dot- stilo -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Wed, 3 Sep 2003 17:38:47 -0400

Mike O. wrote
> The business world was shocked when Henry Ford paid his workers
> $5/day when
> he could have paid the same workers $2/hr.
>
> Now, after several generations of unprecedented prosperity and
> increases in
> the US standard of living, driven by high wages like Ford's, Ford is now
> losing ground to other countries with lower labor costs. But it
> took most of
> the century.

Sorry, but you don't produce prosperity just by throwing money around. Money
is just a medium of exchange. Prosperity is produced by creating actual
stuff. Then more efficiently you produce stuff, the more stuff there is.
Stuff is wealth. Money is just a means of exchange. All that you achieve by
artificially increasing the price of anything is inflation.

There is, of course, a good economic argument for paying your workers more
than the going rate. It can produce a high degree of loyalty and attract the
most highly skilled and dedicated workers. Staff turnover and high defect
rates may add more to the cost of producing a product than paying higher
wages. Ford had to operate in a competitive environment, and his costs
therefore had to be competitive with those of his competition. However,
lowest wages does not always translate into lowest costs.

---
Mark Baker
Stilo Corporation
1900 City Park Drive, Suite 504 , Ottawa, Ontario, Canada, K1J 1A3
Phone: 613-745-4242, Fax: 613-745-5560
Email mbaker -at- ca -dot- stilo -dot- com
Web: http://www.stilo.com

This message, including any attachments, is for the sole use of the
intended recipient and may contain confidential and privileged
information. Any unauthorized review, use, disclosure, copying, or
distribution is strictly prohibited. If you are not the intended
recipient please contact the sender by reply email and destroy
all copies of the original message and any attachments.








Previous by Author: RE: India - Wave of the Future?
Next by Author: RE: Outsourcing Jobs to India
Previous by Thread: Re: India - wave of the future?
Next by Thread: RE: India - wave of the future?


What this post helpful? Share it with friends and colleagues:


Sponsored Ads