An Experiment Reflecting America - India Economics

The Background

Down To The General Store

New American Economics Experiment

In April, I read an article in the newspaper about how American companies are sending work to India.  According to the newspaper, workers in India are being paid over $17 billion a year for work Americans used to do.  

The good news, according to the article, is that India has tripled its imports from America.  India is now importing $7 billion (per year) of American goods.

Now, it seems that economists and the businesses involved want me to think this is a good deal.  Somehow, I'm supposed to believe that America is benefiting from this.

I'm not a big math whiz.  I've never implied that I'm an economist.  In fact, when I went to college, I didn't want to sit through 9 weeks of Economics classes, so I tested out of it.  Even so, I can't figure out how America's getting the best deal out of this arrangement.

Sure, I wouldn't know a billion dollars if I saw it.  I'd figure someone slipped me a controlled substance and I was hallucinating.  And I'm willing to bet there could be something in this that I'm just not understanding.

Still, the way I figure it, America's about $10 billion dollars behind in this deal.  American workers have lost $17 billion in salaries.  The government's lost the income tax on those salaries.  That's federal, state, and local taxes.  And the American economy ain't getting richer from purchases made with that $17 billion, either.  But we're getting $7 billion from India from exporting to them.

Now, if the economists and business people are right about this being good for America, I'm missing something.  I just don't know what it is.  So . . . especially if you're one of those economists or business people supporting this kind of economic transaction for America, keep reading!

I'm willing to admit it if I'm wrong.  And I'm not looking to do this on the same scale.  Let's take a bunch of 0's out of the equation.  If you want to prove me wrong, here's how it works:

1. As 'America,' in this experiment, you send me $17.00 (US dollars only).  I'll be glad to send you my name and address if you e-mail me.  If you want to take care of this online, just send it through PayPal.

2. As 'India,' in this experiment, once you send me your $17.00, I'll promptly send you $7.00 (US dollars).  If you sent yours through the mail, I'll do the same; if you use PayPal, I'll return the favor.  Honest.  I'll really do it.

3. Let me know how this has improved your 'bottom line' and I'll put your comments on the website.  Any comments to the contrary will also be posted.

4. If I'm totally wrong about the whole thing and find I'm getting 'ripped off,' I'll gladly - and publicly - admit it here online.

Now, quite frankly, if any of you decide to do this, I'll tell you that I expect you to end up on the short end of the stick. I think you'll be out $10.00.  And, quite frankly, I'd expect to come up with $10.00 I could definitely use right about now.  It'd probably go to some extravagance like health insurance, one of my 7 daily prescription medications, or (how indulgent!) my mortgage payment.  My anticipated result is that I would make money and you would lose money.  No kidding.

That's honest, isn't it?  If I'm wrong, this will be the shortest experiment in history.  After all, I'm broke and can't afford to go in the hole.  If I'm wrong, we can prove that the MBA's know what they're doing and America is on the right track.  Won't that be a relief?

Frankly, I don't think you'll take me up on this.  Still, if that's how we're doing business in America (and current business trends tell me that it's true), I could just be wrong about that.

By the way, I've given you full disclosure here.  If you participate, you know the score and must accept full responsibility for your actions.