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An important strand, if we credit the CW with any conection with reality (which is open to debate) is that the one arena where the US model[] shines is "corporate services."

Now, I don't understand what "corporate services" are really, so I'm off to read the links. If anyone already knows, please enlighten me!

[] One other thing this highlights is that despite the rhetoric and the awful state of parts of the UK's social provision it still sits much more towards a European model than a US one. It's time we accepted that part of the US model is just related to having a honking great country to play around in.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Aug 30th, 2006 at 12:34:27 PM EST
Doh, don't use an asterisk as a footnote marker, otherwise you get odd bolding activity in your comment!
by Metatone (metatone [a|t] gmail (dot) com) on Wed Aug 30th, 2006 at 12:35:09 PM EST
[ Parent ]
Aha!


D. Corporate Services
1. Back Office / Call Centers

This industry includes any business support operation that interacts primarily through electronic communication. Typical operations would include inbound call centers (e.g. customer enquiries, internal helpdess), outbound call centers (e.g. telemarketing, teleresearch). IT/data processing, and other admnistrative functions. Back office/call center operations may be subsidiary operations of a parent firm, or may be outsourced to an independent service provider.

So, the US model is really good for shifting the economy from competitiveness in activities such as manufacturing and R&D towards call centres.

Not really sure what to make of that.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Aug 30th, 2006 at 12:43:15 PM EST
[ Parent ]
I was just typing that answer to your comment.

Yes, the US advantage is at entry-level labour costs, meaning they have a low minimum wage that isn't always respected.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Aug 30th, 2006 at 12:45:13 PM EST
[ Parent ]
Supposedly India is pulling in a large amount of corporate service type activity from both the US and Europe. I would think it would be necessary to include them to get an accurate global picture.
by Richard Lyon (rllyon@gmail.com) on Wed Aug 30th, 2006 at 12:50:44 PM EST
[ Parent ]
Well, Singapore is included in the KPMG study for the first time.

But frankly, I think we know there are lower costs elsewhere in the world. The main interest here is to see that the usual narrative about US/UK economies doing it right and Eurozone economies doing it wrong is shown to be BS.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Aug 30th, 2006 at 12:56:33 PM EST
[ Parent ]
The running argument between the US/UK and the Eurozone while the Asian foxes are cleaning both hen houses is quaint.
by Richard Lyon (rllyon@gmail.com) on Wed Aug 30th, 2006 at 01:00:07 PM EST
[ Parent ]
So what do we do? Look at the huge disparity in labour costs and do what?

Actually, I don't think there's anything quaint about the "running argument". It still seems to matter a lot to the US/UK side who keep their think-tanks, pundits, and media at work on it...

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Aug 30th, 2006 at 01:09:35 PM EST
[ Parent ]
I think that the reason the various spinmeiters like to focus on it is because they have no idea what to do about the real imbalances that are developing and those imbalances for the most part are serving the interest of the multi-nats who fund think tanks. Turning the whole thing into a sports contest is very useful for diverting the attention of the masses from the state of the emperor's nakedness.

It seems to me that facing reality is always a good place to begin.

by Richard Lyon (rllyon@gmail.com) on Wed Aug 30th, 2006 at 01:17:33 PM EST
[ Parent ]
I'll be content, at least for this diary, with facing one aspect of reality...

I don't quite see how your point holds: if the think tanks are funded by corporate interests that make hay out of the world labour glut, (and I agree they are), then I don't think they focus on the "Anglo-Saxon v Eurozone" issue out of sheer bewilderment, as in "they have no idea what to do". Either they are simply using the "Anglo-Saxon model" issue as a smoke screen (that would be your second interpretation), or the issue has substance. This particular drum has been banged for so long and with such insistence that I have difficulty with either the bewilderment or the smoke screen view.

Unless you're separating "spinmeisters" from "think tanks"?

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Aug 30th, 2006 at 02:51:57 PM EST
[ Parent ]
The economics establishment which is the think tanks and much of academia are like generals always planning to win the last war. All of their "free trade" orthodoxy is focused on what they THINK would have mitigated the impact of the great depression. Anybody who suggest that the realities in today's world might be fundamentally different is a heretic. That's probably equal parts of delusion and spin.

I think that it is inevitable that the economic power balance of the world has to be rearranged by the abilities and energy of a couple of billion people in Asia. They simply will not be shut out from a world economy that has been run almost entirely by Americans and Europeans. I think it might be possible to manage the transition in a way that reduces the inevitable disruption to the lives of ordinary people. By not discussing the reality we are missing any possible oportunities to do this. Instead we are rehashing the arguments that might have had some relevance 50 years ago.

by Richard Lyon (rllyon@gmail.com) on Wed Aug 30th, 2006 at 03:23:50 PM EST
[ Parent ]
I don't dispute the main point about Asian economies (though my impression is that it's the Western corporate world that is calling them in rather than "They simply will not be shut out"). But saying this doesn't mean there are no other issues of substance elsewhere.

And, you know, your dismissal of a very considerable propaganda machine as the work of a bunch of defeated generals re-fighting the war before last, and of arguments concerning American (would-be) hegemony and the EU as 50-year-gone maybe relevant, seem to me to take airy wing above reality.

But, as you see no interest in the topic presented above, we'd better just agree to differ.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Aug 30th, 2006 at 04:39:53 PM EST
[ Parent ]

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