Friday, February 15, 2008

A Perfect Example of Why Globalism Sucks

I found this article, about Boeing setting up a joint defense manufacturing company in India with Tata Industries. Now before I go into my rant, first I'd like to say that I've met with Tata representatives before, and they were cool people who knew their products and markets well. In my brief encounters with them I was impressed that they didn't over promise either. So, this rant isn't targeting Tata or India. First, the article.

Tata/Boeing Joint Venture

Essentially Boeing is going to build manufacturing and R & D facilities with Tata in India. So in my opinion what does this do?

1) In passes on to India numerous defense technologies that were developed by Boeing but paid for by U.S. Taxpayers. India saves billions on R & D.

2) Boeing begins to manufacture parts in India that normally where manufactured in the U.S., making their aerospace products "cheaper". But what about the U.S. workers who funded the technology and now loose out on the chance to manufacture what they funded?

3) Boeing ultimately looses, because it is building its competition. Tata is by no means a slouch of a company, once they build up indigenous capabilities the need to partner with Boeing will slacken. India's defense establishment will by indigenous Tata produced products, where previously Boeing's technical lead would encourage India's military to buy Boeing products.

So essentially, we give away technology, build up our competition, and outsource out production. We see this all the time. How can this country continue to be a super power operating this way? As more and more of our people become unemployed, the tax base lessons, and their is less money to keep funding R & D innovations. We see temporary relief by Tata made F-18's costing our government less, but long term economic problems such as the middle class disintegrating are not addressed. So is that how we are going to roll? Produce nothing, buy everything cheap from other nations? Something tells me that this ultimately isn't going to work, especially as we run out of money to but because we don't produce anything anymore. A good job becoming managing a Kroger as opposed to manufacturing a plane.

Boeing, your executive team are idiots. But how can I blame you? Our MBA schools are nothing more then brainwashing camps instructing our leaders of tomorrow all about the short term gains of global outsourcing without concentrating an ioda about what the long term effects of that outsourcing will be.

America's future is bleak if we don't realize we are giving away the store.

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