🚀 go-pugleaf

> The intelligent people in the US are investing in emerging markets.

No.
The people with investible *funds* are investing in emerging markets
through shares in global blue chips.
The majority of the population do not have this option. They depend on
their income from their jobs e.g. computer programming.

> The US is going to remain the #1 country for a long time because MOST
> of these very same companies you are outsourcing from are owned and
> funded by Americans. All the Indians are doing there is working and
> collecting thier sweat equity.

sweat equity :) interesting expression...

Sadly for the Indians, the same compelling business logic that has
made Indian software development attractive will very soon apply to
China and a number of other chep labour economies. In the usual manner
of these developments each cycle of supply and demand becomes shorter.
As software (and indeed everything else in modern life ) has become
commoditised, so it will inevitably find the place it can be produced
more cheaply than India in the same way it has found the place it can
be poroduced more cheaply than the  USA.

This is what free trade does.

> Intel,Microsoft, you name it and they're setting up WHOLLY owned
> subsidaries in India. Which means all those Fancy profits go right
> back to the US and your government gets the taxes on those profits.
> 
> The TV Industry is a perfect example of how the US lost out. The big
> US companies didn't outsource fast enough to other markets and lost
> out badly to Japanese brands because they were technologically
> superior and BETTER and cheaper too.

At the time that Japan was leading the world in innovation it was
doing so in such a way that it had destabilised its economy, hence the
eastern financial crash of the late 1990's. In addition Japan was
operating a set of implicitly tolerated type approval regulations that
protected their economy while allowing them access to western markets.
This situation is unlikely to be repeated as we are now in a unipolar
world and there is no longer any politival reason to subsidise nations
like Japan and Korea.

> HP and Intel are companies which didn't waste time and setup thier
> manufacturing plants in Asia. Now they're able to beat the Asian
> competition because they are producing better printers and CPU's at
> the same cost.
> The same thing is happening in software. US Companies are beating the
> competition because they are setting up research bases in India where
> they can get good quality at a very good prize.

Correct

> Don't forget that the US Market isn't the main market for most Big
> Corporations anymore. They sell FAR MORE in Asia and Europe than
> locally , but the profits still come back to the US, because you have
> the lowest taxes.

Wrong.
The revenue from foreign investments made by American TNC's stay with
the TNC. As much new investment is abroad and tax revenues are falling
*there is no benefit to the USA* from the growth of its large
international corporations.
Money made from Indian software development will probably either be
re-invested in India or go to opening similar operations in countries
with lower labour costs.

Corporate tax revenues have been falling in the US for some time and
continue to fall independently of growth.

http://www.themediamatrix.org/taxmobility.htm