Reply #37: The World is Simple [View All]

http://www.321gold.com/editorials/bonner/bonner121205.html

The Daily Reckoning PRESENTS: Bill often mentions that he makes a point to read Thomas Friedman's NY Times column - not because agrees with the imperial columnist's musings... but because he finds that that Friedman's "hollow thoughts" always seem to brighten his day with their absurdity...

The force of a correction is equal and opposite to the deception and delusion that preceded it. Alan Greenspan, George W. Bush, and all the great nabobs of positivism assure us that there is nothing to fear. Our favorite imperial columnist, Thomas L. Friedman of the New York Times, explained that "the next big thing almost always comes out of America . . . . . . America allows you to explore your own mind."

Friedman believes the world would be a better place if America were more aggressive about "empowering women" and "building democracies." He also thinks that technical innovations give America a permanent advantage. Americans are always innovating, always figuring things out. Heck, we even invented outsourcing, says Friedman:

"This is America's real edge. Sure Bangalore has a lot of engineering schools, but the local government is rife with corruption; half the city has no sidewalks; there are constant electricity blackouts; the rivers are choked with pollution; the public school system is dysfunctional; beggars dart in and out of the traffic . . . and so forth.

Among the things Mr. Friedman seems to lack is a feeling for verb tenses. He goes to Bangalore and notices that it is backward. His conclusion is that it will always be so. "Is" is forever in Friedman's mind. "Will be" has no place. It is as if he looked at the stock market in 1982. "Stocks are cheap," he might have said. "Stocks elsewhere are expensive," he might have added, without it ever occurring to him that they might change places. And yet, why else would anyone outsource work from Baltimore to Bangalore unless Bangalore was relatively, though not necessarily permanently, cheaper? Let us imagine that Bangalore had no electricity blackouts or pollution or beggars. Let us imagine that it was like Beverly Hills or Boca Raton. We might just as well imagine that stocks were expensive in 1982. Of course, if they had been, there never would have been the bull market of 1982 to 2000. It is only because they were cheap in the past that they had the potential to be expensive in the future. And it is only because Bangalore is a Third World hellhole that it is cheap enough to take work away from overpaid Americans 10,000 miles away. Whether it will, neither Friedman nor we can know.

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