THE RICH,RICHER AND THE POOR,POORER 309 then,are in direct competition with millions competition with their counterparts abroad,who of routine producers in other nations.Twelve are often eager to work for far less. thousand people are added to the world's popula-By 1990,keypunch operators in the United States tion every hour,most of whom,eventually,will were earning,at most,$6.50 per hour.But key- happily work for a small fraction of the wages of punch operators throughout the rest of the world routine producers in America.' were willing to work for a fraction of this.Thus, The consequence is clearest in older,heavy many potential American data-processing jobs were industries,where high-volume,standardized pro-disappearing,and the wages and benefits of the duction continues its ineluctable move to where remaining ones were in decline.Typical was Saztec labor is cheapest and most accessible around the International,a $20-million-a-year data-processing world.Thus,for example,the Maquiladora factories firm headquartered in Kansas City,whose American cluttered along the Mexican side of the US border in strategic brokers contracted with routine data the sprawling shanty towns of Tijuana,Mexicali,processors in Manila and with American-owned Nogales,Agua Prieta,and Ciudad Juarez-factories firms that needed such data-processing services. owned mostly by Americans,but increasingly by Compared with the average Philippine income of Japanese-in which more than a half million rou-$1,700 per year,data-entry operators working for tine producers assemble parts into finished goods Saztec earn the princely sum of $2,650.The to be shipped into the United States. remainder of Saztec's employees were American The same story is unfolding worldwide.Until the problem-solvers and -identifiers,searching for late 1970s,AT&T had depended on routine produ-ways to improve the worldwide system and find cers in Shreveport,Louisiana,to assemble standard new uses to which it could be put (Maxwell telephones.It then discovered that routine produ-Hamilton 1989). cers in Singapore would perform the same tasks at a By 1990,American Airlines was employing over far lower cost.Facing intense competition from 1,000 data processors in Barbados and the Domin- other global webs,AT&T's strategic brokers felt icas Republic to enter names and flight numbers compelled to switch.So in the early 1980s they from used airline tickets(flown daily to Barbados stopped hiring routine producers in Shreveport from airports around the United States)into a giant and began hiring cheaper routine producers in computer bank located in Dallas.Chicago publisher Singapore.But under this kind of pressu re for R.R.Donnelley was sending entire manuscripts to ever lower high-volume production costs,today's Barbados for entry into computers in preparation singaporean can easily end up as yesterday's for printing.The New York Life Insurance Company Louisianan.By the late 1980s,AT&T's strategic was dispatching insurance claims to Castleisland, brokers found that routine producers in Thailand Ireland,where routine producers,guided by simple were eager to assemble telephones for a small frac-directions,entered the claims and determined the tion of the wages of routine producers in Singapore. amounts due,then instantly transmitted the Thus,in 1989,AT&T stopped hiring Singaporeans computations back to the United States.(When the to make telephones and began hiring even cheaper firm advertised in Ireland for twenty-five data- routine producers in Thailand. processing jobs,it received 600 applications.)And The search for ever-lower wages has not been McGraw-Hill was processing subscription renewal confined to heavy industry.Routine data processing and marketing information for its magazines in is equally footloose.Keypunch operators located nearby Galway.Indeed,literally millions of routine anywhere around the world can enter data into workers around the world were receiving computers,linked by satellite or transoceanic ber- information,converting it into computer readable optic cable,and take it out again.As the rates form,and then sending it back-at the speed of charged by satellite networks continue to drop,and electronic impulses-whence it carne. as more satellites and fiber-optic cables become The simple coding of computer software has also available (reducing communication costs still fur-entered into world commerce.India,with a large ther),routine data processors in the United English-speaking population of technicians Statesfind themselves in ever more direct happyTHE RICH, RICHER AND THE POOR, POORER 309  then, are in direct competition with millions of routine producers in other nations. Twelve thousan d people are added to the world's popula￾tion every hour, most of whom, eventually, will happily work for a small fraction of the wages of routine producers in America.' The consequence is clearest in older, heavy industries, where high­volume, standardized pro­ duction continues its ineluctable move to where labor is cheapest and most accessible around the world. Thus, for example, the Maquiladora factories cluttered along the Mexican side of the US border in the sprawling shanty towns of Tijuana, Mexicali, Nogales, Agua Prieta, and Ciudad Juárez—factories owned mostly by Americans, but increasingly by Japanese—in which more than a half million rou￾tine producers assemble parts into finished goods to be shipped into the United States. The same story is unfolding worldwide. Until the late 1970s, AT&T had depended on routine produ­ cers in Shreveport, Louisiana, to assemble standard telephones. It then discovered that routine produ­ cers in Singapore would perform the same tasks at a far lower cost. Facing intense competition from other global webs, AT&T's strategic brokers felt compelled to switch. So in the early 1980s they stopped hiring routine producers in Shreveport and began hiring cheaper routine producers in Singapore. But under this kind of pressu re for ever lower high­volume production costs, today's S ingaporean can easily end up as yesterday's Louisianan. By the late 1980s, AT&T's strategic brokers found that routine producers in Thailand were eager to assemble telephones for a small frac￾tion of the wages of routine producers in Singapore. Thus, in 1989, AT&T stopped hiring Singaporeans to make telephones and began hiring even cheaper r outine producers in Thailand. The search for ever­lower wages has not been co nfined to heavy industry. Routine data processing is e qually footloose. Keypunch operators located anywhere around the world can enter data into computers, linked by satellite or transoceanic ber­ optic cable, and take it out again. As the rates c harged by satellite networks continue to drop, an d as more satellites and fiber­optic cables become avai lable (reducing communication costs still fur￾ther ), routine data processors in the United Statesfind themselves in ever more direct competition with their counterparts abroad, who are often eager to work for far less. By 1990, keypunch operators in the United States were earning, at most, $6.50 per hour. But key­ punch operators throughout the rest of the world were willing to work for a fraction of this. Thus, many potential American data­processing jobs were disappearing, and the wages and benefits of the remaining ones were in decline. Typical was Saztec International, a $20­million­a­year data­processing firm headquartered in Kansas City, whose American strategic brokers contracted with routine data processors in Manila and with American­owned firms that needed such data­processing services. Compared with the average Philippine income of $1,700 per year, data­entry operators working for Saztec earn the princely sum of $2,650. The remainder of Saztec's employees were American problem­solvers and ­identifiers, searching for ways to improve the worldwide system and find new uses to which it could be put (Maxwell Hamilton 1989). By 1990, American Airlines was employing over 1,000 data processors in Barbados and the Domin￾icas Republic to enter names and flight numbers from used airline tickets (flown daily to Barbados from airports around the United States) into a giant computer bank located in Dallas. Chicago publisher R. R. Donnelley was sending entire manuscripts to Barbados for entry into computers in preparation for printing. The New York Life Insurance Company was dispatching insurance claims to Castleisland, Ireland, where routine producers, guided by simple directions, entered the claims and determined the amounts due, then instantly transmitted the computations back to the United States. (When the firm advertised in Ireland for twenty­five data­ processing jobs, it received 600 applications.) And McGraw­Hill was processing subscription renewal and marketing information for its magazines in nearby Galway. Indeed, literally millions of routine workers around the world were receiving information, converting it into computer readable form, and then sending it back—at the speed of electronic impulses—whence it carne. The simple coding of computer software has also entered into world commerce. India, with a large English­speaking population of technicians happy