Re:Where's India's domestic economy? (Score 3, Insightful)

Drugs-- $5.00 here, $0.10 there

In a normal capitalistic society, we would be allowed to buy the 10 cent pills there and import them here and resell them for 20 cents.

But the wealth here is literally being pumped out of the country- and the jobs too.

Sure! Do you really think that the $5.00 for your medicine is sent to the exporting company in india? Rubbish! In fact, in your scenario there will be at most 8 cent sent to india for the pills while $4.92 go into the pockets of your local pharma company.

Which will pay low wages to the few americans still on their balance sheet and move the remaining money to the managers. So the wealth is not pumped outside the country - it is just moved to the wealthy.

In real capitalism that won't be a problem since you could go and open up your own pharma company and sell the pills for 30 cents, pay 15 cents to the producer in india and still have a nice margin. BUT: Neither germany (where I live) nor the U.S. is implementing capitalism. There are just too many rules to stop new contenders from entering the market. And if a big company fails, the government will keep the dead body fresh by pumping the worker's money into it.