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I agree that the U.S. is not concerned for the masses. The problem is, our country, the U.S., is too focused on the bottom line and making money. That includes the government and especially the big companies. Their people are secondary. This is the inherent flaw, not outsourcing.
Yes, Ford might be outsourcing jobs but if they were more concerned with their people, who built the company for them, they would do more for them even after the payoff. Does the CEO and the top executives of the company really need the billions of dollars of income they receive on a yearly basis? How much money does a person need, really? I have lost everything a couple times. What I learned from it is that I didn’t REALLY need all the money I had. I was a non-typical business owner who was truly concerned for my employee. I took better care of them than 99% of the businesses out there. But, if I had given each of them even 20% of the cash reserves that I had before losing it, I would have changed their lives. Maybe some would have started businesses and didn’t need a job anymore. Maybe some would have had the confidence to get a position that paid double what I was paying them because they had just enough added motivation from the money I gave them.
Ford gave each employee the best deal for the company. The deal that affected the bottom line the least. That’s the wrong way to look at people. They hide behind financials that say the company is losing money. It’s losing money after the executives take their big fat pay checks.
The government is in the same boat. It’s the biggest corporation on the planet. They have set the tone for this atmosphere. They are more concerned with money than their own people. In 1994, the government seized on several million dollars from it’s citizens. But, the law changed the next year and they seized several hundred million dollars that year. Now, it’s in the billions per year. And, they brag about it. It’s disgusting.
Besides that, we have more people in prison that any other country in the world, 2 million. We have another 5 million on parole or probation. That’s more than the two notorious authoritarian states, China and North Korea.
Everyone in the U.S. has become a suspect or a non convicted criminal. It’s the same thing that caused the fall of the Roman Empire.
The point is, the people are not the concern of our country anymore. Outsourcing is not the problem. It’s the general attitude of our government.
This combined with the U.S. coming down on businesses non-stop by trying to extract more money from them or find things that they are “allegedly” doing wrong, is forcing them to move an environment that is more codusive to business. I think many companies say that it is because the labor is cheaper. But, I think in reality they are outsourcing because of the regulatory environment. It just wouldn’t be great PR.
I know that is why I am outsourcing now.
This isn’t something that is in the direct control of the average person in the U.S. But, it can be changed by them. If the people would join together to take a stand against the corrupt legal system in the U.S., changed could be made.
But, the machine is smart. They throw millions of distractions at the masses to keep them from gathering together to do something. It has been very well executed.
Even the discussion of blaming it on outsourcing is a brilliant deflection technique. They get everyone upset over jobs going overseas so that the countries getting the jobs get the grief from the American people while the U.S. Government gets to look like the hero because they are concerned about this outsourcing business. It’s beautifully executed. It’s a joke. The government created the environment that is causing the outsourcing.
I have just glossed over the subject. I could go on. But, I would love to hear comments.
This May Be the Best Kept Secret To Building A Stronger Domestic Economy
You may agree with the dozens of politicians who say that outsourcing is a problem and is dramatically eliminating domestic jobs.
I disagree and here’s why.
In 1999 I started outsourcing work to a firm in Venezuela, and did so with great success until late 2005. In the early years, my outsourcing was small; it eventually grew to such a large volume that I was forced to outsource work to Romania, Russia and India.
Presently, I send 99% of my work to India.
For every aspect of my new or ongoing business ventures, my focus is on outsourcing to India.
Now I won’t say that outsourcing hasn’t ever cost an American his or her job, but I disagree with the politicians that claim outsourcing is DESTROYING jobs. I’m not sure that these politicians actually believe that outsourcing destroys jobs. It’s more likely that they, (the politicians) think that voters believe this. They might even be right. If that is the case, it means that bad economics is really good politics.
Domestic job opportunities are not reduced by outsourcing jobs to foreign countries. Actually, quite the opposite is true. Higher paying domestic jobs are created by outsourcing. A promise to stop outsourcing by politicians is a promise to make our Country poorer.
Scarcity is what makes outsourcing work.
Our desire for more is unlimited, yet our ability to produce more IS limited. Outsourcing allows us to lower scarcity by letting foreign workers provide us with things that they can produce better and more cheaply than domestic workers can.
What about jobs that are being lost domestically?
Scarcity can ensure that there will be far more jobs we want done, than people to do them. It isn’t just the entrepreneurs that are better off getting more, with less effort, by outsourcing jobs. Outsourcing enables American workers to be freed up to produce new things. More people are able to work as nurses, teachers, medical researchers, musicians, writers and yes, even becoming an entrepreneur, developing new products and technologies that will release more people to produce even more goods and services.
There is a fundamental truth that must be considered.
“Some things have always been produced more cost effectively in other countries.”
This is true no matter how productive a country is. The concept of comparative advantage is the principle that applies here. A great example is Tiger Woods. Currently he is the world’s best golfer. You would probably never think it would make sense for Tiger to work as a caddy. Right?
But, he would make the best caddy ever. Who could give you better advice on which club to use and to how to line up a putt? But his opportunity cost as a caddy would be millions of dollars, money he would sacrifice buy changing from golfer to caddy. Being a golfer is the job in which he has a comparative advantage.
Just as Tiger is most productive as a golfer and earns a much higher income as a golfer, workers are the same. They earn higher incomes by specializing in the jobs where they are the most Productive. This is why free trade and job outsourcing increase wages and salaries. They create competition that directs workers into the jobs where they produce the greatest value.
Yes. Outsourcing and international trade will inevitably harm some by eliminating their jobs. We’ve seen this in the IT field in recent years. But this is usually temporary. There is always the class of older workers, (or people who refuse to learn new skills) that don’t find new jobs that pay as well as their old ones.
As hard as it is to accept, job loss is essential to economic progress. Changing technologies and preferences constantly increase the value produced in new jobs relative to old jobs. The best way to impoverish a country is by preventing the destruction of existing jobs. Workers threatened with foreign competition may want politicians to protect their jobs against that competition, but they would be worse off if all workers received that protection.
As long as politicians think the typical voter is economically illiterate, they will threaten our prosperity with proposals to restrict job outsourcing. Clearly, the best protection against such destructive economic policies is increased public understanding of basic economic principles.
The truth is; restricting job outsourcing is without a doubt – bad economics. And with visibly more economic literacy, it will also be bad politics.
