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Personal Rant: Outsourcing: 2/15/2016 18:54:37


Von Jewburg
Level 35
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Note, this is somewhat of a ripoff of Martian Rants. Just me instead.

I understand the need to outsource, but its gone too far in the US.
Many people, even my brother, lost a job to outsourcing. And when many products are now being made halfway across the world, not everyone in the US can just find another job.
And when you see sometimes who's doing this work, especially in the garment industry, you're seeing similar parallels between these nations and the US in the Industrial Revolution.
Now you can argue, "well it's cheaper". Well here's the thing. The US was seen once similar to China: a rapidly building nation which is making large numbers of products. Then the US started outsourcing. Is it honestly that much more expensive to keep a business in the states than have to ship your products across oceans?
I understand the need for a free market, and I like the idea of a free market. But sooner or later, the outsourcing cycle will continue on and on. And in probably 1-200 years, China may face a similar problem.

Although I think companies shouldn't be under huge government restraints, just moving 500,000 jobs from overseas to here could make a big difference.
Personal Rant: Outsourcing: 2/15/2016 18:58:58


GeneralPE
Level 56
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just lower corporate tax and minimum wage. That would solve every problem you list.
Personal Rant: Outsourcing: 2/15/2016 19:03:02


knyte 
Level 58
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It's how markets evolve when you take out trade barriers. Consumers want cheaper garments, so they get them. Yes, people lose their jobs but that's because they were failing to be competitive; in the long term, this is good for everybody because it pushes markets to focus on what they've got a comparative advantage in. The US isn't able to beat China at making "Made in China"-quality goods- but we don't need to compete with them there, because we've got comparative advantages in other fields (massive ones, in fact) + markets produce more utility when everyone focuses on what they've got a comparative advantage in.

If consumers feel that they get more utility (or a better cost arrangement) from Chinese textiles than American textiles, you've either go to convince them they get more utility from American garments (by selling patriotism, probably, or an opposition to Chinese labor policies) or simply give up the fight and instead join a fight you've got a shot at winning.

It's not the 1960s anymore- as a culture, we've bought into the idea that if you just check off the right boxes you'll be set for your career. That's nowhere near the reality now.

lower corporate tax and minimum wage


Yeah, that's one way to bring us closer to having a comparative advantage in fields that we're no longer competitive in. But obviously it has economic repercussions elsewhere + non-economic repercussions that probably make far from viable politically.

Or people could stop learning obsolete skills just because they worked in the past.

Edited 2/15/2016 19:04:50
Personal Rant: Outsourcing: 2/15/2016 19:05:19

Luna {TJC}
Level 56
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Personal Rant: Outsourcing: 2/15/2016 19:20:57


[AOE] JaiBharat909
Level 56
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Next source of outsourcing (its already happening) is the STEM field. H1B1 visas are being given away like candy to Chinese and Indian students.

http://www.brookings.edu/research/papers/2013/05/10-h1b-visas-stem-rothwell-ruiz
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