The Outsourcing Debacle

There was a time not that long ago when Americans had jobs a plenty, wages were at least decent, and and the United States was the envy of the world in terms of good living.

That’s all changed now. Jobs are harder to come by, they pay less, and if it can be done cheaper elsewhere, it will be. Welcome to the era of outsourcing. On the surface the concept sounded reasonable: Cheaper goods translated into more profit for the outsourcing companies, and affordable goods for Americans. Those things have occurred. Many companies that have outsourced are making record profits, and consumers are getting goods that may have otherwise been, if not too expensive, more costly than they would have liked.

The problem now is that so many jobs have been outsourced, and with the threat of even more outsourcing hanging over American workers’ heads, that even cheap imports can’t entice consumers anymore. How is it that America could keep its jobs at home, pay the workers decent wages, and at the same time, the country grew prosperous? It’s really very simple. If you give Americans money, they will spend it, many times giving some of it back to the same companies they work for. There was a time when that Ford assembly line worker would buy a new Ford every few years. Or that checker at the department store would get his or her clothing at-guess where? Yes, the money flowed, and America prospered. Somehow, these MBA genius, Wall Street crooks either don’t get it, or don’t care. I’m inclined to think that it’s a combination of the two.

Sure, there will be the inevitable argument that outsourcing helps the developing countries raise their standard of living. Technically, that’s true for some, but downside of that, the slave labor, the low wages, is beyond the scope of this post. That’s beside the point. It’s not necessary to feed American jobs to various cheap labor markets in order for them to raise their standards. Most countries have some kind of comparative advantage, and gift wrapping American jobs just stunts the ambition and creativity that every country possesses to some degree. Like the illegal alien breaking their back in the fields, that kind of “good folks who want to work” mentality, stifles innovation. American workers are getting the back end of this beast. Instead of climbing the rungs of success, Americans are now holding on to what they have, not moving up and leaving their former jobs for the next up and comer. This country doesn’t need anymore unemployed, disenfranchised youths.

It is possible for the good times to roll again, and how to do that is another post, but in the meantime there is an economic stimulus package coming down the road. I don’t have much faith that if will help, but at the same time I hope I’m wrong.

Advertisements

About gravatar are data miners

gravatar are data miners. DO NOT get an account with these goons. You cannot delete your account. The email you give them will be ruined.
This entry was posted in America, economy and tagged , , , . Bookmark the permalink.

3 Responses to The Outsourcing Debacle

  1. kim murray says:

    I agree its true it healps the other countries but ITS TIME TO HELP OUR OWN ! ..OBAMA SHOULD USE SOME OF THE STIMULUS TO REWARD BUSINESS THAT STAY HERE, AND ALSO TO ENCOURAGE NEW BUSINESS TO REPLACE THE ONES THAT HAVE LEFT.. I ALSO THINK THE STIMULUS SHOULD GO TO THE PEOPLE AND NOT JUST THE BANKS AND SUCH AND NOT LIKE THE LAST ONE THAT WAS JUST HUNDREDS OF DOLLARS EACH.. THAT LITTLE ,PEOPLE SAVED OR USED ON BILLS STILL DIN’T HELP THE ECONOMY.. A GREAT IDEA WOULD BE 5,000 PER HOUSEHOLD FAMILIES UNDER 25,000 YR AND MIDDLE INCOME BRACKETS, 1,000 FOR SINGLES.. THAT WAY PEOPLE WOULD ACTUALLY HAVE MONEY TO PUT BACK INTO THE ECONOMY THEY WOULD HAVE THE MONEY TO BUY THE NEW CARS, GO SHOPPING ETC.. WHAT DO YOU THINK ?

  2. rjjrdq says:

    It’s sounds like a great idea Kim, but the problem is that this stimulus money is being borrowed, mostly from foreign countries, and eventually it needs to be paid back. That’s a lot of money destined to leave this country.

  3. goodtimepolitics says:

    I was reading earlier that Calif was getting $10 billion of it for their schools…how about the other States will they get any? I don’t see how that will help the job problems.
    Its going to get worst…Man kills wife, five kids, himself after being fired and this should tell the government that it better be working to make jobs and not just a spending package for a bigger government.
    http://edition.cnn.com/2009/CRIME/01/28/family.dead.california/

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s