Outsourcing: Good for America?
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From: richmond
it's great for all the replies.
I think part of outsourcing is that it helps trim the sectors that have too many people. Back in the late 90's, It was where the action was. People decided to go to college learning that trade. well, now it is 4-5 years later, and these people are coming out looking for a job. So we have in influx of IT people looking.
Companies can no longer afford to pay the high amount in salary that they once commanded. so naturally, outsourcing.
In the end, i believe outsourcing is great for the economy in the long run. people who lost their jobs will reskill themselves and find better jobs.
I think part of outsourcing is that it helps trim the sectors that have too many people. Back in the late 90's, It was where the action was. People decided to go to college learning that trade. well, now it is 4-5 years later, and these people are coming out looking for a job. So we have in influx of IT people looking.
Companies can no longer afford to pay the high amount in salary that they once commanded. so naturally, outsourcing.
In the end, i believe outsourcing is great for the economy in the long run. people who lost their jobs will reskill themselves and find better jobs.
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From: City
Outsourcing is what wtupid people do because everyone else is doing it. Kind of like Java for every application. If you really think out-sourcing is good in the long run, you are sorely mis-informed. People don't magically "reskill" themselves. That training needs to be paid for, either by government programs or by the worker - companies train, but they rarely pay a new hire to go get a degree ina new field, and some people went to school for a job they wanted, not just a "any job wil do."
If you spent $50K on a college education, and now cannot get work because Indian workers work for lower wages and no benefits, with no Social Security tax or unemployment insurance, what do you use for money to pay off your student loans, so you can get new loans to get a degree in an unrelated field? It never ceases to amaze me that people can put together a proper sentence, yet fail to grasp that magic doesn't happen in other people's lives, just because it would be convenient.
US steel companies pay benefits to their workers, as well as a livable wage. Foreign companies don't pay benefits or any taxes, depending on where they are located. Those US benefits and taxes are added into the price of steel. The only way for American companies to be able to compete with Chinese makers on price alone is to pay workers Chinese wages, and give no benefits. Who wins there? So an American-made car is slightly cheaper. But all US steel workers receive welfare, since Chinese wages won't buy much more than a loaf of bread in the US. When a family member of a US steel worker gets sick, they either just die, or receive medical care provided by state assistance programs. The money comes from somewhere, and now it isn't coming from the steel consumer, but from the people who make enough money to pay taxes, which will naturally go up to pay for all the steel workers who need financial and medical asitance. Yeah, go Chinese wages!
As long as people fail to think things through, and just accept a very superficial viewpoint, this country will decline. American business has far too many idiots sitting in management positions. Having an MBA only means you went to school, it doesn't mean you learned anything useful, obviously.
If you spent $50K on a college education, and now cannot get work because Indian workers work for lower wages and no benefits, with no Social Security tax or unemployment insurance, what do you use for money to pay off your student loans, so you can get new loans to get a degree in an unrelated field? It never ceases to amaze me that people can put together a proper sentence, yet fail to grasp that magic doesn't happen in other people's lives, just because it would be convenient.
US steel companies pay benefits to their workers, as well as a livable wage. Foreign companies don't pay benefits or any taxes, depending on where they are located. Those US benefits and taxes are added into the price of steel. The only way for American companies to be able to compete with Chinese makers on price alone is to pay workers Chinese wages, and give no benefits. Who wins there? So an American-made car is slightly cheaper. But all US steel workers receive welfare, since Chinese wages won't buy much more than a loaf of bread in the US. When a family member of a US steel worker gets sick, they either just die, or receive medical care provided by state assistance programs. The money comes from somewhere, and now it isn't coming from the steel consumer, but from the people who make enough money to pay taxes, which will naturally go up to pay for all the steel workers who need financial and medical asitance. Yeah, go Chinese wages!
As long as people fail to think things through, and just accept a very superficial viewpoint, this country will decline. American business has far too many idiots sitting in management positions. Having an MBA only means you went to school, it doesn't mean you learned anything useful, obviously.
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From: Zionsville
IT industry, I mean come on. I get paid a ton of money to push buttons all day. We're the ones that drove up the salaries of IT professionals back in the late 90's.
I don't think we have anyone to blame, but ourselves.
I don't think we have anyone to blame, but ourselves.
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From: Signal Hill, SoCal
Outsourcing is not always about saving a buck or sweatshops. The retired CEO of Western Digital was a professor of mine and he said they outsourced to Singapore in the early 90's because of the other benefits.
Singapore decided they wanted to become a high tech country so the government dumped tons of money into training engineers and technicians and building all the other infrastructure needed. Singapore then gave generous corporate income tax breaks as well for the first few years.
Only about $1 of the $75 dollars needed to make the harddrives (in the early 90's) was actual labor cost. But the very deep talent pool of potential employees and the tax structure was too nice to pass up.
Singapore decided they wanted to become a high tech country so the government dumped tons of money into training engineers and technicians and building all the other infrastructure needed. Singapore then gave generous corporate income tax breaks as well for the first few years.
Only about $1 of the $75 dollars needed to make the harddrives (in the early 90's) was actual labor cost. But the very deep talent pool of potential employees and the tax structure was too nice to pass up.
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From: Doh!!
I'm not saying this will help stop the outsourcing but it'll slow it down a little.
Part of the high cost of US labor & products is the stupid product liability insurance and protection against frivolous lawsuits. I think the lawmakers should think about legislating new laws protecting manufacturers from these vultures but most of the lawmakers are in these vultures back pocket.
Part of the high cost of US labor & products is the stupid product liability insurance and protection against frivolous lawsuits. I think the lawmakers should think about legislating new laws protecting manufacturers from these vultures but most of the lawmakers are in these vultures back pocket.
