Monday, May 24, 2010

What do you think about outsourcing American jobs overseas?

What goes around, comes around? When third world countries develop middle classes, they will be importing more American products -so does everyone win with outsourcing? . Or should we fight to keep as many jobs in the US as possible? And, why?

What do you think about outsourcing American jobs overseas?
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Reply:While I hate the whole idea of moving jobs out of America to third world countries, I do understand the reasoning. For example many companies are moving their call centers overseas. Let's face it these jobs are becoming harder and harder to fill here in the States. People are simply tired of sitting in a cubical getting paid poorly to more often than not be treated poorly.





In addition, perhaps these countries will see an improvement in their own situations by these companies offering jobs. However, the companies should have the best intrest of employees at all times and not just the employees in the States. The goal should not simply be to save money, but also to improve the lifestyle of the people in these poor countries.
Reply:When I graduated from college about 20 years ago, everyone was terrified that all our jobs would go to Japan and our country would have nothing. Some jobs went to Japan, but less than people thought. Japan started buying more of our stuff. Eventually, it all evened out pretty well. The US actually does better than Japan most years.





The same thing happened with Mexico, which people seem less worried about now. China and Indonesia are worries right now.





Here is a good way to look at it. You want to buy something, and two companies offer it. One company makes some decisions, and offers you the product 10% cheaper. Which company are you going to buy from? Answer: The cheaper one, if the quality is as good or better.





So, if a company can do something cheaper, they should do it. It helps them, it saves you money. They are stupid not too.





If you've ever tried to move jobs overseas, it is a lot harder than you think. Training, language, hidden costs (different labor laws, problems with government issues, etc), timezones, all make it more difficult than you would expect. So, not all jobs will move over. But enough will to save significant money for you and me. And, it is a good thing, in the long run.
Reply:I think it's rediculous! Why should American companies have the support of the American public when they do what they can to hire people in poor nations at a very minimun wage if that's even the case anymore, then mark up their product 400% to the American public. At least at Walmart the products may be purchased or made outside of the country but I'm not lining the pockets of the fat-cat billionaire who won't save the jobs here in America and the prices are reasonable.
Reply:Thanks for a very good question.





Look at the big picture.. it is not feasible for everyone in the US to become a brain surgeon, high finance officer, airline pilot, or politician.





The majority of the populace needs lower paying jobs in the $5 to $50 an hour range.





If all these lower paying jobs are sent overseas a person can either be a lowly garbage collector or overpaid highly educated brainiac.





The truth is it is unsustainable and a severe market correction will prove it.





Does this help anyone understand the current American anxieties?

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