John Stossel - Outsourcing

Is outsourcing always bad thing? Find out.

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News & Politics

Tags:

• Outsourcing

[101zulu]

The only reason why their labor is cheaper there, is because the cost of living in those countries is much lower than it is here.

Paying someone in India 3 bucks an hour would be the same as paying someone here minimum wage.

They just have different purchasing power, 20 bucks in china might be 100 bucks here, which is why you can pay them "less". So there really is no difference, China's wealth has grown exponentially ever since there free market approach.

[adulby]

You are taught in econ 101 that specializing in trade and lowering oppurtunity cost is the best way a country profits. Do these people never take these classes...Or are they just asleep. I had to literally teach my 11th grade teacher a few weeks ago why outsourcing is good.

[Mezey5]

outsourcing frees up resources that can be used for more productive means. You don't need an American computer programmer wasting time on simple coding when he can get someone in India to do it, because he is much more capable he can do things much more efficiently then the Indian guy can, this is called Comparative Advantage.

[8bitsurrender]

i agree with libritarians in almost every point of view except outsourcing. one of the biggest flaws in the idea of not regulating outsourcing is that we're outsourcing jobs to countries like China where unions are illegal/unallowed. which is unamerican too! so basically in this new global economy we're trading our own freedom for another countries lack of freedom. eventually we're all going to be slaves, but buying cheap shit!

[UltraProle21]

@CCRider100 lmao you have no knowledge of economics whatsoever. "if they called in their loans...", their loans are called US treasury securities, which can't be "called in". the interest payments, redemption amount, and payment dates are set.

[CCRider100]

@101zulu - China's wealth has grown exponentially ever since there free market approach"

That is because of China's vast production, they are what America was say 60-80 years ago, ie they made products for the world and consumed less per capita. Is it any wonder that today, China basically owns the US, if they called in their loans (which they would not do), the US would not be able to pay and would have to either default or go bankrupt,

[Spjungen]

Here's the thing though: how USEFUL is that new job sitting behind a desk taking phone calls? Cuz that doesn't fix the trade deficit I'll tell you that right now.

We're in a situation right now where the jobs that contribute to exports are being lost overseas while only service jobs are being created in the states. We need to rebuild manufacturing somehow, and it's not going to be easy. Unions are gonna have to suck it up and let this country get back on its feet.

[CCRider100]

@ORACLE063 - Dont blame others greed for your situation, blame your greediness that caused it. You wanted $22 an hour to do a menial task and now your gonna lose out"

Funny you mention greed because Nike used that exact logic when they closed down their factory in one part of Asia (workers making 70 cents/hr) and moved it to another Asian country where they could pay the workers 27 cents per hour. Greedy fat bastards, how dare they want 2 bowls of rice per day, when one is enough.

[CCRider100]

People are idiots if they think "outsourcing' by itself will always result in lower retail prices. Sometimes yes, other times no. Many factors go into setting retail price, Brand recognition and perceived value being the two key ones. The empathsis has gone from the factory floor to the marketing room. Nike shoes made today for $7 in Indonesia still sell for $185 retail. The money to pay Tiger has to come from somewhere.