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Old 05-07-2009, 04:04 PM
Rei
 
Location: Los Angeles
494 posts, read 1,600,432 times
Reputation: 233

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Quote:
Eventually, fewer customers will materialize in the host nation while the foreign country standards of living rises and it gets more costly. Furthermore at some point Mr. tax man realizes that profits and expenses aren't being taxed and they are losing out on tax revenues (from profits, incomes, etc.) and therefore creates tariffs and other barriers.
Exactly... With the outsourcing causing the unemployment rates to go up, we as a nation will have to pay for these UE bill. This will result in a tax increase on small businesses, then they will be forced to cut down and outsource more, and hence the whole downward cycle starts again.... We as a nation will sink deeper and be that one step close to bankruptcy.

India and China will get the last laugh....

So, to answer your question:
Quote:
Is outsourcing really that bad?
The answer is: in the long term it is...
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Old 05-07-2009, 04:04 PM
 
Location: The land of milk and honey...Tucson, AZ
302 posts, read 1,394,479 times
Reputation: 214
Outsourcing makes everything efficient. Some of the jobs in the US are outsourced to other companies that are also located in the US and the products that you buy very cheaply are made from outsourced labor abroad. So to say that outsourcing is wrong, just displays how ignorant you are.
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Old 05-07-2009, 04:09 PM
 
Location: San Antonio
10,148 posts, read 18,127,033 times
Reputation: 9868
I think it was Kruschev who said that if he were to hang The United States an American businessman would sell him the rope.

Traitors can always rationalize their actions, indeed there are businesses devoted to helping them do it.
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Old 05-07-2009, 04:39 PM
 
Location: Chino, CA
1,458 posts, read 2,898,182 times
Reputation: 546
Quote:
Originally Posted by Takes1 2 Know1 View Post
Outsourcing makes everything efficient. Some of the jobs in the US are outsourced to other companies that are also located in the US and the products that you buy very cheaply are made from outsourced labor abroad. So to say that outsourcing is wrong, just displays how ignorant you are.
Outsourcing within the US is fine, because in the most part regulations, laws, standards, etc are balanced. There isn't really a large labor arbitrage nor is there currency, forex, labor abuse. All the States work under OSHA, and other Federally mandated rules.

That is why in the past most of the manufacturing was done in the mid-west where costs where cheaper than the coasts. Uncle Sam still takes in the tax revenues through uniform federal income taxes. This kind of outsourcing where there is a level playing field results in "specialization" (which is the "efficiency" your referring to) and thus each State had certain sectors of the economy that they are better at (ie, agriculture in the central plains, and knowledge based activities in the population centers).

The outsourcing between nations is quite a bit different. What is being leveraged is the difference in rules, policies, and standards Not because inherently China or India is better at manufacturing or IT work. It's simply cheaper there because they are developing nations following a different set of rules. Because of this, things are actually "less" efficient. Does it really make sense to fabricate a part here, ship it overseas, build it there, ship it back, etc. etc.? Wow, efficiency

There's a reason why other "developed" nations such as Japan and Germany that play with similar rules as the US have factories here. It's actually more efficient.

-chuck22b

Last edited by chuck22b; 05-07-2009 at 05:06 PM..
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Old 05-07-2009, 04:42 PM
 
Location: Portland, Oregon
7,091 posts, read 10,487,344 times
Reputation: 4104
Quote:
Originally Posted by Irishtom29 View Post
I think it was Kruschev who said that if he were to hang The United States an American businessman would sell him the rope.

Traitors can always rationalize their actions, indeed there are businesses devoted to helping them do it.
Wouldn't you blame every American consumer as the traitor (including me and you)? Every time some one buys the cheaper option...where do you think that cost savings come from? Using that logic can you really buy a product today that won't get you hung for treason? There are very few products left where all parts of the operations and supply chain exist in the US...hand me a rope and be sure to have enough for yourself.

Well, I can think of two...Lodge cookware and Timbuk2...but it's pretty limited.
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Old 05-07-2009, 04:51 PM
 
Location: Great State of Texas
86,093 posts, read 69,881,813 times
Reputation: 27519
Quote:
Originally Posted by killer2021 View Post
If something could be done for 1/10th the cost of labor in another country and do just as good a job then we should send the job over there and use the money we saved to reinvest in the company or deliver better service to clients.
And if offshoring is so great, why not move there yourself and save even more ?
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Old 05-07-2009, 04:54 PM
 
Location: Chino, CA
1,458 posts, read 2,898,182 times
Reputation: 546
Quote:
Originally Posted by subsound View Post
Wouldn't you blame every American consumer as the traitor (including me and you)? Every time some one buys the cheaper option...where do you think that cost savings come from? Using that logic can you really buy a product today that won't get you hung for treason? There are very few products left where all parts of the operations and supply chain exist in the US...hand me a rope and be sure to have enough for yourself.

Well, I can think of two...Lodge cookware and Timbuk2...but it's pretty limited.
No one said Americans are smart . Only 30% of the population has a college education.

Furthermore, the segment of the population that outsourcing has affected the most are the ones with reduced incomes that in a sense have to go for the cheapest products. Their incomes or lack thereof requires it.

Likewise, as they outsource more "white" collar and any other job they can, everybody has to go for a "cheaper" product rather than what they prefer to get. Incomes fall when you outsource... what do you expect?

-chuck22b
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Old 05-07-2009, 05:44 PM
 
1,956 posts, read 4,677,050 times
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Quote:
Originally Posted by chuck22b View Post
No one said Americans are smart . Only 30% of the population has a college education.

-chuck22b
College education is absolutely no indication of intelligence. I've come across many, many people without degrees than people I've know who are college-educated.

That's actually one of the huge reasons we're in this economic mess in the first place - the push to have way to many kids in this country get a college education so they can get comfortable paper-pushing desk jobs that do little in terms of actual productivity. Everyone wants to be a paper-pusher, nobody wants to produce, because it's not "prestigious". Well, and then we have outsourcing...
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Old 05-07-2009, 06:31 PM
 
Location: Chino, CA
1,458 posts, read 2,898,182 times
Reputation: 546
Quote:
Originally Posted by StoneOne View Post
College education is absolutely no indication of intelligence. I've come across many, many people without degrees than people I've know who are college-educated.

That's actually one of the huge reasons we're in this economic mess in the first place - the push to have way to many kids in this country get a college education so they can get comfortable paper-pushing desk jobs that do little in terms of actual productivity. Everyone wants to be a paper-pusher, nobody wants to produce, because it's not "prestigious". Well, and then we have outsourcing...
I agree that college education doesn't really mean much depending on what you studied and how much you got out of it. I just wanted to push out a statistic.

Anyhow, the push for degrees in the last decades might be partially due to a lot of the "production" jobs leaving the country. I mean, most people get training, education, etc. in anticipation of "future" demand. In the most part we were told that America is a "service" economy as our production jobs went overseas.

As fewer white collar AND production jobs come about... basically people are puzzled as to what kind of education, training, etc. they should do. At the moment there is a huge push towards nursing, lawyers and other "face-time" jobs... but guess what... there'll be a glut that'll probably push down wages and continue the problem job/career search.

-chuck22b
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Old 05-07-2009, 06:49 PM
 
Location: Sherwood, OR
663 posts, read 1,606,282 times
Reputation: 658
Quote:
Originally Posted by killer2021 View Post
Eventually that will flip around. China, India and the middle east will start buying US goods and services. The US won't be consuming as much as we do as well, instead foreigners will be buying it and we will be using our money to pay our debts (instead of consuming).
Actually, I agree with your statement. Eventually we will bolster up the economies in other countries to the point where it will no longer be profitable to outsource there and they will be feeding our economy. But how many years until that happens and what do we do about the job loss until then? I have 20,000 former colleagues who want to know the answer to that question.
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