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Old 12-25-2009, 04:45 PM
 
Location: Lafayette, IN
838 posts, read 867,222 times
Reputation: 391

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Quote:
Originally Posted by pommysmommy View Post
That would be nice if there were jobs. We have programs in El Paso to help workers whose companies have outsourced. Money is spent to send them for training in different fields. Guess what? Companies are not willing to hire people with no experience here in El Paso. I hired a newly trained employee four years ago and found a very good employee. I have hired newly trained employees the last three years and have had to fire them mostly for lack of work ethic. We no longer interview employees without experience in our field.
That is a problem, but the solution is not to simply try to stop outsourcing altogether as such an approach not only hurts economic growth for the entire economy but also hurts consumers (the majority) to help a small minority of workers. We need the government to implement a better set of policies to deal with such situations; we need to extend the amount of time workers can draw unemployment benefits and make the provision of those benefits contingent upon those individuals participating in programs that help to train them for new, more readily available jobs. We need to make it easier for those who are middle aged to go and get an education to make them more employable. We need policies to stimulate new, high-value added, high-tech industries and we need to tailor education and training programs towards those industries. Such an approach would improve the economic health and growth of this country by creating a more flexible workforce and a more diverse, high-tech industrial sector.
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Old 12-25-2009, 04:47 PM
 
Location: Lafayette, IN
838 posts, read 867,222 times
Reputation: 391
Quote:
Originally Posted by CAVA1990 View Post
Most of the jobs being outsourced are low knowledge/repetitive motion type functions. Companies are still paying good money here for people who think. The unemployment rate is still pretty low for those with college degrees. Around where I live it's probably less than 2%. At some point soon, we're going to have to consider paying welfare benefits for anyone without one.
As I just said in response to another post, we need to be much better at providing training programs to these types of individuals and also need to make it easier to go back to school to get an education. Our country isn't particularly good at facilitating the move from one industrial sector to another, but that doesn't mean we can't be! If your a low-skilled worker whose job gets outsourced you should be able to draw unemployment benefits while going through training programs or a 2-year degree program to acquire skills that will allow you to work in other areas.
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Old 12-25-2009, 04:48 PM
 
Location: Wiesbaden, Germany
13,807 posts, read 26,288,232 times
Reputation: 3987
ehhh, the last thing we need is the government doing anything... except protecting sensitive export-controlled items. They definitely do not need to try to "fix" anything.
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Old 12-25-2009, 04:56 PM
 
Location: Lafayette, IN
838 posts, read 867,222 times
Reputation: 391
Quote:
Originally Posted by rd2007 View Post
ehhh, the last thing we need is the government doing anything... except protecting sensitive export-controlled items. They definitely do not need to try to "fix" anything.
I really don't agree with this; we don't need direct involvement in the market in the form of trade policies, but we do need programs to help facilitate workers in moving between sectors in a rapidly changing economy as well as policies that can help stimulate growth in underdeveloped sectors that have high-potential for growth in this country and which have high-barriers to entry. Additionally, government investment in Research and Development is absolutely critical to maintain a competitive edge and high levels of innovation. For some industries, government investment in infrastructure may also be critical.

In a modern economy there is definitely a role for government. The assumptions underlying economic theories are stylized and merely an ideal type; they are rarely met in the real world. The further reality is away from these assumptions, the larger the market distortions are that arise. Even aside from this, externalities exist in virtually all markets. Government involvement can help correct market distortions and can 'capture' externalities, incorporating them into the market. Such things improve economic growth. The problem is not government involvement generally, rather it is that governments often implement economic policies for other reasons or with other goals in mind. Policies aimes at correcting distortions, incorporating externalities into the market and at the things mentioned in my first paragraph are all legitimate and, this is key, as long as they are properly designed then they can improve economic welfare.
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Old 12-25-2009, 04:57 PM
 
Location: Everywhere and Nowhere
14,131 posts, read 27,010,603 times
Reputation: 6824
Quote:
Originally Posted by rd2007 View Post
ehhh, the last thing we need is the government doing anything... except protecting sensitive export-controlled items. They definitely do not need to try to "fix" anything.
So you would gut the DoD and Homeland Security?
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Old 12-25-2009, 05:35 PM
 
1,317 posts, read 1,220,628 times
Reputation: 286
Quote:
Originally Posted by CAVA1990 View Post
So where's the list of foreign companies that have outsourced jobs to the U.S.? It's probably just about as long. Keep in mind we are better at running large enterprises so of course we're going to manage more of the world's business activities.
In my brain I have:
Mercedes Benz
BMW
Baretta
Glock
Nestle
Hyndai
Kia
Toyota
Nissan
Honda

I'm sure there's more.

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Old 12-25-2009, 06:09 PM
 
Location: Everywhere and Nowhere
14,131 posts, read 27,010,603 times
Reputation: 6824
Most economics I've heard addressing this topic have said it's a much less a problem than people perceive.
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Old 12-25-2009, 06:13 PM
 
9,881 posts, read 9,014,521 times
Reputation: 2874
Quote:
Originally Posted by CAVA1990 View Post
Most economics I've heard addressing this topic have said it's a much less a problem than people perceive.
Seriously? Many people in El Paso lost jobs when the jobs in Mexican maquilas moved to other countries.
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Old 12-25-2009, 06:27 PM
 
Location: Lafayette, IN
838 posts, read 867,222 times
Reputation: 391
Quote:
Originally Posted by CAVA1990 View Post
Most economics I've heard addressing this topic have said it's a much less a problem than people perceive.
For the reasons I've explained in my previous posts in this thread! The industrial sector accounts for less than 20% of the US economy and while outsourcing is awful for those employees losing their jobs as a result, it is beneficial for the economy as a whole since it reduces prices and increases consumer surplus. We stress about it because the losses accruing from outsourcing are highly focused and highly visible while the benefits, while larger in economic terms, are more diffuse and, as a result, less directly visible.


Most people really just don't understand economics so they don't realize that this is an expected, inevitable consequence of the capitalist system nor do they realize, because it is counterintuitive, that it is generally better for our economic welfare as a whole to allow outsourcing rather than to try to stop it.
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Old 12-25-2009, 06:31 PM
 
Location: Everywhere and Nowhere
14,131 posts, read 27,010,603 times
Reputation: 6824
Would you really want to do something the average Mexican can do? Get off your lazy butts and do something more productive.
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