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At least on some jobs, we are now reaching equilibrium on the pay scales. Thats probably part of the reason that manufacturing jobs are increasing in the states again.
We have not gotten even close to pay equilibrium yet. The average Chinese industrial wage is literally $0.87 per hour. Yes, the average US worker is more productive then the average Chinese and locating in the US saves on transportation costs but the reality is we are not 9-12 times more productive then the Chinese so it will be next to impossible to compete with that.
You'll also notice that China maintains massive trade barriers in the form of tariffs and import restrictions plus they refuse to allow their currency to float on free market demand and instead peg it so that it is competitively devalued. If the Chinese do that then we the hell can't we? America used to and that's who we built this country behind a wall of sky high tariffs.
If I was a CEO and my COO demonstrated that greater profits could be had allowing better success and expansion of my business if we manufactured overseas I'd do it in a second.
Outsourcing is real and it must be stopped, hundreds of thousands of American jobs are being sent overseas every year in order to better the lives of people in other countries. Many Americans are suffering because they are getting laid off due to the declining economy, then being forced to accept a pay cuts apon finding another job. Should we not worry about the American people first and foremost before worrying about others over seas? What are your feelings on this?
It's way too late. You can't "undo" globalization.
Exactly like most concepts as long as it's economically viable it will continue.
The problem is this; most corporations have change their relationship with American workers. But American workers haven't changed their relationship with American corporations.
Here's what I mean. It used to be that corporations saw employees as an asset. They INVESTED IN YOU, they were LOYAL TO YOU, they expected you as an employee to APPRECIATE IN VALUE as your career progressed in the organization.
The relationship started to change in the early 1990's with massive layoffs. Once companies realized they could be profitable and efficient with fewer workers there was no turning back That is the beginning of workers being treated like COMMODITIES. A commodity has value based on how it can be used and the market that it's in based on supply and demand. Corporations began to look at workers on the bases of WHO DELIVERS VALUE. If you could deliver VALUE based on what you do that is YOUR JOB SECURTY. Globalization adds a further dimension, you value is now compared to workers across the world instead of American workers.
As an American if you want to survive in this environment then:
Get educated and get skilled in fields where you can deliver quality and value to a corporation in a way the differentiates you and somebody else and in cases someplace else.
All jobs are temporary. That's the reality. The days of working for twenty or thirty year for the same employer are OVER. Your job security is based on your ability to deliver value and QUALITY. Use QUALITY to differentiate yourself from others. Remember YOU ARE IN GLOBAL COMPETITION. Just remember whether you work as a contractor or as "full time employee" when a corporation comes to the point you no longer deliver value for the money you are gone.
Make yourself flexible and marketable. If you can work in several different fields or with several different employers on a contract basis the better off you are. Your skills and your abiliity to market them are your income security. Forget about JOB SECURITY focus on INCOME SECURITY. If you can develop multiple income streams so much the better.
Be entrepreneurial in reality you are now in business for yourself even if you are "employed" by somebody else. Deliver a quality product that warrants repeat business.
I do not agree with this. We can undo the bad trade deals and reimpose tariffs like we used to have to protect jobs. It only takes the will and political support to do it. I would love to see these trade deals put to a popular vote.
Sure, it took many years to get us into this economic mess and it will likely take years to get out, but me must start somewhere or continue the decline. I for one don't want to work for 3rd world wages, but if trans-national companies have their way, we all will be.
You sound like Herbert Hoover after 1929. That's EXACTLY what he did and other countries threw up tariffs and the next thing was we got in a trade war and demand for American exports plummeted and that is a guaranteed job killer.
The key to being successful in a globalized economy is to EMBRACE COMPETITION and DIFFERENTIATE YOURSELF FROM THE COMPETITION IN VALUE and QUALITY.
Correct..but that profit does not come into play unless someone BUYS their goods.
As long as Americans keep buying the foreign made goods, the companies will continue to use offshore labor. They have no economic reason NOT to.
Now, if Americans saw "Made in China" and put it back on the shelf that would indeed cut into profits. That is the only way to fight back..do not buy the goods. Simple supply and demand.
It can even be done on the food level.
But I am one person and I don't even make a ripple in a company's bottom line. But I do feel good about sticking to my principle of not shopping at Wallymart and buy American first.
What you fail to mention is that Americans are not the only one's buying these goods. A significant number of American corporations now derive more of their revenue from outside the United States than they do from the here.
Many people haven't changed their thinking. It's NOT all about the United States anymore. We are no longer the dog that wags the tail. The biggest reason more of the world didn't suffer a serious recession is that emerging nations had economies strong enough to drive exports from other countries.
I think we need far more corporate regulation. Wal-Mart has destroyed so many small town businesses with the resulting damage to regional economies I would have found them guilty of damaging the US and have pulled their corporate charter decades ago. The American people have been forced to buy imported junk because off shoring has diminished their wages so much that people that once shopped Nordstrom’s could no longer afford it.
America is certainly about making all you can so long as you were a member of investor class to begin with. When only one in twenty plus attempts to “make as much as you can” result in bankruptcy and the loss of original investment it is the American road to poverty.
Like the biggest of the big, I want a guarentee of sucess before I risk my money on any business venture. Once burned is all the lesson I need to stay away from the "American way to poverty."
Anybody can be an investor. I can open up a window on my browser right now log into a brokerage account and enter an order to buy some stock. There is NOTHING separating you from the "INVESTOR CLASS" other than your own willingness to learn what it takes to succeed and your ability and willingness to risk putting money into the financial markets.
As far as it being the "Road To Povery" quite frankly if you are good at what you do you win and if don't you lose. It's ALL on YOU.
There is more to outsourcing than lost jobs and more profit
Quote:
Originally Posted by Ellwood
Unfortunately the cost of benefits (especially health care) in the US has increased tremendously and firms outsource because it is cheaper. When firms outsource they don't have to offer 401ks, pensions, health, tuition assistance, etc. Also the demands of labor unions has increased costs in the US.
I agree that jobs should remain in the US, but until the government imposes higher taxes on those companies who are outsourcing, they will continue to leave the US.
I, for one, am tired of trying to understand someone on the telephone when I need technical help or even making an appointment with Sears to repair a piece of equipment.
The quality of products made is not equal to the US standards, but in order to keep competitive and make a bigger profit, they will continue to outsource.
With the high unemployment rate in the US, people are limiting their purchases to necessities, so therefore consumer spending is extremely low. No jobs, no buying power.
Good Post - Most American companies are not simply shipping jobs overseas because they are un-American, anti-jobs or greedy. Businesses exist to make a profit -- which is something that anti-business legislation, more regulations and higher taxes unnecessarily reduces.
More of the same is not working; ... Chinese, Mexican, Indonesian and Indian countries are employing foreign workers to make products sold to Americans; ... while investing less in infrastructure or paying taxes.
It's time to seriously start getting answers from business (not government bureaucrats) about how to stem the flow of jobs offshore. Toyota and other 'foreign' auto manufacturers have moved major operations to the U.S. and are still able to compete effectively with the Big Three while making a profit. -- I don't pretend to have all the answers, but something is wrong with this picture!
What you fail to mention is that Americans are not the only one's buying these goods. A significant number of American corporations now derive more of their revenue from outside the United States than they do from the here.
Many people haven't changed their thinking. It's NOT all about the United States anymore. We are no longer the dog that wags the tail. The biggest reason more of the world didn't suffer a serious recession is that emerging nations had economies strong enough to drive exports from other countries.
You're right about the multi-nationals but there is still the small to medium business that have to compete with those multinationals yet they are too small to offshore.
That's where I try to spend my money to keep my money here in the US and sometimes even keep it here in my local community.
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There is more to outsourcing than lost jobs and more profit
