Re: Does Outsourcing Piss you off?

nospam wrote:

If A and B can employ comparative advantage to work together, if C and D
come into picture providing cheaper products than A the A can find itself
out of trade.

A is the CEO, B is the hard-working American worker, and C and D are
those Indians. The CEO and the American worker are trading wages for
services. Along comes the Indians and offers the CEO more service for
less wage. American worker is left in the cold.

But suppose C and D is a machine. The CEO employs the American worker
to produce Fords on an assembly line. All of a sudden the CEO (who
happens to be a scientist as well) discovers robots that promise to
make better cars for cheaper. CEO replaces worker with robots. Worker
loses jobs.

Both cases are economically identical.

To oppose outsourcing on economic grounds is to oppose any
technological improvement since outsourcing is nothing but a
technological improvement.

.