Re: Does Outsourcing Piss you off?


"nospam" <nospam@xxxxxxxxxxx> wrote in message
news:L9-dnUoVVfL7IZXZRVn-gQ@xxxxxxxxxxxxxx
Hi Jim,


However, at macroeconomic level the situation is different.
If too many businesses are actually doing it, the consumer income
decrease.

Jim Blair wrote:

Hi,

You are not being "macro" enough. Because of his better paying job, that
guy in India or China now has also become a consumer.

Mythology Jim. An US unionized worker making 45k/yr can afford to buy an
35k
SUV. If his job was offshored to China and the Chinese make 2k/yr the GM
is
not going to sell that SUV anymore.

Hi,

I agree that the Chinese guy is not likely to buy a US made SUV. But that
was not the question.
The fact is that they are buying US products, from Wisconsin gensing to
Kansas wheat to Boeing airplanes to Caterpiller tractors to Madonna CD's and
watching Hollywood movies.


Unless companies offshoring jobs start to pay the same scale wages as the
jobs lost in US, we are not going to gain any serious business there.
Yes, the worker there is going to afford a 4k Chinese Ping-Ping-Pong car
instead of his old bike, however no a US made SUV.

Therefore, it is plain mythology (or rather propaganda lie) that moving
our
jobs offshore we gain there customers for our products. This is not going
to happen until US wages are at the same scale with Chinese wages.

Nonsense. US exports ARE increasing to 3rd world countries including China
and India. And to many other places that pay lower wages than the US.
And have been for centuries.

....One way
or another. Since the whole reason to move jobs offshore is not to pay
salaries as in US, the only option left will be for US economy to collapse
in order to match here the wages there.

But wages in places like Japan and South Korea have been increasing and
closing the gap with the US, but the US economy has not "collapsed".

Overall "consumer income" has increased because of the higher combined
productivity of both the American who gets more done with his time, and
the Indian who is contributing to the Global economy rather than
subsistance farming or whatever he was doing before being hired by
schlepprock.

The total created wealth, yes did increased.

Yes.

.....However, average consumer
income (for US I am talking about) decreased.

Not "macro" enough as I said before. Average both the US and the other
coutry (India, China, Korea, wherever), both before and after.

And during the last 30 years (the age of Globalization) 3rd world incomes
have increasing rapidly while US incomes have increased also, but more
slowly.

Can you say "WIN-WIN"?......

So, despite the fact that "Overall "consumer income" has increased", our
economy is getting hurt.

But the question was not about just the richest people on earth (i.e.
Americans), but the overall human race.




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jim blair (jeblair@xxxxxxxx) Madison Wisconsin USA.
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