Why do companies have the right to outcource? Where did we get the right to cut costs, and how far does it go?

Answer 1

It's called capitalism. Private businesses...they can operate how they please.

Let's put it in a relatable example: Jim is your gardener. He only works for you, and you pay him 20 grand a year to do your landscaping.

Chavez is a landscaper for several people. He charges you about 10 grand a year to do the same work, although he does not give it the same personal touch.

Is that personal touch, worth your 10 grand?

To Jim, it's a loss of 20 grand, but to you it's a gain of 10 grand.

Businesses do their best to balance responsibility to society and their desire to make a decent profit. Yes, honest people get screwed sometimes. But in a free society, this is the absolute best we could ask for.

Jim is always free to start his own landscaping company, btw. We are all free to work wherever. Why anyone would want the government to step in and make "laws" taking away our right to hire who we want to do our work is beyond me.

Answer 2

It is called capitalism and freedom
It works like this. I spend $50,000 dollars to get an education. I work hard and start a company. The company makes a 40% profit margin. The employees want more and more pay and benifits. My margin will go to 0% what do I do, do I close the doors?

No I find cheaper raw materials or cheaper labor or both..... Did I mention I started the company? it is MINE?

Who gave YOU the right to go to a store and look for cheap products?

Oh and by the way outsourceing started in the 60s when the japanese started cutting labor prices.

Then in the 90s Bill Clinton pushed outsourceing to the max when he gave CHina preferred trade nations status....

Answer 3

It has nothing to do with rights- if you're in the business of making any product, whether it's door frames, crystal jewelry of software, if you can't do it for less than your competition, you'll lose customers. Who's going to spend $20 to buy your stuff when someone else sells the same thing for $7.50? So if you're competing against a company in Greece that's gotten their costs down due to lower cost of living for employees, or cost of materials, you'd better find a way to match that.

In this era of the Internet, people from anywhere can sell to anyone else anywhere. It's not like last century when advertising overseas and delivering products over great distances was prohibitively expensive. If some company in Algeria starts selling a car that uses water for fuel, the automakers in Japan & the USA had better do the same, or they'll be out of business.

The same applies to costs, like manufacturing & labor.

Answer 4

A better question would be: Why doesn't the government require companies to pay fair market value for labor?

Outsourcing is simply Coporations deciding to pay lower than fair market value for a job by placing that job in a cheaper labor market while still charging the current market value for the results of that labor in this market. That results in not only less income for our citizens, but lower tax revenue for our government, which is a direct threat to our national security.

Answer 5

I understand where you are coming from, but you also have to understand why we have rights.

They can do that for the same reason you have a right to choose a profession or where you would like to work.

Answer 6

This is not a Communist state. It's my company and my money, I will do with it as I please,Think You! It's a cold hard fact that if you don't have the cheapest product, You can't sell it.

Answer 7

It goes until everyone either eats dirt or caviar for their dinner depending on who you are. Besides, one day robots will do all the production and we won't need to outsource anymore.

Answer 8

I think that it is hilarious that people talk about "rights" in private enterprise.

They own the company, they want to make money.... there is no "right" it is economics....

Rights... please.....

Answer 9

Your dear darling president did that...thank him a lot!