Why do people defend capitalism and bash outsourcing at the same time?

Question

If you're so pro-capitalism, how can you bash outsourcing? Outsourcing is a prime example of capitalism at work, and yet all those capitalism loving people bash it every chance they get. I guess they only like capitalism when it works in their favor. Also, any economist will tell you outsourcing is good for America.

Answer 1

We never bash outsourcing! We are for it because it gives cheap labor. duhh.

Answer 2

You are generally correct in arguing that being pro-capitalism conflicts with being against outsourcing. The probable exception, as already pointed out, is when the country getting the jobs isn't a free market.

You are also wrong in arguing that "outsourcing is good for America". This is a common misrepresentation of free trade theory. Trade theory shows that free trade increases the efficiency of the system in which it occurs. This means that if the USA and India are both completely free markets with no trade barriers and US jobs get outsourced to India, the system of the Indo-American economy is more efficient. However, that does not mean that American itself is better off. Trade theory doesn't assume this at all, except possibly in the extreme long-term of the system. Further, the assumptions required for this long-term benefit to hold are generally not real world conditions

Answer 3

it may be good for corporations to outsource, but not for the middle class in America. Why is it so important to have a booming market wherein only the people with large market shares win. Where is the morality in deleting the middle class?

To say that "outsourcing is good for America" is idiotic. Any "economist" that says that is a partisan Republican and is biased.

Answer 4

Outsourcing is good from a microeconomic standpoint, but when you look at the macroeconomics of it, the lower and middle classes lose. The only ones that benefit are the Wealthy. And in the long run it weakens the stability of the dollar and could end up in countries like China beating us to the finish.

Answer 5

Because conglomerates outsource and then use their money to force smaller companies out of business in the US, creating a monopoly for themeselves. No competition means they charge higher prices to all of those US workers they fired when they moved the jobs overseas. Meanwhile, we will be fed a steady diet of lies like the ones you hear when waiting for "Bob" in India to pick up the phone line only after hearing the recording telling you "how valuable your call is to us" 25 times.

Answer 6

outsourcing to a free market yes.. .theoretically...

but that's the trick... if you're outsourcing to a communist country that can control it's currency and keep it artificially low... I don't think that's good... like China

you can't compete if the other country doesn't play fair... it's each country playing by two different sets of rules...

Answer 7

Also, any economist will tell you outsourcing is good for America

Any KOREAN economist surely would say that, Mr. Kim.

Answer 8

Because people don't understand how it impacts us. Just trying to look smart.