To those who oppose outsourcing of American jobs?

Question

Can you explain to me how the American company is suppose to stay in business when its employees would cost $70,000 a year and the Indian or Pakistani employees would cost $7,000 a year? Also that the American company would have to maintain offices at enormous costs and in those countries they wouldn't; and what happens when another company decides to hire the people in India or Pakistan for $7k a year and develops the same product for 1/10th the cost? How is the American company suppose to survive that?

Answer 1

By the time it comes down to a company deciding to outsource or not, it usually is just a rational dollars and cents decision.

There are other factors that lead up to that situation, though, that might be worth complaining about. America is not a rich country, America is an expensive country. Irrational exchange rates, land development schemes, and overpaid union workers make simply surviving in America expensive compared to living in luxury in many other countries. American workers cost more because being an American costs more.

Until we can 'fix' that - if we even want to - we have to be content with performing only very high-value work. The kinds of things that can't be done in less expensive nations, or, can at least be done efficiently, here.

Answer 2

I agree with Gen. Patton. If US jobs continue to move overseas, eventually, US workers will have no choice but to accept lower and lower wages creating a third world country right here in the US. Most of those who advocate sending jobs overseas and even the companies who send jobs overseas say that doing so creates "better paying jobs" here in the US. Well, "better" than what? Better than the jobs overseas? Or better than the jobs that were initially lost here in the US? I'd hazard a guess and say that they mean "better" than the jobs they've created overseas. But only slightly better. Because a manufacturing job that pays 70k a year that is shipped overseas for 7k a year will result in cheaper products here in the US and will create an increase in demand for jobs at places like Wal-Mart where you're lucky if you make 20k a year. So you go from making 70k to 20k, but that 20k is "better" than the 7k the cheap labor in a foreign country supplies. The manufacturer is now saving 63k per year and the price stays the same for the American consumer. So saying sending jobs overseas creates better jobs here is not exactly true, but keep in mind, you ALWAYS have to ask "better than what?" Keep jobs here in the US. BUY AMERICAN!

Answer 3

LoL. Thats what I am saying. LoL" Illegals are here just taking our jobs" thats what I heard this man told another dude. I ask were did they work, they reply that they work in the goverment. Hello the goverment dosent hired illegals. LoL. The american company dont have a chance. The Chinese are producing products that are cheaper to produce and they sell cheaper in the stores(U.S.A). You get me. When they say we dont need illegals thats a lie. They scaring the illegals that live in the U.S.A and the new illegals are heading to Canada. Its ecomony has gone dramastically up! Good luck to our American Companys when they dont got any job.

Answer 4

Well these same companies show all they care about is money. Why create a business for certain people and then not hire them? That's wrong. They need to understand that the same people they aren't hiring wont be able to pay for the products they are selling becuase they dont have jobs.

Answer 5

Well gee, you convinced me. But the problem is..with everybody who's working now becoming unemployed, what are they supposed to use to buy the stuff that the workers who took their jobs produce and ship to us? Don't you think that might effect the profits of the companies that sell the stuff that we import? Here's an idea: put duties--taxes--on imported stuff to make its price when it comes to market here equal the price of the stuff we make here. True, Americans would pay more for imported stuff...gee, thats tough...but they would still have jobs, they would even have good paying jobs, so they could afford that extra money. Otherwise, everybody is going to be unemployed, we will produce nothing, and we will eventually all starve to death.

Answer 6

IF YOU THINK THATS THE ANSWER,why does the cost to the consumer stay high or go up? when things were made in this country, we paid good prices for good products, now we pay high prices for junk made elsewhere. the name of the game is, to bring the standard of living of the rest of the world up, while we turn into a third world country.
sound reasoning, if you live in the rest of the world.

Answer 7

You are 100% correct. Let's let all of our companies go overseas and hire the cheap labor. That way they can maximize their profit margins and stay in business. I am not sure what you and I will be doing for work... but we should have plenty of free time to think about it.

Answer 8

the point is that NO company should do it. And anyway, the companies that do outsource can afford to stay in the US but choose not to for their own profits.

Answer 9

They aren't. But not all jobs can be outsourced, and the quality in foreign countries isn't always the same.

Answer 10

Pay their CEO's less?

I'm not just being flippant here. But the average upper management earns far, far more than they need to live in exceptional comfort. You may say it sounds communistic to "make" them earn less, but that's not what I'm saying--I'm saying it's one place the money's going that could be tapped.