Matt Miller (#4) (8/27/2012)
I don't necessarily believe that the outsourcing wave has anything to do with political aspirations or is anything new in the business cycle. At all times a business is chraged with trying to define what is "core" to their business, and what is anciallary. The idea is to retain those things tht are core and enhance them (maximize what is your core advantage), while off-loading the ancillary items. It's actually good, since it allow for new, specialized industries to appear, whose core business is what another company no longer considers core.But this has always been happening: the first companies who put together tractors, used to assemble and make every part. As time went by they off-loaded more and more onto other companies, who got better at making those parts. SO yes - there are jobs shifting from one company to others, but in almost every case it leads to a net increase in jobs, and not the other way around.
Call me a starry-eyed optimist, but I'm not worried - I actually look forward to it.
Hmm, you do seem optimistic, and I applaud that attitude.
I have to disagree with outsourcing leading to a net increase in jobs. Caterpillar and other manufacturers shed jobs and sent them overseas. Whether there are more jobs in China doesn't matter to me, the fact that a large numbers of Americans lost their jobs does, because I believe we should take care of our own first. Also, until the US economy improves, the world economy isn't going to, and that is hurting billions across the planet. US consumers drive the world economy more than any other country.
As to your first point, it is political today. Companies used to outsource jobs overseas simply because of smaller wage costs. Today they are outsourcing jobs due to environmental regulations being pushed by extremists claiming to "save the planet". If we want to save the planet, why are we moving jobs to countries that have almost NO environmental regulations? Even if we think it is good to have these regulations, we have to admit they are political by definition. I do think we need to treat our planet better, but I recognize that when companies are forced to close factories due to government regulations, that is a political decision that forced the business decision. I am sure there are still jobs being lost to greedy business leaders, but that is no longer the only cause.
Sigh, if only I had a magic wand from one of those characters in the very popular magic books and movies, I could cast a spell to make everyone get along, everyone to have enough to eat, and everyone to work hard. Sadly human nature prevents that sort of thing from every really happening (peace and tranquility, not magic of course!)
Dave