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Subj: Re: Book Recommendation
Posted: Thu Oct 16, 2008 at 12:06:12 pm CDT (Viewed 585 times)
Reply Subj: Re: Book Recommendation
Posted: Thu Oct 16, 2008 at 05:25:42 am CDT (Viewed 704 times)

> Here's my question. I presume you've read this book. Does the author provide reasons why outsourcing is actually better for American workers than a non-outsourcing economy?

To be honest with you, I haven't read it. It's on my to do list, and I'll probably read it next week when I have alot more free time on my hands. It's similar to "And The Band Played On" (a book about the discovery and actions taken about Aids). Both books that I should read, but just haven't found the energy/time. If you want, I'll read it and give you a report. \:\)

The thing you have to understand about the loss of American manufacturing jobs is that most American manufacturing companies are badly run. Look at the US car manufacturers. Its an industry where labor costs have ran extremely high (one reason being labor unions), and where the industry didn't invest in efficient production and R&D. Just look at the gas mileage between hondas and fords.

In the same way, when the Atlanta Ford (domestic) factory closed down, within weeks a Kia (foreign) factory opened up.

You could even look at the steel producers in America. Steel is being made for much cheaper in other countries, like Japan and Germany, while it's expensive to make in the US. And the basic reason is because our production is inefficient. Companies in Germany and Japan have up to date production methods and technology, while the US companies refuse to do so. And it's simply because they don't want to invest in their future.

Another thing to look at are manual labor jobs that american workers refuse to do, such as pig raising and fruit picking in California. In some cases, it's as simple as americans refusing to do the job, because they think its degrading, it's too hard, or doesn't pay enough. Everyone things they deserve to get $50/hr, but that's not how it works.

But to directly answer your question, outsourcing is better for the US worker because it allows us to buy cheaper imports. Let's use fruit as an example. They can sell bananas cheaper in Brazil than we can in the US. In any business, each person should do what they can do more efficiently than anyone else. And the problem in the US is that we don't do things efficiently. That's a reason why we have a trade deficit.

Now, of course the US needs more manufacturing jobs, but the way to do that is to invest in our business, which is something we aren't doing.

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