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« The Problem with a World Economy  
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toasterhead1
Toasterhead

join:2002-07-01
Norcross, GA
clubs:


2 edits
reply to Noodlin
Re: Those Damn Consumers

Another question also arises, if the product becomes much more expensive then not outsourcing will be the undoing of these companies.

Lets say company A is a computer company. They place there call information centers in India. Because the labor is cheaper there, employees can be hired cheaper. Not only does this lead to lower wait times for the customer, but it also lowers cost as the can afford more employees at a lower price.

Lets say company B is in the same industry, except there support technicians are in the USA. Lets say U.S. employees are 10x more productive then the Indian employees, they can take more calls and be more helpful. However an Indian employee cost $10 a day with no money paid to the govenrment, while an American cost $100 a day then on top of that are all the government fees -> SHA requirements, EEOC mandates, Social Security and Medicare, Family Medical Leave and many other workplace regulations. Added to worker costs that businesses incur are: Americans With Disabilities Act, Clean Air Act, Endangered Species Act and many other regulations . Suddenly, the Indian employee is the best way to go or else noone will buy there product because it will be way to expensive to compete. The consumers that do buy the product will be unable to purchase many "american made" products as they will alll be way overprice, thus leading to american employees demanding more wages and that leads to unemplyoment and higher product cost. Oops hey look were really in an endless spiral this time!

Lets say you want to protect American jobs.... what are you going to do? They are not our jobs, they are no America's jobs, they are the companies jobs and they can do what they want.

What do you want the government .. the president to do? Do you want some federal law that prohibits companies from transmitting information overseas by the Internet (I'm sure people at DSLreports would love that) , having that information transformed or modified, and then shipped back? And tell me just how do you enforce that law? Does that law then apply to you also if you seek information from a company that is located overseas, thus depriving a domestic company of your business? These companies aren't shipping parts overseas and completed products back. All they do is ship information overseas by phone lines or the Internet.

yabos

join:2003-02-16
Ingersoll, ON
There's a law that says you must hire a certain number of minority workers. Why don't they make a law that says you can't hire out more than X amount of work overseas?

toasterhead1
Toasterhead

join:2002-07-01
Norcross, GA
clubs:
Because then the company moves its headquarters out of the U.S. so it is not under the laws of the U.S. and just exports its products to us. Even more unemployment.


Combat Chuck
Too Many Cannibals
Premium
join:2001-11-29
Erie, PA

reply to toasterhead1
People don't care how it's done they want "their" job at a "fair" salary, who cares that they'll be in the same boat when prices skyrocket. What most people fail to understand is that a particular job at a particular salary is not a right.

The fact of the matter is the economy is changing. People who are able to adapt and are willing to be flexible, will prosper; those who are of the mindset of lifetime employment at "fair" (read: astronomical) wages, will be the ones in the unemployment lines.
--
Japan-- Now with 30% more climbable telephone poles!!

rockjock

join:2003-10-14
Salt Lake City, UT
reply to yabos
Bah! You're misinformed, there is no such law.

yabos

join:2003-02-16
Ingersoll, ON
There is in Canada IIRC.

rockjock

join:2003-10-14
Salt Lake City, UT
Sorry, I thought we were talking about American companies. My bad.

namespace

join:2002-12-22
31337

reply to toasterhead1
I think the answer is to tax exported labor and cut government funding to those who do export jobs. However, this will probably just cause companies to leave the U.S.

...and around and around we go...

Another idea is to be good americans and not support companies who export american jobs. But pay $39.95/mo instead of $29.95/mo for DSL? ... *shudders

Then again, I use speakeasy and don't shop at walmart so I don't have room to talk.


dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

reply to toasterhead1
said by toasterhead1 See Profile:
Not only does this lead to lower wait times for the customer, but it also lowers cost as the can afford more employees at a lower price.
Wait times arent really lower if you factor in how many calls it takes you to make before you get someone you can halfway comprehend.
--
You can never be too rich, too thin or have too much Bandwidth
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