Made in China - The Effects of Outsourcing

Achilles

Senior Member
Dec 12, 2008
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USA
As America plunges in to recession, many consumers are looking for cheaper, more economical solutions to their daily needs. As companies compete against each other to meet our growing demands for cheaper products, many are forced to outsource to China, and India. Such actions complicate things in countries where the companies were originally based, causing many problems.

When companies outsource to cheaper countries like China, the most prominent thing that happens is unemployment in the original country. Even though cheaper products is better for the consumer, many times this can lead to a weakening infrastructure and possibly a recession in the country that they were originally based in. Many of those countries need those jobs to support their economy. For example, in America, unemployment rates are rapidly increasing, and more and more main working class people are just hired immigrants illegal and legal. Before, the American image was hard working, doing any jobs for our country. Now, I'm not so sure we have the same image, partly from the unpopular wars that we fight.

Outsourcing to only a few main countries also cause other problems. If China's economy falls into a recession, much of their exports will stop, causing a major decrease in the number of supplies to many major countries like the U.S.. Outsourcing is sort of like buying oil from the Middle East; we are sending our jobs and money overseas, that could have been used to help stimulate our own economy, not theirs. If China is to become a world superpower along with the U.S., it won't be entirely from their own actions that cause their increase in power; it will also be from our actions too, handing them our ability to have a true workforce.
 
Ya think?!

I've only bored most of you to death screaming about how stupidly our government has dealt with trade policies for the last 40 years.

We have deindustrialized our nation and the PEOPLE have gotton poorer because of it.

And if the people get poor, the nation gets poor.

This isn't fucking rocket science, folks.
 
Fact check...

Americans have NOT gotten poorer. Average wages in the US, even with the recession are that the HIGHEST level in US history....
 
Zoomie seems to have forgotten that the amount of money one earns is not what makes one wealthy but how much that money is worth to the rest of the world. Based on inflation we are still making the exact same amount we were 100 years ago. All raising the minimum wage has done is increased the cost of the products by the same amount, thus the same percentage of each check goes to bills and other needs, so no one is getting anywhere. Also by continuing to print more money with less being destroyed (not to mention increasing it with personal credit) all we are doing is devaluing the US dollar. However, with the lower number of employed workers in the US, all that is made worse.
 
Fact check...

Americans have NOT gotten poorer. Average wages in the US, even with the recession are that the HIGHEST level in US history....

And yet bankruptsies continue to climb, the number living in poverty and near poverty increasing all the time.

Odd that, isn't it?


Fact check...the purchasing power of the average american has been declining for the last 40 years. Your numbers are meaningless.

Fact check... the government has been lying to us about inflation for the last nine years.
 
And yet bankruptsies continue to climb, the number living in poverty and near poverty increasing all the time.

Odd that, isn't it?


Fact check...the purchasing power of the average american has been declining for the last 40 years. Your numbers are meaningless.

Fact check... the government has been lying to us about inflation for the last nine years.
That is not all they have been lying about. they have allowed banks to strip funds through creative accounting.

EX: Bank A. sells a consumer loan for $120,000.00 for a home loan backed by HUD. Consumer unkowingly signs life away not knowing bank A may be changing paperwork as the docs are signed. Bank A pays a small fee to reinsure it's money. Bank A. has collected points and fees and often then recieves supplements from HUD for making the loan. Bank A sells mortgage to bank B.
Bank B buys grouped mortgages based on percentages. Bank b raises fees. possibly bank B found a loophole in the mortgage that bank A added without the consumers knowledge or approval. Bank B also recieved a breakdown of consumers valuation. This valuation chart created by software that provided information of consumers families assets. EX: john w. and wife owns two cars and a small piece of vacation land in Florida, j.w father r.w. owns ..... etc...

In that family asset valuation chart bank B knows it can push a few buttons to get consumer to have family help pay late payments. Also bank B can do a bit of creative accounting to induce excess cost.


A bit more to it than that but that gives the jist of what has been transpiring out here in consumer land for a long time now.
 
The economy is in the sad state it is in because.. People live way beyond their means and they do it with a credit card.. hello... and the same thing is true with our government.. it spends more than it makes.. so if people are poorer it is because they have way over spent, saved little and yes of course the value of the dollar isn't the same.. don't blame that on free trade..
 
The economy is in the sad state it is in because.. People live way beyond their means and they do it with a credit card.. hello... and the same thing is true with our government.. it spends more than it makes.. so if people are poorer it is because they have way over spent, saved little and yes of course the value of the dollar isn't the same.. don't blame that on free trade..
Just who has been encouraging them to do that Willow?

Also who has been paying off and paying up the politicians?

I know here in Des Moines Wells fargo dumped a shit load of money that belonged to the taxpayers! They made all kinds of promises for a home mortgage center then shit on the people!!!!!!!

I mean think about it! Do not think for one minute they have the best interest of the working man in their hearts when they have allowed these banks to take over and then screw the people with their low ass wages in the name of FREE TRADE!

If you want to sell your brothers and sisters to the dogs go for it I won't and I will no longer stand back and watch it happen in silence.
 
Debt structures are typically long term.

If we've set up consumers to enter into long term debts and ALSO set them up such that their dollars are lsoing purchaisng power (and I think we have) then OF COURSE people make mistakes in finance.

They borrow thinking things will get better when in fact things keep getting worse.

People aren't broke becuase they spend too much, they're broke because their incomes are not keeping up with the rising cost of living.

You guys can take your class treason blame the victim libertarian nonsense and shove it squarely up Ayn Rand's misanthopic ass.

That kind of excuse the criminals while blaming their victims rationalizing is why this nation is going down the shitter, right now.

Supply side economics has been taken to excess AGAIN.

And, thanks to that goofy theory, now the Kynesians will pump trillions into the economy in the hopes that it will set thing right.

It won't of course, because the rules still favor capital far more than they should.

So, at best, pumping trillions into the economy will ONLY mitigate the problems for a while.

Then the power of compound interest and the screw the working class laws we have in place fuck over the working classes home economies AGAIN.

The rich will again get too rich, the poor will continue to be too poor, and we'll go into the BUBBLE AND POP! economic cycle we've been in for the last couple decades.

Gilded ages like we've just gone through are inevitably followed by depressions.
 
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As America plunges in to recession, many consumers are looking for cheaper, more economical solutions to their daily needs. As companies compete against each other to meet our growing demands for cheaper products, many are forced to outsource to China, and India. Such actions complicate things in countries where the companies were originally based, causing many problems.

When companies outsource to cheaper countries like China, the most prominent thing that happens is unemployment in the original country. Even though cheaper products is better for the consumer, many times this can lead to a weakening infrastructure and possibly a recession in the country that they were originally based in. Many of those countries need those jobs to support their economy. For example, in America, unemployment rates are rapidly increasing, and more and more main working class people are just hired immigrants illegal and legal. Before, the American image was hard working, doing any jobs for our country. Now, I'm not so sure we have the same image, partly from the unpopular wars that we fight.

Outsourcing to only a few main countries also cause other problems. If China's economy falls into a recession, much of their exports will stop, causing a major decrease in the number of supplies to many major countries like the U.S.. Outsourcing is sort of like buying oil from the Middle East; we are sending our jobs and money overseas, that could have been used to help stimulate our own economy, not theirs. If China is to become a world superpower along with the U.S., it won't be entirely from their own actions that cause their increase in power; it will also be from our actions too, handing them our ability to have a true workforce.

Fact Check: During the industrial revolution we screamed bloody murder that companies were polluting our waters and poisoning the air we breathe.

Offshoring or "Outsourcing" is a perfect example of journeying down a primrose path. We don’t have to look back very far in history to recall when our rivers ran opaque and our skies were dark.

During the industrial revolution technology didn’t exist that would enable us to manufacture products in an environmentally safe manner, so what did we do? We encouraged those manufactures to setup shop in third world countries, that’s what we did. We were happy because those messy manufacturing plants start disappearing from our landscape, our rivers began to run clear, and our skies began to brighten. Third world countries were happy because, commerce came to their towns and villages, their people were happy because they had jobs, and the pollution didn’t seem to bother them. It was a win/win for everybody, except maybe for the poor slobs who were losing their manufacturing jobs back in the good old USofA but, we had a plan for them too. We’d simply retrain them to work in non polluting industries!

Essentially, we opened a can of worms because, once those manufactures got to wherever they went they realized that their cost of operation was lower, they didn’t have all those pesky special interest groups and their lawyers breathing down their necks, and they were able to profit more from the products they sold back home. Not a bad business model for us capitalist pigs, eh?

It seems it didn’t take long for non polluting industries to catch on to that business model and expand upon it, especially in light of escalating employee costs, the rising price of manufactured goods, and the constant increases in corporate taxes in the USA.

Here endeth my story, or is it the beginning? It’s hard to say on this slippery slope.
 
So the move to protect our environment is responsible for deinsitrialization?

Good theory, because I agree that plays a small part in why some industries moved offshore.

It's not the primary reason, but it definitely does have a role in that process.
 
I am the average American.


My pay increases 1% a year. But my health insurance just went up 35% a year. In Jan. my paycheck will be less than what it is now.

Thank goodness for generic and store brand products, and Goodwill!
 

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