I am sure you guys have already discussed outsourcing here.
But since I am new I would like to know what AE thinks about outsourcing
Also, is there any difference from the book term “outsourcing” and what really goes on in the real world. For example…'s full control over its currency can keep the level of outsourcing in much higher.
So far my understanding about outsourcing is like this: depending on the laws and political will…nations will exchange factors of production…however, the more similar economies are…the less negative impacts of outsourcing…think EU members.
On the other hand, the more different economies are…the more negative and positive impacts. Think , -. The poorer nation benefits at the expense of the other.
Most foreign investment goes from First World country to First World country.
More investment comes into US than comes out of it. The rest of the world is largely creating jobs in rich nations like the US far more than US is in them.
There are many details that will show that outsourcing is healthy to an economy and that any short-term unemployment is simply worker displacement but the best argument i can give you is the “who cares” argument? It’s just people trading with people. Why should i care is someone lives in a specific longitude/latitude?
Taking this to an extreme…let us suppose that every single job in America could be outsourced. Either by technical advances or by insourcing cheap labor (removing legal status as requirement for employment).
Thanks I did read them. It makes sense for what its taking in consideration to do the analysis. However, the industries, political and all resources of many nations have been deployed so they can obtain the most resourses from other nations. Example: China…this country has kept their currency so undervalued to manipulate their whole economy.
Are you going to tell me that outsourcing and trading with China is Ok under AE??? Nuts if you say yes
Also I am supposed to read or adopt those like the holy bible??
This isn’t what outsourcing achieves. What outsourcing is really a conduit for is the extension of the division of labor across the world. If an industry is exported to a foreign country, a new one is created in place of the last one, because labor is always sought after unless the market is distorted by interventions which create a surplus in labor.
Yes, they have manipulated the value of their currency. The governments of most nations do. I don’t understand what the rest of your statement is saying. It isn’t clear to me.
Economics is a value free science. It doesn’t say “Do X.” … it says “If you do X, what will happen is Y.” And why would outsourcing to China and allowing free trade be nuts? I suppose this is a valuation on your part. Do other countries deserve to be served by people in other countries?
Once again, Austrian Economics is value free - the fact that I need to even repeat this is appalling.
You are referring to Libertarianism - i.e political philosophy.
What is wrong with free trade? What is wrong with the free market?
You’re not “supposed” to do anything. You can do what you want (within the forum rules). I’d suggest you present logically valid arguments of what you disagree with, or agree with.
Sorry, but i think that looks different from reality.
All over America there are many places where labor markets are paid very different. Yet, obviously we never say, california is outsousing jobs to alabama. Who cares? its the same country, if the company moves so can the employee to keep his job in his own country.
But I think in real life the business is different accross countries.
Also what evidence do you have that new industries are being created???
Regarding monetary economics from Mises’ book I learned something very interesting which my mainstream economics textbooks could never answer. “Bad money drives out good money”
If I apply this same principle to the outsourcing problem I think I get somewhere. The is trading with at a far greater degree of economic freedom that 's.
Can we deduct that 's can benefit from this game at the expense of playing free???
I think they do…that’s why I oppose outsourcing under the current system.
I have another question for you…Under AE…is there any different from free trade with and free trade with ??
The EU is similar to the US. They have surrendered their economic nationalism. If a company in Germany moves to Spain due to cheap labor, german employees can follow their company and vice versa.
But China and US is a very different scenario. One is even communist. sorry guys …I just think we have to think this one harder…I believe China is sucking up America.
I really don’t have a position against or favoring outsourcing…I am just trying to get realistic here…while looking at the mighty knowledge of AE.