Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

A concern on Outsourcing............

Answered (Verified) This post has 1 verified answer | 65 Replies | 3 Followers

Top 500 Contributor
Male
290 Posts
Points 6,115
wolfman posted on Mon, Mar 22 2010 8:48 AM

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............China's full control over its currency can keep the level of outsourcing in America 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 US-China, US-Mexico. The poorer nation benefits at the expense of the other.

Thank you for sharing your information.

  • | Post Points: 50

Answered (Verified) Verified Answer

Top 50 Contributor
Male
2,943 Posts
Points 49,130
SystemAdministrator
Answered (Verified) Conza88 replied on Mon, Mar 22 2010 10:41 AM
Verified by wolfman

wolfman:
I would like to know what AE thinks about outsourcing

The Economics of Outsourcing - William Anderson

http://blog.mises.org/2275/outsourcing-orders-menacing-thieving-and-un-american/

http://blog.mises.org/7927/downward-dollar-delivers-blow-to-outsourcing/

http://blog.mises.org/1383/restrictions-on-outsourcing/

http://blog.mises.org/1482/hurrah-for-outsourcing/

In Defense of Outsourcing

http://blog.mises.org/1885/a-dangerous-form-of-outsourcing/

http://blog.mises.org/2463/paul-samuelson-vs-outsourcing/

http://blog.mises.org/1464/a-limit-on-job-outsourcing/

The Perils of Outsourcing

Ron Paul is for self-government when compared to the Constitution. He's an anarcho-capitalist. Proof.
  • | Post Points: 5

All Replies

Top 25 Contributor
2,966 Posts
Points 53,250
DD5 replied on Mon, Mar 22 2010 10:18 AM

wolfman:
The poorer nation benefits at the expense of the other.

How so?

  • | Post Points: 20
Top 500 Contributor
Male
290 Posts
Points 6,115
wolfman replied on Mon, Mar 22 2010 10:39 AM

What??

DD5:

wolfman:
The poorer nation benefits at the expense of the other.

How so?

 

  • | Post Points: 20
Top 50 Contributor
Male
2,943 Posts
Points 49,130
SystemAdministrator
Answered (Verified) Conza88 replied on Mon, Mar 22 2010 10:41 AM
Verified by wolfman

wolfman:
I would like to know what AE thinks about outsourcing

The Economics of Outsourcing - William Anderson

http://blog.mises.org/2275/outsourcing-orders-menacing-thieving-and-un-american/

http://blog.mises.org/7927/downward-dollar-delivers-blow-to-outsourcing/

http://blog.mises.org/1383/restrictions-on-outsourcing/

http://blog.mises.org/1482/hurrah-for-outsourcing/

In Defense of Outsourcing

http://blog.mises.org/1885/a-dangerous-form-of-outsourcing/

http://blog.mises.org/2463/paul-samuelson-vs-outsourcing/

http://blog.mises.org/1464/a-limit-on-job-outsourcing/

The Perils of Outsourcing

Ron Paul is for self-government when compared to the Constitution. He's an anarcho-capitalist. Proof.
  • | Post Points: 5
Top 25 Contributor
2,966 Posts
Points 53,250
DD5 replied on Mon, Mar 22 2010 10:47 AM

wolfman:

What??

DD5:

wolfman:
The poorer nation benefits at the expense of the other.

How so?

 

How do poor nations benefit at the expense of the richer nations?

 

  • | Post Points: 35
Top 75 Contributor
1,365 Posts
Points 30,945

Outsourcing is pretty exaggerated.

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.

  • | Post Points: 5
Top 500 Contributor
Male
290 Posts
Points 6,115
wolfman replied on Mon, Mar 22 2010 11:17 AM

In the case of outsourcing they do.

DD5:

wolfman:

What??

DD5:

wolfman:
The poorer nation benefits at the expense of the other.

How so?

 

How do poor nations benefit at the expense of the richer nations?

 

 

  • | Post Points: 20
Top 150 Contributor
Male
753 Posts
Points 18,750

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?

Read until you have something to write...Write until you have nothing to write...when you have nothing to write, read...read until you have something to write...Jeremiah 

  • | Post Points: 20
Top 500 Contributor
Male
290 Posts
Points 6,115
wolfman replied on Mon, Mar 22 2010 11:32 AM

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).

Will this be beneficial to America in anyway???

  • | Post Points: 50
Top 10 Contributor
Male
5,255 Posts
Points 80,815
ForumsAdministrator
Moderator
SystemAdministrator

In the case of outsourcing they do.

Which is circular, since the question is, how is outsourcing harmful?

Freedom of markets is positively correlated with the degree of evolution in any society...

  • | Post Points: 5
Top 50 Contributor
Male
2,943 Posts
Points 49,130
SystemAdministrator
Conza88 replied on Mon, Mar 22 2010 12:15 PM

Are you going to read or watch any of the resources I posted - or will "history repeat itself"?

Ron Paul is for self-government when compared to the Constitution. He's an anarcho-capitalist. Proof.
  • | Post Points: 20
Top 500 Contributor
Male
290 Posts
Points 6,115
wolfman replied on Mon, Mar 22 2010 12:38 PM

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??

Conza88:

Are you going to read or watch any of the resources I posted - or will "history repeat itself"?

 

  • | Post Points: 50
Top 50 Contributor
Male
2,687 Posts
Points 48,995
Suggested by filc

wolfman:

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).

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.

  • | Post Points: 35
Top 75 Contributor
Male
1,129 Posts
Points 16,635

wolfman:

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.

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.

Are you going to tell me that outsourcing and trading with China is Ok under AE??? Nuts if you say yes

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?

Also I am supposed to read or adopt those like the holy bible??

If you want. No one is asking you to.

  • | Post Points: 5
Top 50 Contributor
Male
2,943 Posts
Points 49,130
SystemAdministrator
Conza88 replied on Mon, Mar 22 2010 12:46 PM

wolfman:
Are you going to tell me that outsourcing and trading with China is Ok under AE??? Nuts if you say yes

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?

wolfman:
Also I am supposed to read or adopt those like the holy bible??

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.

Ron Paul is for self-government when compared to the Constitution. He's an anarcho-capitalist. Proof.
  • | Post Points: 20
Page 1 of 5 (66 items) 1 2 3 4 5 Next > | RSS