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.
Corporatism is using state means to enhance market share and profitability of a few favored firms, at the expense of the citizen.
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
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???
Jonathan M. F. Catalán: 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.
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).
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.
Are you going to tell me that outsourcing and trading with China is Ok under AE??? Nuts if you say yes
Nuts if you say no.
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.
Freedom of markets is positively correlated with the degree of evolution in any society...
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 US is trading with China at a far greater degree of economic freedom that China's.
Can we deduct that China's can benefit from this game at the expense of America 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 Canada and free trade with Mexico??
Conza88: 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.
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.
wolfman: 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.
So you're a nationalist and not a humanist?
Why not?
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.
Jon Irenicus: Are you going to tell me that outsourcing and trading with China is Ok under AE??? Nuts if you say yes Nuts if you say no. 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.What makes you think it does not differ within countries too... ?
Neither.......................just trying to reconcile theory with reality. Outsourcing as we call it today.....................would not even be a concern if born out of real economic freedom. But I believe its very different with China.
Giant_Joe: wolfman: 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. So you're a nationalist and not a humanist?
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). Will this be beneficial to America in anyway???
Will this be beneficial to America in anyway???
It would be a net benefit to the world at the very least. Why America? Why not your specific state, or your specific industry (especially if it is protected by tariffs, for instance, and the question were whether we should get rid of the tariffs)?
Why anarchy fails
Sure...........why not?? But that would make the discussion here way more difficult I guess.
Feel free to bring any suggestions.
AJ: 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). Will this be beneficial to America in anyway??? It would be a net benefit to the world at the very least. Why America? Why not your specific state, or your specific industry (especially if it is protected by tariffs, for instance, and the question were whether we should get rid of the tariffs)?
Would it be Ok for you if the world benefits at the expense of this country?? By means of outsourcing America of course.
wolfman:Would it be Ok for you if the world benefits at the expense of this country??
You still haven't explained how one country (say China) benefits at the expense of another country (say USA). You just keep asserting it over and over again.
I am so sorry. I thought that did not need any explanation.
1) China's undervalued currency for decades.
2) Economic freedom in the US is much higher than China's.
3) Lets not even get started in copyrights violations, stealing military technologies and using its economic influence for political purposes.
If these are not enough for you I will conclude that you speak Russian and I speak Arabic.............therefore................no good communication can exist between the two of us.
DD5: wolfman:Would it be Ok for you if the world benefits at the expense of this country?? You still haven't explained how one country (say China) benefits at the expense of another country (say USA). You just keep asserting it over and over again.
wolfman:1) China's undervalued currency for decades.
How does this make China exploit the US?
You need Eco 101 to arrive to that conclusion.
DD5: wolfman:1) China's undervalued currency for decades. How does this make China exploit the US?
wolfman: You need Eco 101 to arrive to that conclusion. DD5: wolfman:1) China's undervalued currency for decades. How does this make China exploit the US?
And you sound like a bad computer program that tries to mimic human conversation, but you still lacks the capability of distinguishing between questions and conclusions, so you're busted. You haven't even figured out that a reply comes after the quote and not before.
I won't waste my time on you.
I hope we can talk when you finish eco 101.
DD5: wolfman: You need Eco 101 to arrive to that conclusion. DD5: wolfman:1) China's undervalued currency for decades. How does this make China exploit the US? And you sound like a bad computer program that tries to mimic human conversation, but you still lacks the capability of distinguishing between questions and conclusions, so you're busted. You haven't even figured out that a reply comes after the quote and not before. I won't waste my time on you.