Trading Post
ShellyKing
Outsourcing and the U.S. Economy

It's about time someone spoke the 
truth concerning outsourcing. The politicians sure 
won't. They prefer to do finger-pointing saying it 
is "his fault". It is those greedy manufacturers 
who want to make bigger profits by having cheap 
labor in Asia perform your task for less money.

Did anyone ever tell you that if it wasn't for 
outsourcing you might not have a job? Did anyone 
ever tell you that the underwear, shoes, jewelry 
and hundreds of other items you own would cost 
much more if it wasn't for outsourcing? Probably 
not.

Sure, many tasks are being sent 
overseas. Why? Just because it is cheaper? No, 
because the manufacturer that item had to do it in 
order to be able to compete with other companies 
making a similar product. If your company or any 
company cannot remain in business then they will 
cease to exist and you will be out of a job. As a 
former manufacturer I will tell you it is 
dog-eat-dog out there and every company is doing 
its best to maintain sales and profits. The 
company did not go into business to make products 
and give you a job; they went into business to 
make money and if they can't do that they (and 
you) will be gone.

Profits is not a dirty word. Again if 
it wasn't for profits you would not have a job. 
The guy who owns the small business or the 
thousands of stockholders who own the big 
companies expect that company to make money or 
they will sell their shares and you will be gone 
too.

When you work for someone you want to 
do everything possible to contribute to their 
bottom line. Turning of the extra lights, keeping 
your machine properly maintained, getting a 
shipment out to a customer even if it means 
staying a few extra minutes and many other little 
things that you know better than I.

Until about 1975 we did outsourcing 
and no one objected to it. The widget manufacturer 
stopped making screws and bought them from the guy 
across town or in the next state who made exactly 
what he wanted and at a price cheaper than he 
could produce them in his widget factory. Now we 
buy the screws from China and India at a price 
that is half or less than those made in the USA. 
If not each widget might cost dollars more and be 
enough to lose business to a competitor. If the 
widget company did not outsource there could be a 
strong possibility they would go out of business.

Outsourcing is not a U.S. phenomenon. It is 
happening to Canada, Germany, Japan, England, 
France, Australia and many other countries. Even 
Mexico is losing jobs to Asia because they can 
produce the same quality goods and services 
delivered here for less.

Outsourcing is not only here to stay, but 
is going to expand as competition becomes even 
more fierce.

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