Outsourcing Delivers Hope to India:
By means of the Internet, Natarajan and nine other E-Loan underwriters — college graduates who earn between $220 and $330 per month, a fraction of what E-Loan pays its U.S. employees for the same work — can analyze and process loan applications as easily as if they were working down the hall. Moreover, because of the 12-hour time difference, the Indian employees can work while their counterparts in California are sleeping. That allows the company to trim two days off the 12 that it normally takes to process a home equity loan, according to E-Loan’s chief executive, Chris Larsen.“Every single company we know of is looking into it,” Larsen said in a telephone interview. “The pricing and efficiency component is too compelling. You can’t turn your back on it or you simply won’t be competitive.”
What’s that sucking sound in the background? That’s the sound of American jobs being roped in by the economic scam commonly referred to as “outsourcing.” Unless something is done and done now Tom, Dick and Harry will be forced to take matters into their own hands and grudgingly find another job on the other side of the tracks. Despicable.
Via Marginal Revolution.
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“Outsourcing” does not exist – in a capitalist world. It only exists in a statist society. The laws of economics know no political or social boundaries. Just like nature. It exists.
Required to implement “OSing” is force. That is when government is allowed to move beyond its only legitimate reason for existing, the protection of individual rights. A right is a moral concept.
In a capitalist world, business is not forced, as it is today, by government, and businesses do not have lobbies that allows them special favors from government.
The only responsiblity a businessman has is to himself and or his stockholders. If he acts in his own rational self-interest, profits, happy employees and happy stockholders results.
There is no such issue as “social responsibility”, because whatever is good for the businessman will be good for everyone else – there are no contradictions if the basic premise is correct. If there is, then to quote the philospher-novelist Ayn Rand, “check your premises”.
Any politician or other entity that acts on “OSing” is sacrificing the rights of others.
“America” is not “losing jobs”. America is a political entity – there is no such thing as the “America economy”. That is a collectivist idea.
But then rational ideas today are rare, and in today’s philosophical environment, with its hatred for capitalism, a country such as the United States, where individualism is its foundation, would be impossible to found.
Companies must and have the right to do whatever is neccessary to ensure the maximum profitablity.
There is no difference between that and the concept of individual rights.
Those who reject the above had better realize, that if they support or are prepared to see government enforce a law or laws that penalize companies who outsource, should not cry foul when the same government enforces a law that drafts their sons and daughters into military service.
There is no difference.
If US workers prefers for jobs to stay here then they should support increased immigration. The wages may fall but this will also reduce the cost of healthcare (because doctor’s fees will get reduced because of immigrant doctors). Thus there will be …
When ever I hear the bogosity of terrible “outsourcing”, rather than contradict the speaker I agree with them. I say how awful it is that Massachusetts loses jobs to West Virginia.
And all those low-wage workers in Alabama, taking good jobs away from New Yorkers. There aught to be a law!
When the elitist objects, I ask them why. Why is it any different than what they were objecting to?
Their only answer, and the one that trumps anything I say, is that it’s not an “American” getting the work. Period.
While outsourcing may be bad for the people who lose their jobs (Assuming they will be unable to find another equally good or better job) and have get themselves a new one, it will clearly be a net benefit for the economy as a whole because of the lower prices that will follow. As long as the displaced workers find a job that earns more than the cost of the Indians to whom the jobs are outsourced the savings to other Americans will be greater than the loss for the displaced workers.
From David: “”Outsourcing” does not exist – in a capitalist world. It only exists in a statist society. The laws of economics know no political or social boundaries. Just like nature. It exists.”
You hit the nail on the head. The problem that we face, however, is the dogma of patriotism. This dogma is actually the source of much collectivism in this country. It essentially goes like this: “I am an American, you are an American, therefore you owe me something.”
sar·casm, n. (särkzm)
1. A cutting, often ironic remark intended to wound.
2. A form of wit that is marked by the use of sarcastic language and is intended to make its victim the butt of contempt or ridicule.
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