Macroeconomics and Outsourcing

Question

The links doesn&#x27;t work if you click on it but if you copy and paste it into a search engine it will come uphttps://www.commonsenseeconomics.com/Activities/Outsourcing.pdf&#xD;&#xA;It talks about how outsourcing can actually create jobs.I know some of you will laugh but read it.Here are some theories how this could happen. I was watching&#x9; Stossel the other night and this is what made me think of it:I work in the logistics field in the private sector so I&#x27;ve dealt with this&#x9; before:Company XYZ used to manufacture a product in the U.S. but they realized they would save money if their product was manufactured overseas. The unfinished product now has to be picked up by trucks and brought to a shipping port (it could also be a railroad). That product is unloaded off of the trucks and put into a shipping container. The unfinished product is then sent overseas. Eventually the finished product comes back into port, the container is unloaded, loaded onto trucks, then sent back out for distribution here in the US.None of that activity would have taken place if the product was manufactured here.Besides that, most Americans do not want to do manufacturing jobs. It helps out other countries while still creating jobs in the US.

canovsp · Answer

The links doesn&#x27;t work if you click on it but if you copy and paste it into a search engine it will come uphttps://www.commonsenseeconomics.com/Activities/Outsourcing.pdf&#xD;&#xA;It talks about how outsourcing can actually create jobs.I know some of you will laugh but read it.Here are some theories how this could happen. I was watching&#x9; Stossel the other night and this is what made me think of it:I work in the logistics field in the private sector so I&#x27;ve dealt with this&#x9; before:Company XYZ used to manufacture a product in the U.S. but they realized they would save money if their product was manufactured overseas. The unfinished product now has to be picked up by trucks and brought to a shipping port (it could also be a railroad). That product is unloaded off of the trucks and put into a shipping container. The unfinished product is then sent overseas. Eventually the finished product comes back into port, the container is unloaded, loaded onto trucks, then sent back out for distribution here in the US.None of that activity would have taken place if the product was manufactured here.Besides that, most Americans do not want to do manufacturing jobs. It helps out other countries while still creating jobs in the US.

TheGoldenGoose · Answer

You are an idiot.

rick3117 · Answer

Interesting concept, but the products would still have to move to market. Truckers would still be employed.  Maybe this is theory was put forth by the longshoremen of America.

cd329 · Answer

Come on bottomline is if products are made overseas, there is going to be less jobs here. The people behind the jobs going overseas, can use all the bs they want, theres still less jobs here.

Its only going to keep getting worse. Each future generation of kids are going to find it tougher and tougher to find any decent paying jobs.

If our politicians dont realize this soon and get out of the corporations pockets, our country really is doomed. I dont know when, but its gotta be within the next 25 years for sure

Ktrain · Answer

This is exactly what I think about when I go to strip clubs and get black out drunk.

Because if I didn't do these activities the strippers wouldn't be able to go to college. Because all strippers are just putting themselves through law school or med school right?

And if I didn't drink myself into a near coma the bartender wouldn't have a job. Then that would add to the unemployment numbers.

Not only this, but all of my money stays in country......well unless I am buying Anheuser_Busch products.

wallstreetcappers · Answer

I dont get this either..So are you trying to say that shipping product overseas means more jobs for shippers and delivery trucks?If thats the case...wow.

slikstiks99 · Answer

Whatever keeps the hampster ball rolling.

cd329 · Answer

Ktrain &#xD;&#xA;You are doing a service to our country for helping fund those hot strippers college courses and future careers

Ktrain · Answer

[Quote: Originally Posted by cd329]  Ktrain &#xD;&#xA;You are doing a service to our country for helping fund those hot strippers college courses and future careers  [/Quote]Ask not what strippers can do for you......but what you can do for strippers.

cd329 · Answer

lmfaooooooooo thats even funnier.  You might have to take a stab at the comedy circuit

dl36 · Answer

hamsters

djbrow · Answer

Sometimes you read a post and say &#x27;wow.&#x27; &#xD;&#xA;Post 7  but you are missing something....&#xD;&#xA;we all know that when American products are made in the States, there is no transportation, loading, unloading, etc. because the finished product is magically transported to the store for sale. &#xD;&#xA; &#xD;&#xA;As far as the argument that Americans don&#x27;t want the very low end factory jobs (note that supervisors and managers are generally better paying and promoted from within), you are making a very compelling argument for illegal immigrants to remain: their type of jobs, beneficial to US economy, and doesn&#x27;t hurt the American worker. &#xD;&#xA;Thank you.

canovsp · Answer

I&#x27;m assuming from the responses that no one opened the link.If you are a community organizer then I understand why you didn&#x27;t. But If you want to learn something then read it.By the way, the link is the 2nd line of post #1, not the "jobs" link highlighted in blue. I didn&#x27;t do that "jobs" link.

Ktrain · Answer

I opened the link, I read the article, I learned.......absolutely nothing.

It just seems a little to simplistic in nature to be valid. Irv runs his business and soon his costs become to high. He outsources manufacturing jobs to China and because held can lower his prices he is able to hire twice as many people? It doesn't seem practical to me and there is no valid reason why lowering his prices would guarantee that his business would seemingly double. It just seems to simplistic.

How do we know that irv's company hadn't already reached its full market potential before he outsourced? How do we know that any increase in profits would guarantee Irv would use that money to hire workers back and not just keep the money for himself? Also how do we know that the product Irv puts out isn't crap now that it's made in China and his customers are even happy with it?

Th article pretty much gives an absolute best case scenario without considering other factors.

It's like the strip club lowering the price of lap dances to increase its customer base. Sure they can hire more strippers to help satisfy the customers. But if the strippers are ugly and can't give good lap dances then the customers are going to look somewhere else. Maybe the population of the area the strip club serves is holding steady or declining and the overall customer base is shrinking anyway. Now you have all these ugly strippers walking around just taking up space in the club. And no one wants ugly strippers walking around pestering them for lap dances.

canovsp · Answer

He would be able to add jobs (this applies to any company) because his demand would go up. Since he is lowering his prices he has more customers willing to buy the product as opposed to the customers going someplace else. As far as the type of jobs I&#x27;m not sure because the paper never mentioned any specific job (maybe administrative or sales).As far as using the profits to hire more people: in the business community the only way to make more money is to sell more of your product and the only way to sell more of your product is to have more people on your staff working for you. In simple terms if Irv is selling 1000 units a month with 5 employees he would need 10 employees to sell 2000 units.If his product is crap then he wouldn&#x27;t increase sales. I don&#x27;t know if this was a real situation or a hypothetical but it said his product was selling more so I&#x27;m assuming his product was good.

be easy · Answer

Do we ever bother to stop and ask ourselves why are we doing, what we are doing, where are we going, and what are our goals?

Do we really want jobs, just for the sake of having jobs? Is it the fear of those of you that have so much, that the idle hands will get restless and come and take that from you which you have taken from somebody else?

If it's all like that, why not just pay the jobless 500$ per week to sweep streets and pick up trash on public grounds? In an attempt to reverse the tragedy of the commons?

500$ per week = 26k per year

Estimates come in around 100 Billion dollars a year in costs for the mortgage interest deduction, and we all know what an abysmal failure that silly program is

We could pay 4 million Americans 500$ per week to sweep streets and pick up trash in public areas, if we just eliminated the mortgage interest deduction

Ktrain · Answer

I hav to think this was a hypothetical otherwise all businesses would be touting this as a reason to manufacture overseas. If it was such a great idea and worked out as well the article suggest you would see companies running ads as a reason to send manufacturing jobs to china.

I just don't think it is as simple as Company X lowers prices due to outsourcing of manufacturing jobs and their customer base automatically doubles in response. I mean in theory, yes it should work that way. In using my stripper example above, it doesn't guarantee a quality product or an increase customer base.

I understand what the article is saying, I just don't think it is as simple as sending one job overseas creates two jobs here. Otherwise the U.S. unemployment rate should be at an all time low right now.

I think I should visit the strip club to suggest these ideas to the manager and see how the real life application should work out.

canovsp · Answer

I don&#x27;t trust your opinion so I would need to sample the goods personally.

Ktrain · Answer

I think we need to have a Covers field trip to a strip club for economics class.

cd329 · Answer

Beeasy, why are you wasting all your knowledge, posting on  gambling forum?&#xD;&#xA;Shouldnt you be taking your message out to the public,maybe even running for some political office.

dl36 · Answer

im there...

dl36 · Answer

So is romney/ryan for or against outsourcing?

what are their plans or complete lack of plans in addressing this issue?

as an undecided voter, I am interested to understand what the romney/ryan stance is...

cave0707 · Answer

Hmmm ... "unfinished product" ...  So your assumption is that the materials used to make the product for company XYZ comes from the U.S.  I guess it would depend on the product but if you&#x27;re talking about making semiconductors, motherboards, flat screens, high tech gadgets ... none of that is from the U.S.  Those components are from Taiwan, China, South Korea and Japan.  I believe your logistics background allows you to understand the benefits for the transportation sector but doesn&#x27;t take into account the net effect at the macro economic level.  I wouldn&#x27;t assume that Americans don&#x27;t want manufacturing jobs.  When Toyota started its truck manufacturing unit in San Antonio several years back, the local community didn&#x27;t say, "we don&#x27;t want those low end jobs".

SarasotaSlim · Answer

You know.. I was going to vote for Romney [the anti-Obama vote ], but now I&#x27;m undecided..&#xD;&#xA;I need to know more about the R2&#x27;s plans on the economy..

Macroeconomics and Outsourcing

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