outsourcing in reverse

[Circlenaut]

Originally posted by: Stunt
There is much more at stake here than the article or you guys lead on.

By definition trade is the exchange of goods and services mutually benificial for both parties. I is trade that has allowed each nation to specialize in production of certain products at a lower price. So the argument to keep *everything* within one's borders is not only less than ideal, but repressive for increasing productivity and wealth.

As Rainsford has mentioned...it's not as simple as equating labour of nation 1 vs. labour of nation 2. Outsourcing tends to go to areas of political instability and low capital investment is desired, therefore more labour is required for the same output. Also, these regions are long distances away and require extremely large inventories for warehousing, during shipment causing much more costs and inflexibility to customer demand. That's not even considering costs to ship and distribute the goods. Therefore it's not just a labour issue; there are many other cost considerations when deciding to outsource.

It is for these reasons I fully support the outsourcing of manufacturing when economically justified, as it is the most efficient use of limited resources, we increase our productivity and wealth, and we allow the poorer nations of the world a chance to better their lives. Read Here

Companies who do not remain competitive will not survive and eventually die. If a company in the US decides to go against the most economically favourable route (ie. to outsource or not to outsource), within a margin of course; they will likely underperform, lose investment and become a burnden on the economy through debt, lack of profits and poor opportunities for growth.

Don't be short sighted in saying that domestic products are always in our best interests, and don't assume outsouring is a bad thing. If this flag waving way of doing business continues, we could see a move towards isolationist inefficiencies typical of socialist regimes.

Food for thought.

DING! This is one of the first things that I learned in AP Macro Economics. Trade allows a country better suited to make a product produce more of it while trading that product which it can easly make with another country that makes the other product more efficiently. The US would sacrific more producing shoes or other products because the oppertunity cost of making another product is too high. The U.S. is a service economy, as somebody said above, labor here is skilled and be used for what the U.S. makes best, services.

 

[BlancoNino]

Outsourcing is good for the economy. You can't put a wedge into supply-and-demand. It makes me sick to see some people who would rather see a company go out of business than outsource.

 

[Todd33]

I just bought some New Balance shoes the other day.

 

[daniel49]

Originally posted by: Todd33
I just bought some New Balance shoes the other day.

Thats very american of you

From thier website:
Our philosophy
At New Balance we adhere to a unique set of philosophies. We focus on function over fashion; make shoes in multiple widths; continue to make many shoes in the US; nurture strong retail partnerships; take an "endorsed by no one" stance; and support grassroots initiatives. Although we have grown substantially over the past five years, we have not lost sight of who we are or from where we came.

 

[catnap1972]

Originally posted by: BlancoNino
Outsourcing is good for the economy. You can't put a wedge into supply-and-demand. It makes me sick to see some people who would rather see a company go out of business than outsource.

It makes me sick to see some people who obviously don't give a damn about this country, only the almighty buck.

Not mentioning any names...

 

[BlancoNino]

Originally posted by: catnap1972

Originally posted by: BlancoNino
Outsourcing is good for the economy. You can't put a wedge into supply-and-demand. It makes me sick to see some people who would rather see a company go out of business than outsource.

It makes me sick to see some people who obviously don't give a damn about this country, only the almighty buck.

Not mentioning any names...

1. Outsourcing creates jobs for the otherwise hopeless poor in 3rd world country. I shouldn't have to explain why that is a good thing.

2. Outsourcing keeps businesses up and running. It also allows them to expand.

3. Outsourcing makes clothing, appliances, electronics, etc more affordable for people.

4. Outsourcing is the product of a healthy economy.

We've moved beyond manufucturing jobs. They're crappy... and guess what? A lot of the people who lost their jobs in manufacturing to outsourcing got BETTER jobs!

 

[firewall]

Originally posted by: dmcowen674
Awesome

We need a lot more of this.

:thumbsup:

This is the exact corporate culture we need.

 

[Zorba]

Originally posted by: BlancoNino

Originally posted by: catnap1972

Originally posted by: BlancoNino
Outsourcing is good for the economy. You can't put a wedge into supply-and-demand. It makes me sick to see some people who would rather see a company go out of business than outsource.

It makes me sick to see some people who obviously don't give a damn about this country, only the almighty buck.

Not mentioning any names...

1. Outsourcing creates jobs for the otherwise hopeless poor in 3rd world country. I shouldn't have to explain why that is a good thing.

2. Outsourcing keeps businesses up and running. It also allows them to expand.

3. Outsourcing makes clothing, appliances, electronics, etc more affordable for people.

4. Outsourcing is the product of a healthy economy.

We've moved beyond manufucturing jobs. They're crappy... and guess what? A lot of the people who lost their jobs in manufacturing to outsourcing got BETTER jobs!

What happens when the next major world conflict breaks out and we have no manufacuring left in the US? Are we going to call up china and ask for more tanks to fight them with?

Quality going down the crapper does not help companies, a reason why I have stopped shopping at Wal-mart.

A doubt even a majority of people laid off from manufacturing have gotten better jobs. If they had, why have wages been at a stand still for years?

I agree that somethings are probably better outsourced, but I also agree with the person who said it is a fad right now. The company my wife works for sends a lot of their parts out inside of manufacturing them in house. Even when it makes no sense. Some of the parts they send out cost five time as much as if they did them inhouse. Most of the parts were also done inhouse for years, so it is not a question of capacity, etc.

 

[BlancoNino]

Originally posted by: Zorba
What happens when the next major world conflict breaks out and we have no manufacuring left in the US? Are we going to call up china and ask for more tanks to fight them with?

Quality going down the crapper does not help companies, a reason why I have stopped shopping at Wal-mart.

A doubt even a majority of people laid off from manufacturing have gotten better jobs. If they had, why have wages been at a stand still for years?

I agree that somethings are probably better outsourced, but I also agree with the person who said it is a fad right now. The company my wife works for sends a lot of their parts out inside of manufacturing them in house. Even when it makes no sense. Some of the parts they send out cost five time as much as if they did them inhouse. Most of the parts were also done inhouse for years, so it is not a question of capacity, etc.

Your first paragraph is absurd so I won't answer.

Wal-mart sells cheaper stuff. Sometimes poor people need inexpensive items. And as you said, nobody is forcing you to buy it.

Better jobs aren't necessarily better paying.

If outsourcing is best for the company, it should be done. It allows businesses to expand and grow.

If you think outsourcing is a bad idea, what is your solution to stop it? Pass more laws?

 

[Drift3r]

I wonder if they have any illegal immigrants working in their factories so that they can have that "Made in America" logo stamped on. I doubt they offer full health and dental to their workers or pay a decent wage to live off. Or as others have stated how much of their product is made in another country but assembled here ? This sounds like a feel good fluff story to me.

 

[OutHouse]

Originally posted by: ericlp
It's the only shoe that I will buy and I don't mind paying more for them also.

i have worn nothing but New Balance for the past 20 years. I buy them at sears when they are on sale.

Frontier Airlines rules hands down. best airline in the country.

 

[dmcowen674]

Originally posted by: catnap1972

Originally posted by: BlancoNino
Outsourcing is good for the economy. You can't put a wedge into supply-and-demand. It makes me sick to see some people who would rather see a company go out of business than outsource.

It makes me sick to see some people who obviously don't give a damn about this country, only the almighty buck.

:thumbsup:

 

[dmcowen674]

Originally posted by: Citrix

Originally posted by: ericlp
It's the only shoe that I will buy and I don't mind paying more for them also.

i have worn nothing but New Balance for the past 20 years. I buy them at sears when they are on sale.

Frontier Airlines rules hands down. best airline in the country.

A friend of mine just started working there.

He took a cut in pay but he is happy in his job, it is stable pay with benefits.

 

[BladeVenom]

I bought a pair of New Balance shoes once. They were made in China. The "Made in America" stamped on the box was there because the box was made in America.

 

[Colt45]

I thought newbalance was made in either the UK or china, depending on the model.

 

[Future Shock]

Originally posted by: BlancoNino

Originally posted by: Zorba
What happens when the next major world conflict breaks out and we have no manufacuring left in the US? Are we going to call up china and ask for more tanks to fight them with?

Quality going down the crapper does not help companies, a reason why I have stopped shopping at Wal-mart.

A doubt even a majority of people laid off from manufacturing have gotten better jobs. If they had, why have wages been at a stand still for years?

I agree that somethings are probably better outsourced, but I also agree with the person who said it is a fad right now. The company my wife works for sends a lot of their parts out inside of manufacturing them in house. Even when it makes no sense. Some of the parts they send out cost five time as much as if they did them inhouse. Most of the parts were also done inhouse for years, so it is not a question of capacity, etc.

Your first paragraph is absurd so I won't answer.

Go back to school - you missed a lot. What the OP is referring to is "strategic materiels sourcing", and involves the ability to produce and manufacture war-related and other strategic items during periods of global conflict. It is a major field of study and point of debate in advanced economics classes. Far from "absurd" - just over your head.

[/quote]
Better jobs aren't necessarily better paying. [/quote]

Try telling that to adults that actually have families to support.

If outsourcing is best for the company, it should be done. It allows businesses to expand and grow.

It also allows the formation of a national trade imbalance, that as a whole can be devastating to the entire economy in the long run. It is the equivalent of eating your seed corn because you are a little hungry now (in the form of this quarter's financial results), rather than planting it to ensure that you have food for the entire next year and the year after. The average CEO and exec management team expects to be well into another job at another company before the silos are found to be bare...

If you think outsourcing is a bad idea, what is your solution to stop it? Pass more laws?

Enforce many existing transfer pricing regulations and end the use of offshore corp headquarters to avoid US income tax, for a start...

Future Shock

 

[5150Joker]

Originally posted by: joshw10
The problem with "Made in America", while it sounds nice, is nobody actually opens up their wallet for it. A cheaper product of equal or near quality will always win. I'm sure a few people will chime in here and say "Yes, I do" but you're the exception. Wal-Mart stores are packed every day.

QFT, feel good articles are one thing but reality is totally different. Most people will always opt for a similar quality but lower priced product. If America wants to be competitive in manufacturing then it has to realize that blue collar workers simply cannot charge $15+/hr otherwise they won't get jobs. If they accept near or slightly above minimum wage, then we can talk.

 

[daniel49]

Originally posted by: Colt45
I thought newbalance was made in either the UK or china, depending on the model.

From thier website:
Our philosophy
At New Balance we adhere to a unique set of philosophies. We focus on function over fashion; make shoes in multiple widths; continue to make many shoes in the US; nurture strong retail partnerships; take an "endorsed by no one" stance; and support grassroots initiatives. Although we have grown substantially over the past five years, we have not lost sight of who we are or from where we came.

 

[TheSlamma]

One of my friends works for Frontier here in Denver, never knew that about his company. I'll have to let him know about this article.

 

[spike spiegal]

Enforce many existing transfer pricing regulations and end the use of offshore corp headquarters to avoid US income tax, for a start...

I like this guy.

I've always thought some sort of tariff on goods or services brought into the country from other countries with drastic differences in standard of living would work, although it would be tough to enforce.

 

[TheSlamma]

Originally posted by: spike spiegal

Enforce many existing transfer pricing regulations and end the use of offshore corp headquarters to avoid US income tax, for a start...

I like this guy.

I've always thought some sort of tariff on goods or services brought into the country from other countries with drastic differences in standard of living would work, although it would be tough to enforce.

I never thought it was fair that the US could outlaw sweat shop style labor, But a company can put it's HQ here then put it's factories in a country where we outlaw the type of work we ban and then bring in the item without penalty.

The hypocracy of our democracy.