30 Days episode - Outsourcing?

What do you think of the show? What do you think of the unrestrained - almost endorsement by the US government - ability of US companies to move jobs overseas because it costs them less? If their point is to compete by doing this, compete with whom? There could be a lot of answers to this, but if their largest focus is in the markeplace, then what would be the point if too many people are out of work?

Answer:
You as a consumer have one of the biggest voices in outsourcing. The consumer as a whole constantly wants more 'stuff' but have a relatively fixed income. Therefore we want more, but want to pay less for it.

Therein lies the rub. As we buy cheaper, outsourced goods, we actually sacrifice our own jobs. If I put the gun to my head and pull the trigger, should the government be the blame? Nope.

Finally, foreign sourcing of goods as a sole means of doing business is very short-sighted. Too often it overlooks the lack of transportation costs (rising with fuel costs), storage, inventory, management and other overhead costs that were normally absorbed by manufacturing operaitons. Lack of supply, poor quality control and a myriad of other issues must be overcome, which costs time and money.

At the same time, many business understand that developing Asian economies do offer one of the largest growth markets. Employees in these countries are slowly becoming consumers themselves. A smart company knows they should be in a position to sell goods into this market, often locally made.

Finally, it is very dangerous for a government to interfer in business affairs. Government bureacracy is far from a model of efficiency, so how can it adequately manipulate a free market? Tariffs on Japanese cars really did nothing for Ford, GM or Chrysler except but them a few years. Well it may have helped prompt foreign car assembly plants in the states. But Ford, GM and Chrysler still really haven't learned to compete. Do you want your tax dollars to subsidize the chairman of any one of these corporations salaries? For what those people make, I can't feel sorry that the company struggles. Unfortunately, its the average guy who bares the brunt of the pain.

Since the lawmakers in Washington DC are top businesspersons in their own way, do you think they'll ever really punish poor business decisions? Can you imagine if the board or directors couldn't be paid unless the company was doing well, but the person working the production line would? I just don't see that ever happening. Other Questions and Answers:

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30 Days episode - Outsourcing?

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