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Originally Posted by rickholio
I don't see how exporting work to other countries builds trade. Efficiency, yes, sure, but "productivity" (ie. more work out of less people) is already cutting job availability in most sectors that aren't service-related.
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You assume that we aren't exporting anything else.
What happens now is that your average Indian citizen can't afford to buy something made in the USA, but you increase their wealth and style of living and suddenly they want to buy that USA-made item.
Not only that, but businesses in India may suddenly find that it's cheaper to make something in the USA because we are more efficient at making that product, and so they decide to hire an American company who suddenly grows and needs to hire more people.
Thats just 2 cases where a USA company is suddenly in need of more American workers to meet demand from a new market that didn't exist previously.
As for the "Wal-Martization", you are right, in the short term a few more people will be shopping at Wal-Mart. But the expansion companies (mostly small businesses) will make due to the extra capital will create more jobs that outsourcing can't fill.
Don't blow the problem out of proportion either, not every job is going overseas, and the only people that will really be affected by this are people working in certain industries who are unwilling to re-tool and get another job. I liken it to when Microsoft networking overtook Novell networking, all the Novell certified people suddenly found themselves without a job. Thats a market change, and that shit happens, now did those people suffer greatly because of it? Of course, but you don't hear from the ones who saddled up and re-tooled, got themselves an MSCE certification and got their job back (or never lost it in the first place). You hear from the ones who were so set in their ways that all they thought to do was piss and moan about how evil Microsoft is.
That said, I think there should be a Government program in place to financially help and retrain workers displaced by outsourcing, remember economics doesn't treat people "fairly", people do.