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Originally Posted by Stamen
Like I said, the average person in India is too poor right now to purchase our goods. Thats changing now, and in the last 2 years India's non-oil imports have raised by more then 30% per year.
And as far as things being cheaper to make here in the USA, Japan and Europe send alot of things over to the USA because we are more efficient at pumping them out. For example, in India the average worker may be able to make 5 widgets a day, but here in America, the same worker on a more efficient machine can pump out 50 widgets a day.
I can afford to pay 10x as much for the American worker, because I'm getting 10x the product daily.
So this "potential" is reality... it is what has happened and what is happening.
And for you to insinuate that these people affected by outsourcing end up working at Wal-Mart is ridiculous. Like you said, Wal-Mart is as low as you go, but its also a long way down with many stops along the way if you are eager to work. And Wal-Mart was growing and people were working there on shitty wages long before outsourcing was an issue, but thats a whole other bag of worms.
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once quality of life improves and the good people of india get some money and suddenly think they deserve more per hour, the US companies will be out of there and moved on to the next country. they aren't going to want to pay employees more if they don't have to. not to mention safety regs that aren't in place in most third world countries and enviromental regs. once they come into play, its another reason for outsourced companies to jump ship. thats the whole reason they outsourced in the first place. in the end the only cares these companies have is whats good for them right now. i highly doubt they are looking 20 years down the road right now when it comes to such decisions. but hey, if profits increase this quarter, it looks good for investors.