Outsourcing and the U.S. Economy

It’s about time someone spoke the
truth concerning outsourcing. The politicians sure
won’t. They prefer to do finger-pointing saying it
is “his fault”. It is those greedy manufacturers
who want to make bigger profits by having cheap
labor in Asia perform your task for less money.

Did anyone ever tell you that if it wasn’t for
outsourcing you might not have a job? Did anyone
ever tell you that the underwear, shoes, jewelry
and hundreds of other items you own would cost
much more if it wasn’t for outsourcing? Probably
not.

Sure, many tasks are being sent
overseas. Why? Just because it is cheaper? No,
because the manufacturer that item had to do it in
order to be able to compete with other companies
making a similar product. If your company or any
company cannot remain in business then they will
cease to exist and you will be out of a job. As a
former manufacturer I will tell you it is
dog-eat-dog out there and every company is doing
its best to maintain sales and profits. The
company did not go into business to make products
and give you a job; they went into business to
make money and if they can’t do that they (and
you) will be gone.

Profits is not a dirty word. Again if
it wasn’t for profits you would not have a job.
The guy who owns the small business or the
thousands of stockholders who own the big
companies expect that company to make money or
they will sell their shares and you will be gone
too.

When you work for someone you want to
do everything possible to contribute to their
bottom line. Turning of the extra lights, keeping
your machine properly maintained, getting a
shipment out to a customer even if it means
staying a few extra minutes and many other little
things that you know better than I.

Until about 1975 we did outsourcing
and no one objected to it. The widget manufacturer
stopped making screws and bought them from the guy
across town or in the next state who made exactly
what he wanted and at a price cheaper than he
could produce them in his widget factory. Now we
buy the screws from China and India at a price
that is half or less than those made in the USA.
If not each widget might cost dollars more and be
enough to lose business to a competitor. If the
widget company did not outsource there could be a
strong possibility they would go out of business.

Outsourcing is not a U.S. phenomenon. It is
happening to Canada, Germany, Japan, England,
France, Australia and many other countries. Even
Mexico is losing jobs to Asia because they can
produce the same quality goods and services
delivered here for less.

Outsourcing is not only here to stay, but
is going to expand as competition becomes even
more fierce.

http://ezinearticles.com/members/mem_pics/Al-Thomas_231.jpg" border="0" alt="EzineArticles Expert Author Al Thomas">

F*R*E*E investment letter. http://www.mutualfundmagic.com

Author of best seller "If It Doesn't Go Up, Don't
Buy It!" Copyright 2004 Albert W. Thomas All rights
reserved. Comments to al@mutualfundmagic.com
Former 17-year exchange member, floor trader and
brokerage company owner.

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