Mondo (Premier Login Oscar50) Forum Owner Posted Feb 26, 2009 7:52 AM
Long ago when the outsourcing thing first started, in a response to investors wanting higher returns on investment really, I noted that these would work for the short term. A big part of making it work is to be absolutely ruthless in not allowing workers to organize. Which is a right, one that many extreme right wingers detest.
Inevitably though, it seems that the standard of living in the outsourcing country will improve. The wages will go up, and the plants will move to a cheaper alternative, and so on. In the meantime, back in the West, the people that used to do this work, are now marginalized a bit more. Taking lower paying jobs. Lower paying jobs which takes them out of that consumer class to some degree.
You probably see where this is going. Eventually there are no markets left. If the people that were making too much money ostensibly were a large part of the consumer group, then as they make less money their consumption goes down. So even if those products can be made cheaper, at some point -- who is going to buy them?
What bothered me about the Japanese story, is the huge number of temporary workers. Read "no benefits", and lower income. Is this really a better future? Sure I agree that the greed factor, and addiction to stuff needs to end. But we need some balance. Decent paying full time jobs with benefits. Sounds like a good idea to me, and those folks can at least do some consuming, some purchasing, keeping the economy healthy.