Originally Posted By: diver1972
Since this dialogue has gone on for a bit now, I'd like to clarify my intent here: to engage in friendly debate on important topics. While my questions are often pointed and direct, they're not intended to ruffle feathers; however, I understand that inevitably occurs. Thus, please understand that any feather-ruffling that has or may occur is an unintended side effect of both the passionate topic and rather flat communication medium upon which we exchange our thoughts.
I get that, but yes, there are certain things we are most definitely not going to agree on here despite the civility of the debate.
Originally Posted By: diver1972
Yes, you're right about that historical element. However, here in the early 21st century, both technological innovation and the relatively low cost to transport goods across very long distances (i.e. relatively low cost of fuel) are largely responsible for us even being able to enjoy this higher standard of living than would otherwise be possible. For example, if all the electronics you might ever purchase were manufactured either local to you or in "nations with a common standard of living", you assuredly wouldn't be buying nearly as much of them because you likely wouldn't want to buy them (or possibly couldn't afford to buy them) due to the higher cost of the product due to the higher labor costs and higher corporate taxes that
must be passed on to the buyers. So, while you might be technically correct that there aren't any cost savings, per se, there are definitely economic benefits to consumers via avoidance of price increases or a slower pace of price increase for any given product.
I don't agree, and here's why:
For almost every out-sourced "made in China" product there is, if you look, a first-world sourced version of the same product selling for a similar price. I created a thread on here about the parts I've bought for my M5, none of which are made in China, and all being priced equally or even less expensive than the Mexican-sourced parts for my Ford. That shouldn't be possible based on what you are theorizing here.
Our higher standard of living has been that way long since before the widespread availability of electronics, and this ties into what Trav mentioned earlier about America being the envy of the world back in the 50's, 60's....etc. The standard of living was high then, just like it is now. But products were not imported from China then, nor were jobs sent overseas.
Regarding electronics purchasing practices my home network consists of about $5,000 worth of Cisco switching and routing gear (some of it US-made), my computer case was made in Japan and is a beautiful aluminum piece....etc. It used to be nice when I could buy ATI video cards, which were made in Markham, Ontario, about a 60 minute drive for me. That was not very long ago and they were competitively priced. I will buy first-world sourced electronics whenever I can. I don't spend frivolously in this area, I am not a "Walmart shopper". Every purchase is calculated and researched before it is made. And yes, COO plays a role in my purchasing decisions.
My speakers are vintage Cerwin-Vega, made in the USA, my sub box is McIntosh, as are the tweeters the CV's were re-powered with. My amplifier is Yorkville, made in Toronto, Ontario. I put my money where my mouth is sir. The effect on my personal purchasing practices by products not being made in China would be relatively small compared to somebody who power shops for the latest and greatest not giving the origin of those products as much as a passing glance.
Originally Posted By: diver1972
That sounds like a very outdated "entitlement" perspective that's unsustainable in any economy, IMO. "the North American standard of living" sounds either a bit ignorant (i.e. assuming that there's only one) or perhaps even communistic (i.e. there should be only one and I get to define what it is). You're welcome to clarify your position on this for me.
How is a cyclical self-feeding economy unsustainable? I mean based on the current economic climate with people like yourself fawning over the merits of out-sourcing, I fail to see how this has worked out any better? Multi-trillion dollar deficit, soaring unemployment....etc. Those don't strike me as the signs of a successful system. If anything sounds outdated it is the posturing that what worked in the past is irrelevant and we must embrace this new "global economy" which seems to be playing out just swimmingly for a growing portion of the unemployed population and a country headed for bankruptcy. That certainly seems like a modern recipe for success to me
The "North American standard of living" is no different than the German standard of living, the French standard of living, the English standard of living, the Japanese standard of living, the Australian standard of living....etc. It isn't hinting at communism or ignorance, it is defining a quality of life that first world nations have and that, in a first-world nation, the people, those who are willing to work, should be able to experience.
Yes, it may sound a bit "entitled", but entitlement in the current economic climate speaks of those who feel they can sit on their posteriors and suck back tax dollars because it pays better than a job at Walmart. It speaks to those who feel the large corporations and the successful need to be even more heavily taxed because they are "making too much money". That's not what I am talking about AT ALL. People who are willing to work have the right to make enough money to feed their families and live comfortably. That's part of what defines a first world nation!! So removing those jobs from the country (and they are not being replaced... I'll get to that later where you address that) just to increase profits for a select few is not a viable economic long-term game plan. It will lead to a collapse as the unemployment continues to rise.
Originally Posted By: diver1972
Respectfully, I was simply addressing your vilification of "the corporations" for "eliminating" jobs, so I don't view that as muddying the issue at all. Is your view that you expect "the corporations" to not only create jobs, but also to indefinitely maintain those same jobs in the same country in which they were created (that is, if that country is a first-world one)?
Indefinitely? No. Jobs change, companies change. Product changes, focuses change....etc. But being able to provide employment to a company's home country should most definitely take precedence over sending those same jobs overseas, unemploying your neighbours, just to earn an extra few bucks on a trinket that is going to be sold for the same price as it was when it was made here. It's called having a corporate conscience and is not a foreign concept.
Originally Posted By: diver1972
Finding out what people are willing to pay for and doing that. And I'm not implying that it'd be at the same pay rate as previous. This can take different forms such as changing industry, or changing career, or creating a business. It's called adaptation and it's been occurring for millennia.
LOL! That's exactly what is happening and why we are having more and more people living off the system! They are working at these jobs that pay nothing because their jobs that were able to feed their kids got taken away!
Empires have been collapsing for a millennia. They rise and fall. Saying that people have been adapting to that really doesn't explain anything. Adapting to your decline simply means you won't starve tonight. It isn't a long-term solution. And creating a business doing what? Most small businesses were crushed by the giants like Walmart. There are only so many ways to peddle the Chinese trinkets. Not everybody can provide a service, at the end you need to MAKE something; manufacturing. But that's where the vacuum is, because that was one of the easiest things to send overseas.
Originally Posted By: diver1972
Additionally, there are not a finite amount of jobs because new positions are continually being created and older positions continually being eliminated (with outsourcing being only one of many reasons). Think of these: telephone exchange/switchboard operator, telegraph operator, elevator operator, lighthouse operator, clockwinder, and dunny man.
It isn't whether there is a finite amount of jobs or not, it is whether more jobs are being created than eliminated and that is not the case. That's why you have soaring unemployment. The people that lost their manufacturing jobs are NOT finding new jobs! While jobs, their definition and placement within a hierarchy change with the evolution of technology and product, ultimately that evolution continues to employ people. It would be foolish to argue that jobs need to remain the same; to persist indefinitely. But there is a significant difference between a job evolving and a job disappearing because it was cheaper to have somebody do it overseas.
Originally Posted By: diver1972
Lastly, jobs aren't the only way to earn money (i.e. create a business).
Only so many are business-minded sir. A person's capabilities are what they are. Some people can sit on a line and put together radios all day. That is what they are good at, assembling things. I would much rather Jim make $15/hour putting together radios in Arkansas and feeding his family than making $8.00 working part-time at Walmart and getting assistance because he can't feed his family anymore. If Jim is making the $15/hour, he's a tax-paying citizen contributing to the financial health of his country (no matter how small that contribution might be). If Jim is working the $8/hour part-time gig and getting assistance, he is a burden on that same system, a cost that you and I must cover with the money we make.
Originally Posted By: diver1972
I never implied that it was easy.
It mustn't be easy.
But if there are no decent paying jobs that fall within the abilities of the individual then that individual cannot make a living and will become a burden on the system. Decent jobs for these people used to exist. They now exist elsewhere. A place that isn't North America.
Originally Posted By: diver1972
You're claiming that a given country experiences a net loss simply via the elimination of jobs in one or more geographical areas within that country? That's faulty logic.
No, I'm claiming the opposite. That as long as the job loss in one area by a given corporate entity means job creation from the same corporate entity elsewhere in the country, it all evens out. But when those jobs are sent OVERSEAS, then there is a net loss. The jobs are removed from the economy.
Quote:
For example: that company likely has a significant quantity of shareholders (even those who are indirectly invested via mutual funds, etc.) who are also residents of that same country where jobs were eliminated/outsourced. If the relocation of jobs helps that company either maintain a given margin or increase its margin, those shareholders benefit, wouldn't you agree?
But when the shareholders make more money at the expense of thousands becoming unemployed because it was cheaper to have their jobs done in India, then it is a net loss to the country, because somebody has to pay the bills. That's the point I was making about corporate conscience.
Originally Posted By: diver1972
Why does it matter to which other country they're exported?
Because the cost of doing business in a first-world nation is what it is to pay for the regulations and policies that are in place regarding the environment, living conditions....etc.
This is why the EU has a myriad of tariffs and anti-dumping laws in place to regulate this sort of thing. They do it to level the playing field and to prevent Chinese corporations (and corporations that have moved their manufacturing to places like China) from undercutting those companies that have kept their manufacturing base in Europe and comply with the laws and regulations that are in place for the manufacture of that product.
It is quite obvious that we are not going to come to any sort of agreement here. You aren't going to convince me that any of what you've stated is for the net benefit of America or Americans. I see things quite differently than you. And it sounds like we live quite differently as well. So on that note
to disagreement as I think we might as well end it here.