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Recent as you guys all probably know outsourcing has been more and more prominent. The newest figures show the trade deficit at an all time high of $43 billion. We've seen a recovery for a long time now, but still we are not seeing more jobs recovered. In fact, were it not for people giving up looking for work and public sector hirings, the unemployment rate would have risen significantly. There are now more then 400 companies that have labor done overseas, and it seems more and more fields such as accounting and even law jobs are being exported overseas.
The orthodox economic wisdom would be to simply wait for more job to arrive, that it is good if services that can be done more efficiently abroad are done abroad, and that the excess labor can open up new more productive fields. Still it seems worrying, so quickly after manufacturing jobs fled the country and destroyed many well-paying blue collar jobs, more and more service, white-collar, and technical jobs are being sent abroad. Some economists have posited that with the factors of production being more mobile then ever, that production will simply move more and more to where an absolute advantage can be found; which in more and more cases seems to be the third world.
Still, beyond doing nothing, there hasn't been nearly as many proposed solutions to the problem as mentions of it. And there is of course the problem that if we did encourage more expensive US labor to be used when third world labor could be used, and other first world countries use third world labor, we risk that they get an advantage over us. So what do you guys think, if anything, should be done about this?
The orthodox economic wisdom would be to simply wait for more job to arrive, that it is good if services that can be done more efficiently abroad are done abroad, and that the excess labor can open up new more productive fields. Still it seems worrying, so quickly after manufacturing jobs fled the country and destroyed many well-paying blue collar jobs, more and more service, white-collar, and technical jobs are being sent abroad. Some economists have posited that with the factors of production being more mobile then ever, that production will simply move more and more to where an absolute advantage can be found; which in more and more cases seems to be the third world.
Still, beyond doing nothing, there hasn't been nearly as many proposed solutions to the problem as mentions of it. And there is of course the problem that if we did encourage more expensive US labor to be used when third world labor could be used, and other first world countries use third world labor, we risk that they get an advantage over us. So what do you guys think, if anything, should be done about this?
As much as I don't like this, I have to agree. You made your bed, now lie in it. That's what sucks when you have a laissez-faire market.
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