Is globalization without regulation a race to the bottom?

[no fat chicks]

Will allowing companies to ship jobs overseas to whatever country allows its people to be exploited the most ultimately bring wages down for the rest of the world in order to compete?

How do we solve this?

 

[Rod1]

Will allowing companies to ship jobs overseas to whatever country allows its people to be exploited the most ultimately bring wages down for the rest of the world in order to compete?

How do we solve this?

Solve what? income inequality? with proper taxation and free education + healthcare.

 

[Valhoven]

Outsourcing human capital (on a mass scale) brings about quite a few negative consequences; one of them, I think, is spot on to what you mention here; that, as domestic jobs move internationally, said jobs slowly become obsolete as their domestic capacity diminishes with there no longer being a need for it.

This is maybe gloomier a response than what you expected because wages cannot be low if there are at all no wages.

Anyone fancying economics here can probably answer you outright though.

 

[Awesomesauce]

The trick to understanding this effect is accepting two things, A) the overabundance of labor as a resource, and B) the reality of substantial differences in the difference of subsistence level living in different areas.

When a country in Africa attempts to modernize in a way that would allow it to compete with other jurisdictions it doesn't just have to overcome its natural technology disadvantage, it also has to overcome an infrastructure disadvantage.

Without an excess of jobs what we see is a subsistence level pay effect. That is an inevitability regardless of trade factors.

To continue the example above. If costs 1 GSD a day to live in this jurisdiction in africa then paying a worker 1.1 GSD may be enough if the population is desperate enough. Desperation that can be created in a system where you don't work and you don't eat and there aren't enough jobs.

BUT

If it costs .84 GSD to live in survive in another jurisdiction, then a company would only have to pay .92 GSD to provide a relatively equivalent volume.

Now if both of these jurisdictions can only offer low labor costs as a natural advantage then one will naturally benefit to the extent possible from the work.

Now this is obviously incredibly reductionist and the reality is much more complicated. But as core effect, it has seemed to hold true as these low labor cost districts have continued to languish in poverty for decades with no end in sight.

 

[5H3RD0G]

Let's do some math my fellow thinkers. Jobs are trending towards robots in the future due to lower cost but the fact remains still a mass populace resides. I wouldn't worry too much about overseas jobs because it is necessary in order to keep businesses alive especially the smaller variety. If it's a huge company that has multiple income components they should be fine, the singular businesses can't survive because of profit.

 

[Still your boy]

3d printers
+

Augmentations

+

The world is about to change @ around 2030.....Technology will bring more equality to the world....Just 20 years ago, most people didn't have a cellphone...Now a shitload of people do, their quality of life increased.


Quality of life will increase all over the world....Wages, not sure about that but Americans/Westerners have enjoyed relatively high wages for a long time, it's time for third world countries to get a piece of the pie.

 

[VivaRevolution]

3d printers
+

Augmentations

+

The world is about to change @ around 2030.....Technology will bring more equality to the world....Just 20 years ago, most people didn't have a cellphone...Now a shitload of people do, their quality of life increased.


Quality of life will increase all over the world....Wages, not sure about that but Americans/Westerners have enjoyed relatively high wages for a long time, it's time for third world countries to get a piece of the pie.

Living off our consumption until it is completely destroyed. Pay 3rd world workers a living wage, and you increase consumption allowing more people a piece of the pie.

This idea that it is OK for 3rd world nations to take 1st world jobs, and replacing them with 3rd world wages, and destroying this consumption is a race to the bottom.

 

[Jack V Savage]

Will allowing companies to ship jobs overseas to whatever country allows its people to be exploited the most ultimately bring wages down for the rest of the world in order to compete?

How do we solve this?

Not really an issue with present technology. Overwhelmingly, most economic activity is local (note that even with imported goods, most of the money spent by the consumer is staying in the U.S.). Notice how jobs in the U.S. aren't typically outsourced even to nearby areas within the country where wages are lower.

 

[Byron Carter]

My main issue with sending jobs overseas, is that it allows for companies to enjoy all of the protections of the United States, including our Law Enforcement and Military, while sending their jobs (and capital) to competing countries.

 

[panamaican]

There's nothing to solve. The jobs that eventually get outsourced are those jobs that are simple enough for lesser skilled labor to complete. You know the labor is lesser skilled because it lacks the leverage to command higher wages. This frees up the local labor supply to pursue those skills that still command high wages.

Plus when you add in the pace of technological improvement, low skilled labor overseas isn't the only competition and overly focusing on them can be misleading. The wage competition of technology is relative to the local labor supply. So we could, hypothetically, prevent all wage outsourcing to cheaper countries and all it would do is fuel the influx of cheap technological labor.

A more important element is to start thinking about wages and their relationship to labor and cost of living in a more fluid fashion. Anyone who asks knows that my opinion is that technology will eventually winnow the average intellectually capable people out of the workforce.

 

[groo]

Living off our consumption until it is completely destroyed. Pay 3rd world workers a living wage, and you increase consumption allowing more people a piece of the pie.

This idea that it is OK for 3rd world nations to take 1st world jobs, and replacing them with 3rd world wages, and destroying this consumption is a race to the bottom.

Not for the owners. For them its higher profits.

 

[$uperman]

World wide trade make the world richer, because companies compete with eachother to make better and cheaper products/ services. So the people of the world get more and better products/services. Product and services is wealth. So the population of the world gets wealthier. And you can see that in real life, the population of the world get wealthier.

People in poor countries work for little money for companies, because it's better than their alternative. So their lifes are improving too.

And that the wages are going up or down is not a problem, because money is not wealth it is an indirect trade thing to get products and services. So it's about products and services.

And their is enough work for almost everybody, because work is making products/services that other people want and people want more and more. So there will be enough work for everybody who wants to work for the money he or she is worth.

 

[Edgar Allan Hoe]

I would like to see the jobs come back and I would be willing buy a few less Big Macs and few less other crap so offset the inflation of American made goods.

People need fucking jobs in this country and they can't all get useful college degrees and they shouldnt have to work at fuckin McDonalds.

Then I think about what happens when a country like China catches up to us AND has a stranglehold on manufacturing. What then?

The more self sustaining America can become in energy and industry the safer and stronger we will become. But we need real rules to keep these greedy corporations from fucking up that dream. And we need to buy less shit.

 

[$uperman]

I would like to see the jobs come back and I would be willing buy a few less Big Macs and few less other crap so offset the inflation of American made goods.

People need fucking jobs in this country and they can't all get useful college degrees and they shouldnt have to work at fuckin McDonalds.

Then I think about what happens when a country like China catches up to us AND has a stranglehold on manufacturing. What then?

The more self sustaining America can become in energy and industry the safer and stronger we will become. But we need real rules to keep these greedy corporations from fucking up that dream. And we need to buy less shit.

You don't understand free trade.

You don't understand comparative advantage.

You don't understand that there are no fixed amount of jobs.

You don't understand that inflation is created by the banking system.

 

[no fat chicks]

Not really an issue with present technology. Overwhelmingly, most economic activity is local (note that even with imported goods, most of the money spent by the consumer is staying in the U.S.). Notice how jobs in the U.S. aren't typically outsourced even to nearby areas within the country where wages are lower.

No I don't actually, last I checked most vehicles people drive are made in Mexico

 

[no fat chicks]

World wide trade make the world richer, because companies compete with eachother to make better and cheaper products/ services. So the people of the world get more and better products/services. Product and services is wealth. So the population of the world gets wealthier. And you can see that in real life, the population of the world get wealthier.

People in poor countries work for little money for companies, because it's better than their alternative. So their lifes are improving too.

And that the wages are going up or down is not a problem, because money is not wealth it is an indirect trade thing to get products and services. So it's about products and services.

And their is enough work for almost everybody, because work is making products/services that other people want and people want more and more. So there will be enough work for everybody who wants to work for the money he or she is worth.

That's great in all but when your allowed to pay workers slave wages your not competing to be technically advanced your competing to see who can pay their workers the least

 

[Edgar Allan Hoe]

You don't understand free trade.

You don't understand comparative advantage.

You don't understand that there are no fixed amount of jobs.

You don't understand that inflation is created by the banking system.

You don't understand how this is

You don't understand free trade.

You don't understand comparative advantage.

You don't understand that there are no fixed amount of jobs.

You don't understand that inflation is created by the banking system.

Yea I'm not a couch economist like you. I just know this country has duty to protect itself and it's people and shipping out all jobs and expecting everyone to work while collar is fucked up.

Please school us on what's best for America.

 

[Jack V Savage]

No I don't actually, last I checked most vehicles people drive are made in Mexico

I don't get this response. This is what I said:

"Not really an issue with present technology. Overwhelmingly, most economic activity is local (note that even with imported goods, most of the money spent by the consumer is staying in the U.S.). Notice how jobs in the U.S. aren't typically outsourced even to nearby areas within the country where wages are lower."

To clarify partly, most of the cost of a product made in China (for example) is added in the U.S.--shipping, moving the item around the country, floor space, U.S. employees, etc.