I am not an economist nor have I played one on TV. My first year economics course was early in the morning before coffee has any effect on me, combined with my then undiagnosed math disability I have no clue what I was supposed to have learnt. I have read Adam Smith and some other books and articles about economics to help shape my view of things. It doesn’t take any economic expertise to understand outsourcing. People like paying less and keeping more of their money.
If companies are to make money they have to have competitive prices, which means they have to lower the costs. Yes our banks are massive instituions with billions in profit but they are also uncompetitive institutions that are becoming to big to succeed. Transformation costs money and the current market climate means they must not raise fees or interest rates, the primary means to make money. So they look for savings by shipping jobs over to India, nothing new in this. European companies used to ship jobs off to North America to save money.
Attacking the Foreign workers, either overseas or here as guest workers needs to stop. These people also have families to feed and other bills to pay. We will not change things by attacking others struggling to make a living. Those workers, either here or abroad may end up having a little extra to buy Canadian goods and services. Are they likely to if Canadians mistreat them?
As the blog title says we the shoppers demand outsourcing. Every time we go with the lowest price and demand even more for less we ask our businesses to lower their costs. With labour being a major cost it is inevitable that companies will seek the lowest price. It is impossible to have high wages and bargain prices. Maybe next time people should realize this when going into a discount place and support higher wages by accepting higher prices. Perhaps starting with the local business that doesn’t have the global supply chain to force wages down will help reverse the trend.
The culture of disconnecting what we pay from what we are paid must end if things will change. If we want higher wages the price is higher costs and vice versa. The culture of massive greed and endless growth must also end. Growth for the economy can be like a cancer destroying what is needed for the future. As a global society we need to use our resources better, especially human resources. Remember this next time you are shopping for a deal, does the price mean someone has to take a pay cut or are used as a slave? Would you work for such low wages? If not then why ask someone else to?