Donald Trump is making headlines talking about how he is going to bring jobs back from China, India, and Mexico. Well, big surprise, Donald Trump is merely just trying to get attention like the attention-whore that he is. To be fair, all politicians do this. Hillary Clinton bragged about how voting Democrat in 2006 and 2008 would lower gas prices, mortgage defaults, and also end outsourcing….clearly that didn’t happen. But either way, people need to understand that outsourcing of jobs is actually a GOOD sign of an economy.
So whenever I hear people talk about outsourcing, they discuss how it is taking away American’s jobs. Ok. Yes, technically, that’s true. But here is the circular problem with worrying about that. Ok, so you want Americans to be paid $15 per hour to build a product that can be made by a worker at $1 per hour? Ok. So that increases the cost of that item by how much? A lot. Then it has to be sold to the hard working families in the U.S. who can’t afford to spend more on extra things. Which then leads to less sales. Which leads to decreased profits and revenues by the companies selling them, which leads to layoffs of the workers whose very jobs were being saved by forcing jobs to stay in the U.S.. Do you see where I am going with this?
You can’t have a booming economy with EVERYONE making more money and everyone living well AND have inexpensively made products for less financially advantaged people to buy. You can’t have your cake and eat it too.
Of course, many people in certain political parties will want you to believe that you can have lots of high paying jobs and low cost items. This is why a higher minimum wage doesn’t help people make more money. All that happens is that cost of creating goods and services goes up, which causes the very people the minimum wage is helping to pay more for the products they need to survive. It’s inflationary. And the people making $500K per year don’t care about paying $4 for something they were paying $2 for before but someone making $20K per year surely does.
I know I have brought up politics but this isn’t just about politics. It’s about common sense. Even China will be losing jobs to other poorer countries soon. Their economy is growing like gang busters, which is awesome! But their economy will change a lot in the coming decades to adjust for higher factory worker costs. I import products from China now and I am sure over the next few years, we will start to see increased costs. And that’s a good thing for China.
So stop complaining and just realize that jobs being outsourced means that EVERYONE in this country is making more money. Yes, someone who loses their factory job is out of a job, but they aren’t out of a job forever. They will get new skills and adjust. They may not make the money they made before, but that’s how the world works. Adjustments are made. As I always tell my father when he worries about fewer and fewer factory jobs: When the car was invented, it didn’t mean everyone who worked on a train lost their job forever.