But when voters vote against outsourcing by electing someone who enacts laws to punish companies for this, they are imposing their will onto consumers who want the benefits of cheap foreign imports. It's not just a personal choice by the voter, but a dogma that they are imposing onto consumers which curtails the choices of consumers and forces them to pay higher prices.
Your blind worship of the consumer is getting ridiculous. Consumption doesn't exist in a vacuum, and people impact other people's choices by their choices more than you think.
Another example: Is a drug addict who spends all his money on crack cocaine "always right" . . .
If it's criminal, maybe not. But that's not what we're talking about. Obviously criminal behavior is wrong, whether committed by a consumer or by a wage-earner or by an investor or by a welfare recipient or whoever. We're not talking about that.
Criminal activity is just something that government says is not allowed. In democracy that ultimately means the voters, at least in principle. So why should the wishes of voters trump the consumer in this case, but not in some other case?
You are just arbitrarily picking and choosing where you think the consumer is right, and when the voter is right.
Why should ANY consumers, or even ONLY ONE consumer, ever be forced to pay a higher price than necessary, if there is a less costly way to produce that product or service?
The fallacy here is that just paying someone less doesn't make the production any more efficient, all other things being equal.
The cost stays the same, it's just paid by someone else.
It's not a win when the consumer doesn't have the money to buy the cheaper goods.
Except, of course, if consumers all get their money from picking money trees, which is what certain people seem to believe.
Politicians have to 'lie' (i.e. say things you disapprove of) because they have to deal with the real world as it actually is, rather than a right-wing fantasy economy. They're relatively sophisticated, and have to deal with a much more complicated world.
They do. I outsourced the ceo-of-a-car-company position every time I bought a Japanese car.if outsourcing is so great why don't ceo positions get outsourced?
Two reasons.So, if people as voters want to keep the jobs for factory workers, what are you complaining about?
But I'm asking WHY they want to keep those uncompetitive jobs instead of enjoying the benefits of the lower prices we gain from increased trade and competition and outsourcing.
So, if people as voters want to keep the jobs for factory workers, what are you complaining about? That's just another way of providing to people what they want.The purpose is to provide to people what they want, as much as possible.
Two reasons.But I'm asking WHY they want to keep those uncompetitive jobs instead of enjoying the benefits of the lower prices we gain from increased trade and competition and outsourcing.
(1) A voter is more afraid of losing his job than he is of having to pay a higher price for some good or service. The utility of money and the disutility of risk are nonlinear, so the fact that the overall practice of outsourcing has a positive expected value to him in dollar terms doesn't necessarily mean it isn't negative in utility terms.
(2) An American voter is almost certainly a member of the 5%; if he's educated then he's probably a member of the 1%. His monkeysphere consists of others like himself: other 1%ers and 5%ers. Outsourcing is the practice of 0.1%ers in America trading directly with the 95% who are in foreign countries but are competitors of 5%ers in America, thereby cutting the 5% out of the deal. To outlaw outsourcing is to force the 0.1% to trade with the 5% instead of trading with the 95%, thereby transferring a great deal of wealth from the 0.1% and from the 95% into the pockets of the 5%, and especially into the pockets of the 1%. Of course they choose to do this. This is not based on hatred or bigotry against the 95%; the hatred and bigotry is reserved for the 0.1%. The interests of the 95% are neglected simply because there are too many of them and they are too far away to be part of the 5%'s monkeysphere.
If you aren't familiar with the monkeysphere concept, it bears reading up on.
"What do monkeys have to do with war, oppression, crime, racism and even e-mail spam? You'll see that all of the random ass-headed cruelty of the world will suddenly make perfect sense once we go Inside the Monkeysphere."
How is society made better by punishing a small minority to give everyone else an insignificant subsidy? That's a textbook definition of tyranny of the majority.Your blind worship of the consumer is getting ridiculous. Consumption doesn't exist in a vacuum, and people impact other people's choices by their choices more than you think.
You haven't pointed out any harm consumers do to others by having access to lower-priced foreign imports. Since this is a benefit everyone can take advantage of, as it's in their interest, it's good for the whole economy, not any one interest group.
Whereas to protect uncompetitive workers who could be replaced by cheap labor or by machines is something that benefits only a small percent of the population and imposes costs onto everyone.
How is society at large made better off by giving to a small class such a subsidy that everyone else has to pay for?
And why should consumers be exempt from this criticism?Another example: Is a drug addict who spends all his money on crack cocaine "always right" . . .
If it's criminal, maybe not. But that's not what we're talking about. Obviously criminal behavior is wrong, whether committed by a consumer or by a wage-earner or by an investor or by a welfare recipient or whoever. We're not talking about that.
Criminal activity is just something that government says is not allowed. In democracy that ultimately means the voters, at least in principle. So why should the wishes of voters trump the consumer in this case, but not in some other case?
The voters can make anything illegal, or rather, vote for a candidate who could make it illegal. But why should they make something illegal? Why should they vote that way? Why should they vote to ban evolution? or to behead atheists? The voters need to have a reason for wanting such a thing. Anything they want to ban they should have to have a reason for banning.
Bullshit. Just moving money from one pocket to another is not more efficient.Why should ANY consumers, or even ONLY ONE consumer, ever be forced to pay a higher price than necessary, if there is a less costly way to produce that product or service?
The fallacy here is that just paying someone less doesn't make the production any more efficient, all other things being equal.
It does make it "more efficient" in that it makes the cost lower and thus the price to the consumer lower, which is an essential element of what "efficient" means.
How does their value go down, if as you said, the quantity and quality of the work being done stays the same, and the demand for the product stays the same?The cost stays the same, it's just paid by someone else.
I.e., it's paid by that "someone" who is paid less. And what's wrong with that? Aren't there times when someone's value decreases and so they're paid less? Why shouldn't they be paid less if their value goes down? Why shouldn't the price paid to a seller, or the price paid for anything, go up or down as the value of what is sold changes?
You used the word "obviously" three times without actually showing anything. Of course outsourcing is a continued activity, not a one-time thing. But the point is you'd have to show that HP increased outsourcing and fired people during that time period to make printers cheaper. Sure, they may have done that. But you have not demonstrated it in any way. You might as well have claimed that the price reduction was "obviously" due to sun spot activity.There's no way to identify exactly how much of the price reduction was due to outsourcing and how much to other cost-saving factors. Obviously the improved technology makes much of the cost-savings possible.
But it is a virtual certainty that some of the price reduction is due to outsourcing. All cost savings contribute to the lower prices. It's not due to any one factor alone.
You'd have to show that HP increased its outsourcing during between the time when you bought the printers . . .
I.e., that it continued its outsourcing, which of course it did. Outsourcing is not something that happens only once. The time period was from about 1990 to 2010. Obviously HP did lots of continued outsourcing during this period. And the company obviously saved on costs by doing this, and it is virtually impossible for this savings not to have contributed to lower prices or keeping down prices.
And that is not what I said, as I listed several other factors that have contributed to reduced cost of printers. You are the one who used the example and tried to insinuate that the price drop was "obviously" due to outsourcing.. . . and that the cheaper price is not fully explained by increased automation in HP plants, better processes, or more advanced technology becoming available.
EVERY cost savings contributes to lower prices. It's silly to say that price savings has to be due to only one factor. There's no reason to believe that lower prices is "fully explained" by any one factor alone.
Well it's a fact they increased number of people employed in America. But there were also huge layoffs after the merger with Compaq to get rid of duplicate functions. As for outsourcing, the issue is not whether HP outsourced. It's whether it affected the prices of its printers in a significant way. Besides, I don't have to disprove squat. The burden of proof is on you when you are making a positive claim, not for me to prove a negative.You could disprove my theory about HP printers if you could show that HP reduced its outsourcing during the time period of 1990-2010. I.e., that they reduced the number of foreign workers doing the same work as American workers, or reduced the foreign jobs while increasing the American jobs. I.e., if you could prove Sen. Barbara Boxer was lying when she accused Fiorina of outsourcing jobs during her term as CEO of HP.
And by analogy, isn't it possible that the effect of outsourcing to consumer prices is also "too small to be able to measure"? You can make a theoretical claim that outsourcing reduces prices because otherwise companies wouldn't do it. But if the price increase is insignificantly small, it means that other effects can dominate both the decision making process, as well as overall impact to society in terms of side effects of increased unemployment for example.Example one: you brought up Samoa in another thread as an example where minimum wage caused measurable unemployment. Yet in other studies minimum wage increase does not cuase measurable unemployment.
But those "other studies" do not prove that there is no increase in unemployment. Only that the increased unemployment cannot be measured.
In Samoa the evidence is clear that there were higher unemployment levels as a result, because the impact was so great. Whereas in all the cases you're referring to the impact on the workforce is too small to be able to measure the impact on the unemployment level. Which doesn't mean there was no impact, but only that the impact was probably small. But, as in Samoa, the net impact overall is probably negative or an overall net harm to the economy.
You keep repeating that as a article of faith. But I say, to hell with the consumer. You getting $5 off your HP printer if it means laying off 30,000 people is not worth it.Example two: Outsourcing as brain drain. When you move a factory to China for cheap labor, it means that eventually the Chinese will pick up how to make your products at least as well as you do . . .
Even so, consumers are made better off. Whatever benefits consumers is what matters. The whole function of business is to serve consumers.
We can trust companies to try to make profit. But we can't trust that companies making profit is always the best for society, the company, or even best for consumers. That's why there are laws and regulations, but they can never be perfect. In my example, which you cut in a dozen pieces to try to obfuscate the point, I showed that sometimes a short term profit motive may cause long term loss of competitiveness, for example.. . . and thus you are less competitive than you would have been otherwise.
We can trust companies to do whatever makes them more competitive and not less competitive. They know how much outsourcing is good for the company and how much is too much. The profit motive is all that is necessary to drive them to make the right decisions about this.
Most of the complaining about outsourcing does not come from a concern about the long-term health of the companies or their competitiveness, but rather from an obsession on the workers who get laid off and a fear that these will rise up in anger and go on a rampage.
Clearly, the two are not the same. Because a machine does not replace a person, it adds to it. If the person previously employed can find other employment, even if less paid, the total productivity of the economy increases. And if he doesn't find a job and just stays unemployed, the total productivity stays the same and we have one more person with 40 more hours of free time.Bollocks. Nobody here is advocating that inane analogy except you. And I addressed the fallacy in this post already: Outsourcing is not equivalent to replacing workers with machines. It's equivalant to just paying workers less.
In terms of the impact on the economy the two are equivalent. There is no change in the economy from outsourcing that is not also the case with replacing the workers with machines. Workers lose their jobs, the company's costs are reduced, and consumers benefit from lower prices than there would have been without the cost savings
All cost savings are good, as long as the same quality and quantity of production is maintained. Or if the quality or quantity is increased without any increase in cost, or the cost per unit is reduced.
Where do you think worker B comes from? That's right... he is taken away from "welfare or whatever". So the total impact to global economy is still the same. You could consider of course local economy, but then that's just a transfer from local welfare payments and tax payer burden increasing, and the foreign equivalent decreasing. So the benefit to consumers would be coming from tax payers.Let's say worker A is paid $5 by business owner B who sells the product to consumer C for $6. B takes $1 profit for himself.
If B replaces A with a machine that costs $4 to rent and operate, he can lower his price to $5 and still make the same profit. A is fired and has to get a job elsewhere that pays less than $5 (because if he could get such a job before, he wouldn't have been working for B the first place). Or maybe he doesn't get a job and just enjoys some extra free time. In either case, the benefit to the economy is twofold: the consumer gets its product cheaper, and the total productivity is increased.
But A is pissed off because he now has to go on welfare or whatever, the same as if he had been replaced by a worker who is paid less.
According to that logic, slavery was better for the economy than non-slavery.However if B simply reduces A's salary to $4 without using a machine, the consumer gets the product $1 cheaper but this isn't inherently better for the economy.
Of course it's better for the economy. The function of the business is to serve the consumers, and a lower price for consumers is always better for the economy. As long as the worker continues to do the job at the lower wage it's better for the economy. The only downside would be if the worker quits and cannot be replaced so that needed work fails to get done.
Then why doesn't he?Total productivity stays the same, A does not get any more free time, and he is just pissed off for losing 20% of his salary. This is nothing more than transfer of money from the worker to the consumer.
An uncompetitive worker SHOULD get a reduction.
My example did not change the scenario, it showed that wage reduction and outsourcing are equivalent in terms of economic effect (globally anyway), wheras automation and outsourcing are not. Clearly consumer is better off in both cases, but in case of outsourcing it's a zero-sum game, whereas adding machines to do the work increases productivity and is a net gain.Your example here changes the scenario from outsourcing to wage-reduction. You're not comparing outsourcing to the replacing of the worker by a machine. So there's no argument here to show that outsourcing does any more harm than replacing the worker with a machine. In both cases the worker is replaced by something that does the work cheaper and is pissed off. But in both cases the consumers are better off.
So {wage earners} and {consumers} are disjoint? Is there nobody who is both a wage earner and a consumer?Except, of course, if consumers all get their money from picking money trees, which is what certain people seem to believe.
I.e., the wage-earners = the consumers, which is not true.
Wage-earners are not the consumers any more than right-handers are the consumers. Just because a certain class of humans are the majority of the population does not mean that that class is identical to the consumers.
A number of reasons. At any given time, most people can't be replaced by a machine. There are only a few jobs that are at the cutting edge of automation's capabilities. But most people could be replaced by foreigners. Seeing a stranger replaced by a machine makes us think "Sucks to be him"; seeing him replaced by a different stranger makes us think "That could be me."Two reasons.
(1) A voter is more afraid of losing his job than he is of having to pay a higher price for some good or service. The utility of money and the disutility of risk are nonlinear, so the fact that the overall practice of outsourcing has a positive expected value to him in dollar terms doesn't necessarily mean it isn't negative in utility terms.
But then why don't these same voters want to crack down on companies that replace workers with machines/robots/computers? Why aren't they afraid of losing their job when it's a machine that replaces them, just as they are if it's cheap foreign labor that will replace them?
Well, it's good to know the real answer even if it isn't the answer you were hoping for. If you get the answer the voter would have given it will be a reality-avoiding rationalization, so what use is it to you? Besides, if you know the real reason there's at least some prospect of making the unknown impulses known to the voter, and then he might decide he doesn't much like them. It seems to me if you can draw 5%ers attention to the existence of the 95% and to what effects votes in America have on them, some fraction of the 5%ers might rethink the thought processes that led them to imagine that inequality is a sin which there's a moral imperative to remedy by redistribution from the 0.1% to the 5%.(2) An American voter is almost certainly a member of the 5%; if he's educated then he's probably a member of the 1%. His monkeysphere consists of others like himself: other 1%ers and 5%ers. Outsourcing is the practice of 0.1%ers in America trading directly with the 95% who are in foreign countries but are competitors of 5%ers in America, thereby cutting the 5% out of the deal. To outlaw outsourcing is to force the 0.1% to trade with the 5% instead of trading with the 95%, thereby transferring a great deal of wealth from the 0.1% and from the 95% into the pockets of the 5%, and especially into the pockets of the 1%. Of course they choose to do this. This is not based on hatred or bigotry against the 95%; the hatred and bigotry is reserved for the 0.1%. The interests of the 95% are neglected simply because there are too many of them and they are too far away to be part of the 5%'s monkeysphere.
This of course is not what the voter would say in answer to the question. This is a kind of psycho-analysis of the voters to explain what drives them, and is not the explanation the voters themselves would give.
Perhaps the voters are incapable of ever explaining why they vote this way or that, and instead are driven by some kind of impulse they could never understand. Perhaps there is really never any "reason" for voters to vote one way or another. They just react like Pavlovian dogs that salivate when the bell rings.
This kind of answer to the question -- why does someone choose A rather than B? -- seems to undermine ever asking any question about decision-making, or any questioning of any choice or judgment anyone ever makes. Because the answer is always that the choice springs from impulses unknown to the one being asked, and so no one is ever capable of answering why they make any choice or judgment about anything.
Only to some of them. A lot of what we do here is just wanking.Do these same monkeys prompt us to go on the Internet and post our opinions on message boards? Is the monkeysphere the real answer to every issue posted here?
Marx? Absolutely. Plato and Descartes, I don't know, maybe 50%?Is it the real answer to all the questions posed in Plato and Descartes and Marx and so on?
Just one monkey, David Wong. The publishers amplify his voice because he's clever and wildly entertaining, so he brings them lots of web traffic. If you're asking why he's broadcasting his theory, I don't know, maybe wanking? That's undoubtedly why he wrote his novel, John Dies At The End. Highly recommended!What monkeys were driving the publishers of the above website to come up with this theory?