Offshore Outsourcing Benefits America and Secures World Peace
Offshore outsourcing is an unavoidable reality, but is it really "bad"? No, it is good, for every country and all good people. The more unrestricted and encouraged it is, the more everyone benefits.
There are two aspects to this debate:
- Individual self-interest
- National interest, world allies and peace
Individual self-interest
Basically, services are no different than goods. After all, when Americans buy goods, do they check to see whether they were Made in USA or imported? Why should services be any different?
Less developed countries (LDCs) increase their imports from America when they have more spending power gained from exporting services to America. It's win-win. LDCs do not have the overall production capability of America, in either goods or services of a high tech or industrially intensive nature, so there are countless products and services which LDCs import from America. LDCs' imports are approximately proportional to their export incomes in foreign currencies.
Free trade always has winners and losers on a case by case basis. However, overall, it is win-win. The more free trade, the better our economy overall. Free trade is like free enterprise.
Offshore outsourcing affects only a small percentage of the American workforce, as most services cannot be outsourced.
However, political races are often won or lost by a few percentage points, so politicians often try to get their margin from special interest groups who wish to benefit at others expense. What is needed is recognition by a much larger percentage of consumers that they will benefit from lower cost of some services and also lower overall inflation due to offshore outsourcing.
Those who stand to lose their jobs or reduce their pay rate must either be willing to move up into management of offshore human resources or else retrain themselves to create more value.
America is a great country built on a strong work ethic, and if political power shifts to a spoiled generation trying to protect its special interests, then it will be the beginning of the downfall of an empire, as the rest of the world will go forward anyway with offshore outsourcing, and American companies will become less competitive due to various kinds of regulations, tax or otherwise.
Americans are lucky to have been born in a country where there are educational opportunities and a minimum wage, as well as a culture which promotes the potential of the innovative individual from any class to rise as high as they are willing. It would be sad if its democracy led to a protectionist quasi-socialist country based on special interest groups.
However, an attitude of free trade with offshore outsourcing is not just a matter of benefits to consumers and businesses.
National interest, world allies and peace
Look at how much America is spending every year on military operations, yet how limited we are in our power. We should have learned in Vietnam, and the rest of the world has grown up a lot in the past decades since the end of colonialism.
Peace at the grassroots is promoted by trade, business ties and dialogue. Sanctions can create the opposite effect.
We should be promoting offshore outsourcing to the grassroot populations of Iraq (especially), Iran, Palestine, China, North Korea, and other perceived adversaries.
While it is easy to regulate import and export of goods, it is difficult to do the same as regards services. Indeed, individuals can export services without needing any more capital than a computer and an internet link, unlike exporting goods. It empowers the people.
Economic interdependence promotes national government cooperation in finding solutions to conflicts.
Governments who cause problems as regards their population's ability to make a living will not be popular.
On the other hand, if American politicians and policies create barriers to offshore outsourcing, then we are telling the world that "the haves" don't want free and fair trade with the "have nots", and sympathies shift to the causes of the disadvantaged.
While terrorism can never be justified, a solution to terrorism is alleviating the poverty of vast areas, and giving them hope by education and eradication of ignorance. Promotion of dialogue between citizens of different countries -- into every community possible -- will bypass local propaganda and make the world a smaller and more personable place.
Offshore outsourcing has the power of money. It can support internet links. Worldwide internet also opens channels to potential informants as regards terrorism.
Countries who isolate their populations will only weaken themselves in the world and suffer a growing gap between rich and poor. These are the seeds of unrest, and the leaders must come to the realization that history will not judge them kindly, including their descendants. Powerful businesspeople will be the first to undermine self-destructive policies locally.
Wide ranging trade sanctions against rogue countries are counterproductive. Some people argue that we should restrict cash flow into those countries so that they can't buy weaponry. That is a one-dimensional, narrow minded argument. The benefits of trade far outweigh the longterm risks by any measure. On the other hand, if a nation and its people are isolated, then the longterm risks grow.
For decades, nongovernmental organizations (NGOs) in LDCs have been using the slogan "Trade, Not Aid". Foreign aid tends to benefit corrupt foreign governments as well as domestic US suppliers with corrupt ties to US government insiders. Trade truly benefits the people at the grassroots, when it is free trade.
Patriotism, stereotypes and pidgeonholing
On our website at OffshoreLabor.com , we have received some emails criticizing me for not being a more patriotic American, as well as some awfully bigoted remarks from what appears to be a disproportionately "vocal minority".
It is my experience in America that the vast majority of Americans have positive attitudes towards people of other nationalities and races, understanding that people are pretty much the same all over the world.
Governments are another matter, because they are often populated with a significant number of zealots exceptionally motivated to go into politics. Some are dictatorial with an egomaniac at the top.
Nonetheless, this is not reason to disdain the people of Iran, China, Palestine, or other places.
In my 10 years of continuously working, living, and travelling overseas, it is my experience that people around the world have a high esteem of American people in general, and hope for maximum democracy, free enterprise, and the basic morals of respecting human life and being tolerant of others.
It pains me to read the occasional email that I should give preferential treatment to Americans based on their nationality, or that I'm unpatriotic.
It also pains me to see the occasional "ugly American" overseas behaving arrogantly.
To this minority, I wish to point out that Americans don't have a monopoly on the principles of human rights, democracy, free enterprise (or free trade), or anything else.
I love America, but I also love a lot of other places and peoples, too. Every place has its good side and its bad side, including America. It is more important to be loyal to principles and certain values.
As regards calls for sympathy about Americans losing jobs, I am truly sympathetic. I don't like putting anyone out of a job. However, it should also be understood that for a given amount of pay, my business can support more families overseas than in America. The ones overseas often need it much more badly, and more commonly reinvest their income more carefully (especially in education).
If my business could be more successful by hiring Americans, and if I could get Americans to be more "productive" (value out divided by total cost per individual), then I would hire more Americans instead.
My company hires people who provide the most value per unit cost.
We give preferential treatment to individuals who care about the customer as well as our company whereby they are diligent in their work, pursue continuing education, have good moral values, and are mutually respectful of others, whether they are American or from a less developed country.
As long as applicants are mutually respectful and profitable, we don't discriminate according to religion, nationality, race, skin color, or anything else that shouldn't matter.
We don't hire people who are anti-American or conflict-driven in any realm.
We also don't argue with people who are anti-outsourcing, except in public in places such as here.
I hope that this article has been a significant contribution to discussions on offshore outsourcing.
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