Group warns of outsourcing backlash

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The hidden backlash / blackmail

I'm not American, but I do have a lot of family that are. They enjoy a relatively comfortable standard of living that allows them to be consumers, buying a variety of goods and services, not only domesticaly but also from around the world. It is the jobs that they hold that makes this possible.

Threatening to take away their jobs unless they are willing to work for less has only two possible outcomes:

1. They go along with the blackmail and accept lower wages. This lowers their disposable income and they consume less. Fewer goods and services are sold and the providers of these goods and services take a hit against profits.

2. They refuse to go along with the blackmail and they become unemployed with no disposable income. No goods and services are sold and the providers of these goods and services take a hit against profits.

Either way, the result is that the consumer takes a hit and the shareholder takes a hit.

The only ones comming out on top are the executives who delivered a short-lived growth in profits and earned a sizable bonus for doing it. Who cares after the bubble bursts? They've got their bonuses salted away in some off-shore tax haven and they can live like kings for the rest of their natural lives. It matters not to them the misery that they have strewn.

And what about those offshore workers? When the bubble bursts, whose going to call them when hardly anybody can afford to buy those consumer goods anymore? Are their jobs any more secure? What will the excutives do when those offshore workers realize that thet are being had? That their talents are worth a whole lot more than what their bosses are paying them?

The backlash won't come from boycotts and government intervention. It will come from a whole lot of goods and service sitting around not being sold.

Hold on to your cash folks. I smell a big sale comming with all sorts of stuff being offered for a song. Maybe even being cheap enough that if it breaks, you won't have to call offshore for service. You can just toss it and get another one.

Posted by: wallyweb@...   Posted on: 01/08/04 You are currently: a Guest | Members login | Terms of Use

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