Originally Posted by deadstick
That's all fine if you are a stockowner, but not if you are part of the working class of America. Putting Americans out of a job because it benefits your bottom line will eventually erode your client base. Unemployed people don't fly. They stay at home worrying about their mortgage. Sure, the rich people will have more money to spend on goods, but those goods were outsourced, so the working man gains nothing from it. When people stop flying, those orders are going to slow down, Boeing will have fewer orders, stockholders sell, and the Keynesian circle starts to stall out (no pun intended).
You keep making it sound like the unemployment rate is out of control. This is simply not true. As I previously posted the unemplyment rate has consistantly averaged right around the ideal 5 percent.
Originally Posted by deadstick
Possibly, until they start to manufacture their own medium size aircraft. Let's also not forget that as a very nationalistic people, they would buy Chinese goods even if they cost more than American. Turning backs on a nation's own workforce is an American defect, not a common practice everywhere. China's own growth in GDP is also beginning to cause them problems, so it is likely that the trade deficit will never balance out. Seems that now that China is getting a taste of the good life with their enhanced GDP, they run the risk of losing their own export base. Their own investment in their manufactoring sectors is starting to increase their operating expenses. As a result, some US companies are moving operations out of China to another place that hasn't invested in R&D but has a good source of cheap labor. American companies just keep moving on to the next country to exploit. Soon, manufacturing towns in China will look like Detroit. I doubt that will ever cure the trade deficit.
Why is China buying tons of our air frames and not building their own now? Their need is there, they have the money, space, and technology; but still they continue to buy our frames with no end in sight.
The trade deficit and outsourcing are two completely different animals. Most economists don't even concern themselves with the trade defict as it really is not a big deal. Check out the website and get a clue:
http://www.ou.edu/class/econ3003/book/area1c35.html
Originally Posted by deadstick
I doubt you have ever been replaced in your career by outsourcing or an immigrant with an H1B Visa. I am amazed that you think an economy could continue to function without an employed middle-class. Forcing an entire class of people into unemployment by closing factories will stop the circle. I am curious to know how much you understand about Keynesian economics. The whole concept is what has kept this country from having another depression.
Where are you getting this from??? Outsourcing has been going on for decades and the unemployment numbers have spoke for themsleves. Ford closes down a bunch of plants in the states, Toyota, Nissan, and others built new plants in the states. People just move from one place to another. If a guy loses his job, he dosen't sit on his ass feeling sorry for himself and look sympathy, he goes and finds another job. Once again, middle class America is alive and well.
I don't know how to make it any more clear, outsourcing is not a bad thing. Ryane has provided you with 2 perfect examples. Your so tied up in your Keynesian economics (the circle is there but your choosing not to see it) and thinking the entire middle class of America is unemployed, you fail to see the big picture - outsourcing is not a bad thing.