Probably the most misunderstood business practice is the outsourcing of jobs. Some say job outsourcing is an evil practice done only by the most evil of corporations with sole motive being greed and the destruction of the working class. However, as you will see by the time you get to the end of this article, outsourcing is a great way to create high paying jobs! Outsourcing Jobs- by Edward J Lathrop Running a business requires making a profit. If a business does not make a profit, it will go under. When this happens, all the people working for this business lose their jobs. So, even though the motive is profit, an evil motive in some people’s minds, the end result is; profitable businesses employ people. When a business can cut the costs of anything it needs to either purchase or produce, or it can cut the cost of any service it needs performed, this business should certainly go ahead and do so. The reason for this is simple; if costs are cut, the business will more likely show profits and these profits can be used to expand the business. To not expand when expansion is possible is foolhardy. It would be the same as throwing money away. Ironically, this cast aside money could land in the hands of people in other countries. However, when an opportunity to expand is seized upon, more local people will be needed to be hired in order to perform the additional tasks the business needs performed. One way a business can cut costs is by buying machinery that will perform menial tasks for a fraction of the price it would cost to hire a person to do the same tasks. There are some economically misinformed people who believe replacing a person with a machine is cruel. When these same folks think of how many people have been replaced by computers and how many jobs were lost when heavy machinery, such as bulldozers and backhoes were put into service, they might conclude there is very little work left for anyone. However, the opposite is true. With their ability to do many things more cost effectively than humans can, computers and heavy machinery have created jobs for millions of people because of the vast sums of working capital they have preserved for all types of businesses. The same is true of outsourcing jobs. Outsourcing too, saves working capital for businesses and allows them to be more competitive by making their end product less expensive, thus giving them a bigger market share. When a business gains a bigger share of the market it will need to expand in order to accommodate the larger customer base it will now be serving. On the other hand, a fledgling business will need to lay people off. Successful businesses create jobs virtually out of thin air simply because keeping ahead of the competition requires innovation. With innovation new skills are needed to break new ground. This is what progress is all about. If not for innovation there would be a substantial need for blacksmiths, ice delivery men and candlestick makers. However, it is because businesses and corporations developed new products that filled human wants and needs, jobs for computer engineers, computer technicians, and network supervisors were spawned. Likewise, highly skilled automobile mechanics, refrigeration technicians, air-conditioning technicians, electricians and thousands of other jobs were created to support the development and maintenance of products once never dreamed of. It is important to note, the products all these jobs support are innovations that have made live easier for all of us. The point to all this is: jobs are not lost when businesspersons make the wise decision to get things done as inexpensively as possible. Quite to the contrary, being frugal creates not only jobs but wealth. Creating wealth does wondrous things for the GDP and the unemployment rate. However, it looks like America’s current leaders have chosen to attack wealth for the sake of their political ambitions and at the peril of the nation’s common good.
Posted on: Sun, 09 Mar 2014 01:53:19 +0000
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