kilo39 said:
No. They write a different piece of code or they do something else (that has greater value.) They don't find the money to pay the coders they use the freed resources to generate other wealth and use some of the profit of this to pay the foreign coders. You are not 'finding spare money' you are generating money in other ways which (hopefully) yields higher profits.
People aren't trained overnight. You can't change from being a coder to an engineer in a week, for instance. My point is that coding in the US can become uneconomical if they have to compete directly with Indians, so the job market for coders in the US vanishes. What are those coders who don't have jobs going to do? Probably find a job at burger king if they're not lucky enough to have other training to fall back on.
Where there was once a profitable industry, there is now an empty hole, and the GDP for the country shrank. Capitalism hates recessions, just look how morbidly afraid your average stock investor is of recessions.
There are of course, some examples where one industry floundered and another grew in its place. However, with each industry or service that is exported, it becomes harder and harder to find other things to do to fill the gap. I'm not claiming that a single industry is enough to wreck an economy, but when a whole range of industries go out of business it's a different story.
We all pay the cost everyday (how many of us haven't computers made redundant) but we also experience the benefit everyday (or we would in a free market.) Global unemployment figures (in first world economies) don't support your view: things change, people adjust (if given the opportunity to do so.) Witness telephone operators; where are these people today? Your life is the nett result of streamlining: cell phones, a computer on every desk, the mp3 player in your pocket. None of these would exist if your model applied (because there would be no innovation, no reason to innovate.)
Strawman. Innovation and job piracy are two totally different things. Having one technology replace another is progress. exporting an existing industry to another market is a totally different matter.
A failed economy has no use for any workforce, cheap or otherwise. A failed economy equals no jobs so how is this relevant to a cheap workforce? If there are no jobs any 'unemployed cheap workforce' is useless. Nevermind the fact that ALL jobs require skills. If government is failing on all/any level this will lead to no jobs - nothing else.
An example of this would be African country A. Let's say country A has been involved in recent wars which has destroyed most of the infrastructure.
Now along comes your wealthy multinational who buys some of the land for a fraction of what it would otherwise be worth. There is no local production and many people are starving because they cannot afford to buy food. Let's say this multination decides to grow coffee on this land. Although there is no local economy to speak of, there's a demand for coffee in other markets. The multinational corp uses this to its advantage. It offers the local workers jobs, paying them barely more than what they need to spend on food, and the workers don't say no because the alternative is to go hungry.
No employment problem is 'manageable.' There are only solutions. Any and all small or otherwise failures in government leads to unemployment, nothing more, nothing less. And this is exactly our problem: the failure to deliver through corrupt contracts, poor local fiscal control, failure of local government all leads to unemployment (never mind any issues of cheap imports.) It is exactly these cheap imports that point to failure (even in European markets.) Failure on all levels (in basic education, crime, etc) are exactly the things shown up by and threatened by cheap imports and deregulated markets. Good grief some of us could actually be expected to work for a living.
I was merely speaking in terms of having a sustainable economy regarding unemployment being 'manageable'.
I'm not sure what to make of the rest. You know why we get so much cheap stuff from China? Because there's no minimum wage. In many cases you have 2 workers working at the same spot 24 hours a day. When one works, the other sleeps under the machine, when the shifts changes he wakes the other guy up and they reverse roles. Workers such as this can be paid next to nothing - it's not like they need to spend it on anything such as dental care, afterall.
The west with its minimum wages and relatively ethical employment laws could never in a million years hope to compete with such a production line. Do you really want what I've described above to be the yardstick by which we define a superior means of doing things?
Something to think about next time you see the "Made in China" sticker.
Ultimately the country owns the land (no matter the paperwork.) If the country cannot get the land to work this is the failure of government - no matter who owns the land. Witness Zim.
True. However, look what the results were when it happened in Zim. Taking land by force isn't a good way to improve your national economy.