As well as being the title, plot, and punchline of a hit TV show (that turned out to be a one season wonder), “outsourced” also happens to be a word that conjures up mixed emotions amongst people in the western world. “Outsourced” (the show) followed a plot which all people in the 21st century are now familiar with: a company wishes to increase profitability by a slight margin, so they proceed to fire all their employees and send their call center, as well as its young manager, offshore to India. Cultures collide and hilarity ensues.
On the one hand, outsourcing is a means to great business benefits; foremost of which are cost advantages. But on the other hand, outsourcing is a near death sentence for many employees trying to grasp on to whatever piece of real-estate is left in an ever shrinking and ever decreasing job market. Let us explore together what outsourcing is exactly, and what it means for we job seekers who are all living the ‘underemployed life.’
The history and the theory
It may come as a surprise that although outsourcing wasn’t formally identified as a business strategy until 1989, it is not a new phenomenon. Early examples of outsourcing include the use of freelance mercenaries (a practice that is as old as war itself), and the shipping and trade services offered by the Venetians to foreign nations during the height of their empire. So although it has existed in various forms, and to meet various needs throughout history, outsourcing today exists by the grace of two economic theories: “free market” and “free trade.”
Free market is the theory and practice that the economic landscape should operate without any government intervention. It is the belief that the value of goods and services should be wholly dictated by the open market and the consumer, via the natural laws of supply and demand.
Free trade is an international economic policy where governments do not place restrictions, taxes, or tariffs on the import of foreign goods and labour. The result being a far larger market place in which to trade and do business, a much larger pool of human capital, and a greater potential for economic growth.
“I have seen with my own eyes, and heard with my own ears, the brainstorming and planning stages behind outsourcing. It was driven by nothing but greed.”
Sounds pretty good, doesn’t it?
Don’t be so hasty now… remember, there is no honour amongst thieves. Leaders from the oil, diamond, wheat, and gold industries have been known to artificially manipulate the supply of their goods by declaring less than what was actually produced. What was the result of deliberately restricting supply? The price of these goods increase. And with increased prices comes increased Profits, profits, PROFITS! Furthermore, business without any government restriction is business that is free to do as it pleases. Even build a private army and conquer a nation, as was the historical case with the East India Trading Company.
So what options do we have outside of free market and free trade, which are increasingly becoming the unquestioned norms of our modern world?
The antithesis (and anti-Christ) of free market and free trade are “protectionism” and “isolationism” (they already sound evil, don’t they?). Protectionism is the economic policy of restricting trade with foreign nations via the use of tariffs or taxes, quotas, and other such means. That’s so local goods and services will be favoured by consumers, because imported goods will be more expensive and in much shorter supply. Isolationism is the foreign policy where a nation chooses to serve their own interests and keep foreign countries, foreign trade, and foreign conflicts at a comfortable distance.
Who is to blame?
Now, let us ask… Is this really so bad? Is it really so wrong to “keep it in the family?” If you haven’t figured it out by now, let me take you to school. The only people who benefit from outsourcing and free trade deals are the very same people who advocate for them. Big business, big banks, and big government (who are owned by big business and banks). Forgive me for the rant I’m about to go on, but I have very strong opinions about this topic.
Greedy, slimy BANKERS are at the heart of our unfair modern socio-economic system. They have convinced the citizens of the western world that nationalism equals Hitler. That you are a racist if you love your own country and kinsmen. They make you out to be worse than Hitler if you try to help your fellow countrymen first. These filthy international bankers have regrettably succeeded in convincing us that the greatest good… the ONLY good for governments and citizens is to serve and grow “the economy.” That the only path to redemption for we horrible, racist Hitlers is to sacrifice ourselves and our country on the altar of free trade, before our most unholy god “the Almighty Dollar”.
Jesus Christ was right when he said “you cannot serve God and Mammon (money),” and it is painfully clear to me that bankers have sold their souls and sold out their fellow countrymen in the name of personal financial gains. Gains that always remain strictly personal.
The American economy has made amazing growth during the last 50 years. However, the lower and lower-middle classes have received no benefit from all this growth. All the free trade deals and offshore manufacturing has served only the interests (and the bank accounts) of those at the top.
By the way, when I say “those at the top,” I really mean right at the very top. Back in 2008, Barack Obama’s first administration was mostly made up of former Citigroup executives. Citigroup is the reckless and corrupt bank personally responsible for sucking tens of billions of dollars of tax payer’s money in “too-big to fail” bailouts due to its irresponsible and unethical trading practices. So while Citigroup and their ilk were being given free money and free reign over the United States government, “We the People” were left to bear the burden that greedy, international bankers refused to take any responsibility for.
So, despite opposition from high profile members of his own party, Citigroup’s puppet-President Obama personally blocked legislation that would place caps on executives salaries at the firms that received bailouts. Obama is also overseeing the controversial Trans-Pacific-Partnership (TPP), which if successful will be the worlds largest free-trade agreement since the world trade organization came into effect back in 1995. With Citigroup’s/Obama’s TPP will come the usual horsemen of the free-trade apocalypse:
-manufacturing and service-sector jobs moving offshore (outsourcing).
-cheap imported products will become the favoured choice amongst consumers, because more expensive local made products cannot compete.
-the reduction in bargaining leverage for domestic American labour.
-a number of foreign companies will have the unfair advantage of not needing to adhere to domestic American laws.
This is personal
So whilst most people are understandably angry at losing their jobs to the Chinese and Indians, do understand that they are not to blame… hell, to this very day 90% of the Chinese population still live below the poverty line. I sincerely wish them success that they may be able to improve their own situation, because it sounds a lot worse than ours. The problem is not the people of China or India who are able and willing to do our jobs for much less pay. No, the problem lies with those who take the work away from us and send it overseas in the first place. Reserve your righteous anger for them.
I’ve worked in a couple of factories (well, the offices connected to these factories at least), and although my job was always safe from being outsourced, I have seen with my own eyes, and heard with my own ears, the brainstorming and planning stages behind outsourcing. It was driven by nothing but greed.
I understand that in the world of business it is important to turn a profit. You must turn a profit. Even not for profit businesses turn a profit. But how much money do you need? How much money is enough? My boss had a number of people working in the factory and was pocketing $700,000 per year clear (I had access to his account per my job duties). But obviously this wasn’t enough for him. He was toying with the idea of outsourcing the manufacturing side of his business to China. He would rather close the factory, terminate the employees, and pocket the savings. I’m sorry guys, but this makes me feel absolutely sick.
The wrong kinds of goals
Goals are definitely relative. We don’t all have the same goals in this life. Some people want to be the best parent possible. Some want to be great athletes. Some want to produce art. There’s great merit in having dreams, and I applaud people who are goal driven and filled with ambition. It is truly a noble quality. Although people’s goals may be relative, I do not believe morals are. I know it is the fashionable and politically correct thing to say that nobody’s beliefs are wrong, but I completely disagree.
I think sometimes your beliefs can be absolutely and objectively wrong. I don’t see anything wrong with working hard and becoming rich. There is great merit in hard work. But when I see a single man with a successful business actually considering firing employees with families to feed, so he may make more money (money that he clearly does not need), then I see no merit, no morals, and nothing noble in this person… all I see is filth.
Harrison Stamoudis is a freelance writer from Melbourne, Australia. After a lifetime of being praised for his intellect and being told “you can do anything you want”, he was doomed to grow up without guidance and direction (it’s difficult to pick a door when they are all open for you). Aimlessly wandered from one job to the next, he struggled to pick a path and stick to it. Harrison often had to work multiple jobs just to make ends meet and the work history list on his resume is a little longer than he cares to mention. Harrison is currently in the process of completing higher education (for a third time) so that he may make his next major career change, this time civil engineering.