Economic Chain

There has been lot of talks going on about outsourcing,exports from china,India and other developing countries and how USA is losing jobs & wealth.All said and done if you look at it closely,this is nothing but a new form of colonalization.i would say a healthy one too.No, the villains are not he developing countries which are taking away the wealth or jobs, Its countries like USA & europe which engage in these practices that are benefitting, uplifting people in other countries. By outsourcing the daily chores to other countries, they are making themseleves free for more innovation, and enjoying their time doing what they want, at the same time making money, while their work would be done on a different part of the globe. In other words the devloping countries would be doing the work for the Americans,much like the slaves but a happy one.

Surprised,how this happens? let see an example.The textile industries. When the textile industry moves job to china or india, they lay off their american workers.let say an american worker made $1000 per month.now by outsourcing, the cost would com down to say $300 per worker. A saving of $700 per worker per month. Now this directly improves their profitability and therfore the stocks. Now if the same industry gives the stocks of its company to this layed off worker, the situation, indirectly for him is not a layoff but a pay cut of $300. Ideally the more profit the compant makes the more money the investors make, and the worker being a investor makes money.So he gets a $700 paycheck for not working at all.cool isnt it. He has all the time in the world now to do other things or create new business.Now this helps people in other part of the world to rise from poverty through distribution of wealth.

With increase in wealth, these countries are able to exploit the natural resources in their part of the world, which translates to money.Now they too are creating wealth. When the same textile industries sell their product in those countries, they take some of these welth back to their country and also increase the welth of the layed off worker.

In short through outsoiurcing countries like USA are actually uncovering the wealth hidden in other part of the world, and thus everyone is happy.

In another 20 years, this is whats going to happen, USA would be the Invention capital of the world, China the manufacturing Capital & india would be the Servicing Capital of the World.

As USA comes up with new Innovation and revelutionize existing Manufacturing & servicing sectors, it stays ahead economically, and the other two countries would catch up as USA transfers these technology to them, and this would happen in cycles,Pushing Mankind to New Frontiers.