Job outsourcing and the rise of crime.

And of course, all the private companies hired by government contract to build and run prisons spend a lot of money lobbying for longer sentences…

Yeah? Show me.

Uh-oh!

abcnews.go.com/m/story?id=206698 … -last-year

Yes that’s right, we’re in the midst of a 2-decade-long decrease in the violet crime rate, which may or may not becoming to an end.

Assuming it is coming to an end, which it may or may not be, are you still trying to attribute it to outsourcing? Can I attribute the 2-decade long decline to outsourcing?

But anyway, congratulations on researching your premise a week and a half after making it.

A report based on household interviews isn’t worth an awful lot, epistemologically speaking. Didn’t the US have a flurry of mass shooting last year (still waiting to see that gun ban the NRA etc. have insisted was part of Obama’s totalitarian plan)? That hasn’t been repeated this year. Things spike up and down on an annual basis, on that sort of scale, but the long term trend is that Western societies are less violent than they were decades ago. It seems the peak in crime was actually the point at which living standards in real terms were at their peak.

Ty,

You are looking things from only one side, a very subjective and narrow view.
Though, you cannot blame the rise of crimes only on outsourcing as there are many other factors also.
But, even if i give you that, it would not solve the problem. Let me tell you why. You are missing a very simple but most basic point.

Barring some here and there restrictions, we are almost in the state of free economy. So, every protectionist action from any country would attract counter action from other countries.

US may stop outsourcing within a moment and i also agree with you that it would increase employment to some extent. But, you must realize that, in return, many other countries, may increase import duty or even stop US goods and services from entering their markets. Would that help the employment in US in the long run? Can US can consume the whole what it use to produce?

Allow me be more specific by putting some examples of how this system works on ground.

Let us take the case of Indian outsourcing to US. Perhaps you are not aware of the fact that 9 out of ten world biggest management consultancy companies are in US; like Accenture, McKinsey, Boston consulting group, Bain &company, Deloitte consulting, AT Kearney, Booz Allen Hamilton, LEK consulting and The monitor group. This is to say it is almost the monopoly of US companies in this sector around the globe.

These US companies also got huge contracts from Indian private and public companies. And, they offload or outsource some of their work to Indian BPO companies. This helps US companies in two ways. Firstly, they need to keep less permanent employees and secondly, this also saves a lot of money for them because of the currency rate.

But, if US would stop these US companies to outsource to Indian companies, the Indian Government would have no option but to forbid US companies entering in India.

The same would be the case of China, Taiwan, Philippines, Indonesia, Malaysia and so on. The list is endless.

So, if you restrict them, they would restrict you. And, as the result, perhaps 8 of these 9 US companies would not survive if other countries would not allow them to enter. Because, US market alone cannot provide them enough business.

Ty, let me also show you how disastrous its implications may be on the US economy.

Do you know what is biggest industry and exports of US? It is nothing but arms. US’s share in the arms industry worldwide is more than 40%, though it includes both domestic and exports sales. In exports, US also tops the list. Its exports are 8760 million USD in 1912. Russia is second with 8003 million while Germany is at very distant third with 1193 million.

And, do you know who is the biggest importer of the arms in the world? Surprisingly, it is India with the imports of 3337 million. It imports mainly both from US and Russia. And, the amount of outsourcing from US to India is merely peanuts in comparison of the arms exports to India.

Ty, this is where the real game is played.

And, US government understands this reality very well. That is why they would never stop outsourcing. But, would keep pretending as they are concerned deeply about it. It is nothing but public posturing.

with love,
sanjay