10 April 2008

The Problem With Offshoring

Corporations can move capital relatively freely but the labor pool has no such luxury. Thus corporations can outsource offshore with impugnity, relocating wages, but the labor being replaced does not have the choice to freely relocate. E.g. a software developer in the US might very much like to relocate to India to retain a job, with commensurate reductions in both salary and cost of living to maintain a fairly consistent quality of life, but that's not an option. There's an imbalance of power, with the corporations having more options than the workforce.

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