[citation][nom]omnimodis78[/nom]our model of macroeconomics needs some (re)adjustments... This nonsense about cheap labour going to other nations simply doesn't make any sense anymore, it's getting out of control. At what point does it go so far out of balance where it doesn't even make any sense at all. I mean, if you take away 2,400 jobs, that's 2,400 less people buying things to make your economy viable and competitive. I know that's a simplified example, but I just don't get it. I was laid off a while back and as a result I spend a lot less than I did before, so how much money is really being saved if now people are also buying less products? Sheesh...[/citation]
well this is how it works.... 2400 loose jobs(2400X5=12,000 loose income), unemployment grows...supply of labor far exceeds demand, price (=wages) or labor goes down, it goes so down that it goes below india's and then companies cut jobs in India (create major economic havoc there) and start hiring in the US.... and the cycle continues....
In the end, companies, CEOs, Share holders go from rich to super rich and employees in US and India(and the world) suffer and pick up the pieces.