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Thread ID: 126529 2012-09-03 00:19:00 Outsourcing ! Unbelievable! Digby (677) PC World Chat
Post ID Timestamp Content User
1298493 2012-09-03 04:31:00 LOW PAYING jobs?
I worked in a foundry as a teenager, got paid $70 a week in the hand.
It was more than my father drew from his panel-beating business weekly.
A LOT of money in 1976.
Thousands of these sort of jobs now gone..back then unemployment measured in the hundreds nationally.
You global fans are deluded.
KarameaDave (15222)
1298494 2012-09-03 04:41:00 Anyone remember our 18% inflation rate?
That was in the late eighties under Roger Douglas who reckoned it wouldn't go over 10% and I think it hit 20%.
I often wonder what inflation etc. would be like if we didn't have residual reserve banking.
mikebartnz (21)
1298495 2012-09-03 04:50:00 Well done.
There are two factors which you don't take into account when looking at the picture of NZ as a whole and they are

Outsourcing will generally render some unemployed which becomes a cost the tax payers have to shoulder. So while the goods may be cheaper the cost to a degree are just transferred.

It puts a greater burden on our overseas exchange which can mean we end up with a greater debt burden.

You just need to look at the USA to see what has happened there.
Outsourcing will reduce employment in the short term, but in the long term this will mostly, if not absolutely, be reversed due to businesses that produce goods we have a comparative advantage in starting up. Also, the benefit that most people get from buying cheaper goods will outweigh the extra cost that is caused by the small rise in the long-term unemployment rate.

Can't really comment on any burden it will place on our overseas exchange, I'll do some research and then comment.

The one thing I would say would be to look at Australia, which IMHO did the right thing when it came to opening up trade. Instead of just making it a one way thing, they bargained with other countries to reach agreements where both countries opened up trade, thus getting around a possible problem in which they, but not other countries opened up trade. This would have caused problems, as Australian unemployment would have risen due to cheaper goods from overseas. And, if the other countries hadn't also opened up tradeand reduced restrictions, Australia couldn't have reduced it by exporting goods they had a comparative advantage in.
Nick G (16709)
1298496 2012-09-03 05:21:00 Yes NZ made a big mistake when we reduced most of our tariffs in one go with out negotiations a deal with other countries.

We are starting to make up for it now with FTA's with China, India and TPP etc.

But assembling making things such as cars and tv's was hopeless.
There was no choice in the shops in those days either.
Digby (677)
1298497 2012-09-03 05:51:00 Yes NZ made a big mistake when we reduced most of our tariffs in one go with out negotiations a deal with other countries.

We are starting to make up for it now with FTA's with China, India and TPP etc.

But assembling making things such as cars and tv's was hopeless.
There was no choice in the shops in those days either.
What I don't like about the TPPA is the way the negotiations are going on in secret and with the little that has slipped out I can only see the large multi-nationals doing well out of it and the way Pharmac operates will be drastically changed.
mikebartnz (21)
1298498 2012-09-03 05:53:00 The one thing I would say would be to look at Australia, which IMHO did the right thing when it came to opening up trade. Instead of just making it a one way thing, they bargained with other countries to reach agreements where both countries opened up trade, thus getting around a possible problem in which they, but not other countries opened up trade. This would have caused problems, as Australian unemployment would have risen due to cheaper goods from overseas. And, if the other countries hadn't also opened up tradeand reduced restrictions, Australia couldn't have reduced it by exporting goods they had a comparative advantage in.
Things would be vastly different in Aussie if they didn't have their mining.
mikebartnz (21)
1298499 2012-09-03 05:56:00 Yes Aussie is over pricing themselves.
Car plants are cutting back
Steel mills are closing
Quantas is outsourciing maintanance
Retail is in trouble.
Call centres are moving to Asia and New Zealand

You cant pay checkout girls $18.00 and expect to sell stuff to Asia !
Digby (677)
1298500 2012-09-03 06:02:00 Hi guys

We all know about outsourcing.
Getting projects done overseas by low cost countries.

SEO, Programming, tooling, production etc

But yesterday I got a nice email from a Chinese printing company offering to do brochures and stationary for me.

They are either getting desperate over there, or maybe its a sign of things to come ?hope you deleted the email. The NZ printing trade is doing hard times at the moment, although the company I work for is doing good.
plod (107)
1298501 2012-09-03 06:15:00 Things would be vastly different in Aussie if they didn't have their mining.
Absolutely. I was merely saying that their attitude to opening up trade in two way agreements made sense to me.
Nick G (16709)
1298502 2012-09-03 06:30:00 hope you deleted the email. The NZ printing trade is doing hard times at the moment, although the company I work for is doing good.

Yes I did.
But what amazed me was that they have the need to do this.
And that they can afford to roll though the intent and find companies to email.

They were offering quite sizable discounts.
Some companies will take it up.

The world is getting smaller.

This is why I keep saying we must keep our wages where they are and let Asia catch us up.
Digby (677)
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