Within the next decade, an economic tsunami is heading our way that

[KlatooBNikto]

will reduce incomes of middle class Americans across the board.The outsourcing ripple will expand and engulf whole segments of our professional classes. I see that pathology labs are outsourcing their work to India, so are accounting firms and legal firms. Many people in Europe and Japan are now flying to India to get very sophisticated medical procedures done there.Because we are kept in the dark about these developments by our socalled Press,it is going to take us by surprise when it does take on massive proportions.

It wouldn't matter at that point if you are a Republican or a Democrat.

[The Doctor.]

1. It'll be quite a ride... but a weak dollar will help reduce

outsourcing.

I'm more worried about energy costs.

[KlatooBNikto]

2. I am not so sure about a weak dollar really helping outsourcing.

The Chinese Yuan and the Indian Rupee are pegged to the Dollar.Any change in the value of the dollar creates a similar change in those currencies.

[The Doctor.]

15. Don't know if you'll get this...

But that won't be the case for long if the dollar loses reserve currency status in those countries.

That's why we're invading the Middle East - so they can't trade oil in Euros.

[Mika]

3. Same thing with dentistry

Many small dental labs are going under because of cheap foreign outsourced prosthetics.

Lab fee for a medium/high quality crown made in the US - $150-$200

Lab fee for a medium quality crown made in China - $20-$40


The largest growth in the US dental laboratory industry is foreign outsourcing centers/"labs".


Most all of the US dental products manufacturers (raw materials and equipment) are gone. Either swallowed up by large European dental industry or failed due to labor cost factors.


It is having a horrible impact on another wonderful US manufacturing sector, filled with dedicated, hardworking and creative artists. :(

[aneerkoinos]

4. Three words

Free socialist healthcare.

[wtmusic]

5. Eh

There is already a backlash against outsourcing customer service. The vast majority of people with middle incomes won't be able to afford to fly to India, and won't trust a doctor they've never heard of that's 12,000 miles away.

Outsourcing will continue to grow but in sectors which are less "trust-dependent".

[KlatooBNikto]

8. I have heard that an open heart surgery in India costs about $1500,

compared with almost $40-50 K here.Insurance companies will be more than willing to fly you to and from India for that kind of savings.When anything new like this comes up, you can bet it is the dollar savings that will matter and nothing else.If a critical mass is reached, even the "trust" that you correctly point out will be generated by word of mouth and the herd will start stampeding.

[AmandaRuth]

6. inflation

i know nothing about economics, but i can just --feel-- the inflation coming on.

[lovuian]

7. Soon India and China's wages will come up and it won't be as cheap

Plus Alot of Americans out of work makes a Angry America and we kinda want that!!!

[KlatooBNikto]

9. Do you realize how far they have to go to even come close to our wages?

Currently wages in India for an average worker runs at about a $2 per day.In China is more like $3 per day.Make your own guess as to how long it is going to take.

[BillZBubb]

10. Dream on. China and India have people waiting in line for work.

There is NO labor wage pressure there. Nor will their be, even for trained specialists. US manufacturing and many services will continue to wither away.

A lot of Americans WILL get angry, but at the wrong thing. The Repugs will channel that anger against the evil foreigners, not the American businesses and Repug policies which are really responsible. The sheeple as usual will follow the jingoistic bullshit. It won't help the Democrats at all.

The original post was right on the money. There is a foul wind blowing our way.

[Strelnikov_]

11. Deficit Spending And Inflated Real Estate Have Broken The First Waves

My feeling is that the seawall will begin to breach in the next couple of years.

Until recently I thought that the off shoring process has been gradually increasing since passage of NAFTA. However, I now understand that the vast majority of off shoring has occurred in the last 4 years. Therefore, I am afraid that no one fully understands the effect it will have on the economy.

The 'experts' keep noting that unemployment and GDP growth are still acceptable, and therefore off shoring cannot be having much impact on the economic prospects of most people. In reality, I think we are living an unsustainable economy at the current time that is masking the effects of off shoring. Specifically, G sector deficit spending, extraction of equity from inflated real estate, and drawing down of retirement/ savings accounts are keeping the economy limping along.

The more I read, the more of a sense I get that the middle class of this country are whistling past the graveyard.

[BillZBubb]

12. Very good points.

I'd add it's not just public sector deficit spending either. Consumer debt is shattering all time records. National saving is at an historic low. The Repugs have scuttled the dollar. Greenspin held interest rates at dangerous low levels. Real wages are falling.

This economy is running on artificial stimulants. Every indicator is reading "DANGER!". This will not come to a happy end.

[KlatooBNikto]

14. When I first posted this, I used the word tsunami to describe a

monster wave of outsourcing that cuts across to include even high end professions like medicine, law and accounting.After reading your post and that of loindelrio,I think that term could very well describe the complete elimination of the purchasing power of our middle class.

[welshTerrier2]

13. the U.S. economic model is unsustainable

"In reality, I think we are living an unsustainable economy at the current time"

i couldn't agree more: http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=2488185