Record Setting Corporate Profits

[DemocratSinceBirth]

I don't get it. I understand that by decreasing labor costs you can increase profits. However if you are decreasing your labor costs by outsourcing to other countries your jobs you are reducing the number of people who can purchase your products.

Can someone explain to me this paradox?

[Uben]

1. Sure. What makes you think.....

....they only sell in the U.S.? Cheaper costs mean more profits. They can sell their products any where in the world, so reducing the number of U.S. buyers doesn't necessarily transfer in to fewer buyers. See?

[DemocratSinceBirth]

4. But You Are Still Reducing Over All Demand

The cheap labor still can't afford your products and America is still a huge market.

[Uben]

5. No, making the product cheaper.....

....increases the number of buyers world wide because of price. All outsourcing does is hurt the U.S. because it takes money out of the pockets of Americans. The companies do not suffer or they would not do it. Outsourcing is anti-American greed and should be labeled as such.

[DemocratSinceBirth]

6. You Can't Make A Flat Screen TV Cheap Enough For Someone In Rural China To Buy One

Much less a car...

[RandomThoughts]

2. It is part of the break down when demand became lower then production.

Once that happened the machinery of capitalism fails miserably.

Production efficiencies changed all the equations, happened decades ago with automation and machinery. So profit motive does not work, so the answer the profit motive gravitates to is removing excessive workers from society, that is the war fix to issue. the dominoe effect with profit motive is workers get thrown away, then become a problem, then get killed or put in prisons, although the amount of people needed to be removed is huge, hence why some think tanks talk about 90% or more population reductions.

The other fix is regulating capitalism to make some of it go to less profitable things like education and health care for poor people, and even art and mandatory pay for things like vacations or lower work weeks but same earnings. Then that production is removed from demand/production equation, and capitalism can work again, but at less profit for the few, and a bigger middle class, like it did during era like the Renaissance after the plague.

If you let capitalism solve it, then the answer does not have a moral component, and it has to remove huge population numbers as it drives them into poverty, and they stop being consumers.

Although I already posted all this stuff years ago.

[Proud Liberal Dem]

3. Damn that Socialist Obama!

:sarcasm:

I don't know how teabaggers can keep a straight face when they say such patently ridiculous things. :eyes:

[rock]

7. Don't give management credit for smarts

They are inclined to make poor decisions with short-term goals (but long term costs)