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Are the elite wealthy hurting the US economy by purchasing stocks from outsourced companies.

 
 
Reply Sat 2 Oct, 2010 06:33 pm
I would like to get some peoples opinion on if they think a higher than should be expected dividend payouts are gradually occurring because of the availability of purchasing more and more stocks from companies that have out sourced overseas where the profits are usually way larger due to the company paying low wages.In other words is the mindset of the elite wealthy gradually changing due to the availability of such stocks which are performing quite well as everyone knows directly because of the low wages that are being paid in a lot of cases especially on companies that have outsourced to China.And if you agree wouldn't this also lead to the company possibly expanding and outsourcing even more jobs thus hurting the economy here in the United States even more.
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Type: Discussion • Score: 5 • Views: 2,809 • Replies: 11
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Foofie
 
  2  
Reply Sat 2 Oct, 2010 08:18 pm
@bigbusinesshawk,
bigbusinesshawk wrote:

I would like to get some peoples opinion on if they think a higher than should be expected dividend payouts are gradually occurring because of the availability of purchasing more and more stocks from companies that have out sourced overseas where the profits are usually way larger due to the company paying low wages.In other words is the mindset of the elite wealthy gradually changing due to the availability of such stocks which are performing quite well as everyone knows directly because of the low wages that are being paid in a lot of cases especially on companies that have outsourced to China.And if you agree wouldn't this also lead to the company possibly expanding and outsourcing even more jobs thus hurting the economy here in the United States even more.


Are you equating the economy of the U.S. "hurting" due to less jobs in the U.S.? If yes, then you should, I believe, accept the fact that the economy is not based on job availability for the masses.

The problem relating to jobs, in my opinion, is that decent paying jobs, for those with limited education, can very well be shrinking. However, not oursourcing work that other countries can do more cheaply would also hurt the economy, since our goods are then too expensive for the world market, and many goods then remain too expensive even for Americans.

One should not equate the U.S. economy with the ability of the average person to earn a living wage. The economy has to do with how much wealth is in the country, regardless of whether is is evenly spread amongst the masses, or held by one socioeconomic class. That is my opinion.

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Rhonda W
 
  1  
Reply Sun 3 Oct, 2010 10:50 am
@bigbusinesshawk,
At first glance, it would seem that buying stock in companies that outsource would be like building a house of cards, it boils down to money for the population of other countries. If businesses want to manufacture in other countries, then why don't they go live there and sell there. Oh, yeah, it's because there are no markets in the other countries. Instead of bringing in slaves, big business is going to other countries where 15 cents an hour is minimum wage and the people are glad to get that. Walmart keeps all their profit to themselves, they aren't like the Bill Gates of the world-giving money back to charity. I don't know where this is all going to end up, perhaps a civil war (like the one that ended slavery) between the haves and have nots.
BumbleBeeBoogie
 
  1  
Reply Sun 3 Oct, 2010 11:09 am
@bigbusinesshawk,
Perhaps this might answer your important question:

http://www.seattlepi.com/business/164018_outsource10.asp

BBB
bigbusinesshawk
 
  1  
Reply Mon 4 Oct, 2010 06:28 am
@BumbleBeeBoogie,
It did nothing to answer my question.The ramifications from both outsourcing and or investing in companies that do are so complex that the average person is clueless as to what is going on behind closed doors.Number one:Lets just say that everyone kid went to college and did in fact get a degree.You got it right---not enough jobs for them once they graduate.The manufacturing type jobs were what balanced out the economy and retail jobs kill the economy.
Foofie
 
  1  
Reply Tue 5 Oct, 2010 10:44 am
@bigbusinesshawk,
bigbusinesshawk wrote:

It did nothing to answer my question.The ramifications from both outsourcing and or investing in companies that do are so complex that the average person is clueless as to what is going on behind closed doors.Number one:Lets just say that everyone kid went to college and did in fact get a degree.You got it right---not enough jobs for them once they graduate.The manufacturing type jobs were what balanced out the economy and retail jobs kill the economy.


The future might look different, in that fewer people will have the luxury of living in the "rugged individualistic" manner. We would survive, even in an economy with many in the retail field, or service industries, with communal living. This is how many immigrant families live.
0 Replies
 
bigbusinesshawk
 
  1  
Reply Tue 5 Oct, 2010 03:59 pm
The elite wealthy wouldn't care if we all lived in communes and or started to live independently sort of like the Amish already do because they would just outsource the jobs lost to Countries like China where they would increase the exports from that location to other countries to make up their profit margins.Remember the Amish don't purchase gasoline for one thing.
0 Replies
 
bigbusinesshawk
 
  1  
Reply Tue 5 Oct, 2010 04:01 pm
@Rhonda W,
If everyone in the Country suddenly went to college and received a four year degree in 2114 only about 30% would find a job.This fact just blows the hell out of your theory my friend.
0 Replies
 
Green Witch
 
  1  
Reply Tue 5 Oct, 2010 04:16 pm
@bigbusinesshawk,
I'm curious. Exactly what companies are we talking about here? What manufacturer is doing so great that the rich are getting richer by buying more and more of their stock? I'm certainly not the of the "elite wealthy" class, but most of my stocks are in the crapper. My IRA is worth about 1/2 of what it was 10 years ago. So please help me answer your question by giving me a few examples.
bigbusinesshawk
 
  1  
Reply Wed 6 Oct, 2010 02:31 pm
@BumbleBeeBoogie,
I didn't have time to watch the link yet.But I will say that instead of describing my question as important I would say it is more like a reality.No matter what the returns would be I myself would not purchase any stocks ever from companies that have outsourced.And if you would then I have no respect for you or your greedy. way of thinking.
0 Replies
 
bigbusinesshawk
 
  1  
Reply Wed 6 Oct, 2010 02:38 pm
@Green Witch,
That is simply.Just seek out companies or suppliers that have long since closed down due to Wall-Marts-everyday low price war they more or less waged on our manufacturing here in the united States.The former Huffy manufacturing from Kansas is one example.But my real fear is that the stocks that I am talking about are purposely structured so that the average person can not tell that most of their stock might be from outsourced companies because a few might be labeled or titled by a company from the United States.In other words many of the stocks in question have bought up more than one company and are now many companies rolled into one,possibly owned by China.
0 Replies
 
Krumple
 
  1  
Reply Sat 29 Mar, 2014 07:32 am
@bigbusinesshawk,
"Are the elite wealthy hurting the US economy by purchasing stocks from outsourced companies."

The thing that hurts the US economy the most is heavy regulations. The more regulations you place on businesses the less likely a business is going to pop up. Not only that but those who manage to survive tend to become predatory towards competition and their own customers! Look at all the backlash from Walmart, people love to hate Walmart. When the company first started it had some of the lowest prices, now they don't even care about low prices because they have essentially snuffed out all the competition and just sell the same garbage for the usual prices. But I digress..

Many businesses in the US have moved out of country because operating within the US has become counter productive to making a profit. Which is the whole point in business. But I am not talking about greedy corporations. If you are forced to pay for benefits to your employees as well as make sure everyone is licensed and insured, your over head becomes WAY too much. But if you can move to a foreign country and cut your overhead in half or even more, then it becomes appealing and this is what has happened to almost every business in the US.

The backlash of companies moving to foreign countries is that they make those country wealthy. They employ the locals providing them jobs. The US loses out on jobs. Fewer jobs means less people buying stuff. Less people buying stuff inside the US means a slowing economy. So then the stupid politicians seeing tax revenue dropping off so they raise taxes on businesses. This causes more over head for these businesses so they either go bankrupt or they move out of the country. It is a snow ball effect CAUSED by the government.

To save this system we need to deregulate. (I know people hate that concept) and we need to get rid of the FED. The fed is part of the problem because they artificially lower interest rates and keep them low which causes people to go into debt. It doesn't allow for companies to save or invest which would lead to research and development. So companies struggle to innovate.

This whole economy is being strangled by the government and the political leaders.
0 Replies
 
 

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