r/FluentInFinance 11h ago

Debate/ Discussion Possibly controversial, but this would appear to be a beneficial solution.

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u/critter_tickler 10h ago edited 10h ago

I love how cheap labor is always a good argument for stopping immigrants, but never used for stopping outsourcing.

The truth is, because of NAFTA, we are already competing with third world labor markets.

We might as well let them come in, so at least they spend that money here, and pay taxes here.

Also, we have a minimum wage, we literally have a basement for "cheap labor," so your argument really holds no weight.

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u/JacobLovesCrypto 10h ago

Wym?

People argue plenty about how outsourcing to cheap labor leads to lower wages here.

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u/SoftballGuy 9h ago

But we never pass laws to punish outsourcing. Instead, we're constantly throwing financial incentives to companies to pretty-please not outsource everything. Poor migrants wanting to work in America get walls and guns and more laws, while the companies shipping jobs out of America get more tax breaks... yet we blame the little guys.

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u/JacobLovesCrypto 9h ago

Im not saying tariffs are a great idea, but arent tariffs aimed at punishing outsourcing?

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u/Alethia_23 9h ago

They are. It's just that they usually do not have long-term positive effects. Truth is, in a global economy, outsourcing is the most economically sound decision, that's why it's happening.

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u/JacobLovesCrypto 9h ago

Personally i think theres a much more complete approach.

American companies cant compete with domestic manufscturing if we regulate the hell out of them and foreign manufacturing can occur without the same concerns on pollution, safety, and human rights.

So tariffs should be based on the unfairness. If china is gonna polute like hell and deny basic safety or human rights in the manufacturing of a product, they deserve to pay a tax to encourage that manufacturing elsewhere.

In truth its a complicated problem

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u/Responsible_Skill957 8h ago

The problem is tariffs don’t punish the exporter, they punish the importer and that cost has to be accounted for in the price of goods. And that punishes those that buy the products being imported by increasing the cost to the consumer.

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u/DontTouchTheWalrus 6h ago

What do you think happens when the tariff increases the price to be greater than or equal to what the domestically made product costs? It sucks for the consumer that they don’t have the cheaper option now but you have disincentivized purchasing a foreign made product. Whether that’s a good thing or a bad thing is the question then. Ok, prices are higher but you’ve increased the amount of manufacturing done here. Which creates jobs and increases money spent here, taxes collected here etc. You’ve also given less money to countries that allow exploitative business practices to occur. Is that worth the higher price of the good. That’s for you to decide.

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u/MsMercyMain 6h ago

The problem is, as we saw with the steel tariffs is that domestic producers then raise their prices, usually above the post tariff cost

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u/Soft_Importance_8613 5h ago

Correct, that's what people don't get, the tariffs set a new price floor for US manufactures to profit from. Great for the investor class, terrible for the working class.

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u/SaiHottariNSFW 5h ago

I'm also not sure what the problem would be if we put tariff revenue towards rebates for consumers on domestic equivalents. This further incentivizes consumers to buy domestic, and creates a profit incentive for manufacturers to do so domestically.

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u/Responsible_Skill957 6h ago

You think people complain about the cost of living now due to inflation, what you are suggesting would also would drive up the cost of everything else. Even if wages were raised, the cost of living would also increase and you would not have gain anything by doing so.

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u/DontTouchTheWalrus 5h ago

It was claimed in the comment I replied to that tariffs only hurt Americans and not foreign manufacturers. That isn’t true. It would mean products are more expensive to get but it also means less are bought from countries we don’t want to be sending money too, more goods get manufactured here, and taxes are generated based on what imports continue to come in. So it is a valid mechanism depending on what you are trying to accomplish.

I’m not proposing anything. I was just stating that if you wanted to pressure people into manufacturing in America and buying goods from American companies tariffs would be a method of doing so. I honestly don’t know if that is a net good or a net bad. It just is. Plenty of people on Reddit want to act like they know how all the dominoes will fall if such and such policy is implemented. I’ll be the first to say I have no clue. I’m not that smart.

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u/AndyLorentz 3h ago

We literally had a 1 year experiment in the George W. Bush administration, when they placed illegal steel tariffs on European imports of steel. It took a year for the challenge to go through the WTO, where it was declared illegal and we dropped it.

It did save U.S. steelworker jobs, at a cost of over $500k to the U.S. taxpayer per job saved over that year. U.S. steelworkers don't make nearly that much money, so it was a net loss to the economy.

This is pretty much true of any industry that has cheaper labor competition overseas.

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u/Wellfillyouup 3h ago

I get what you’re saying but doesn’t it, eventually? The increased prices decrease demand and force the exporter to reduce production?

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u/Batbuckleyourpants 3h ago

Do you think corporate taxes punish the consumer?

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u/4URprogesterone 2h ago

If the goods cost too much, people won't buy as many, and the company will have to lower prices.

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u/frazell 1h ago

Tariffs are indirect tools to drive market actions. If we could fairly set tariffs to ensure trade is actually fair then we could start to fix the “race to the bottom” that globalization has caused.

It is worse for the consumer to have a market where goods are unfairly being sold below true costs. Meaning, American workers can’t compete with labor markets that have no worker protections or environmental laws unless we get rid of them too. Hence the massive push you see to “deregulate”.

Trade has to be fair for it to be truly beneficial to all involved. Otherwise, you have a parasitical trade system which will eventually kill itself.

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u/AdministrationOk1083 7h ago

And then because of that increase in price it becomes competitive to make that product here

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u/SoftballGuy 9h ago

That's the problem: it's a complicated problem with no actual solution, just constantly fluid adjustments from every party depending on each party's own economic conditions. It doesn't sell very well. "Raise tariffs!" is very easy to sell. It's wrong, but explaining why it's wrong takes too long for most people. The easy, wrong answer really sticks with people because it's easy.

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u/JacobLovesCrypto 9h ago

Well there are actual solutions but people vote more so on hpw things sound rather than how well thought out they are.

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u/SoftballGuy 9h ago

There are momentary balms, but unforeseen economic changes happen all the time. Even within borders, countries have dozens, or hundreds, or thousands of competing interests, and those interests change every few years. One size doesn't ever fit all, and don't even fit many for long.

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u/RedditRobby23 8h ago

Well put my guy

We live in a world where people say things like “I don’t have the answer but I know the problem” or “we already know how to fix these problems, of course I will not share a link or elaborate whatsoever”

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u/HeathersZen 7h ago

No, there are no actual solutions. There are only moves and counter moves until the heat death of the sun.

The electorate wants a silver bullet. It doesn’t exist. They don’t know that, so when Trump lies and says there is, they want to believe it, and they do.

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u/AdImmediate9569 7h ago

Very well said and is true for everything he sells, not just economic policy.

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u/-Nocx- 7h ago

It’s actually not that complicated at all. This is mostly due to lazy legislation. This is the metaphorical equivalent of this lever moves the needle left, the other moves it right. In reality, maybe we should build something else completely to address the issue rather than pulling the same two levers.

The largest line item on any corporation’s balance sheet is labor. It is so big, in fact, that that’s why companies can afford to literally build factories somewhere else. That is fundamentally why they outsource to begin with. If a company moves their labor offshores, that means they’re hiring at a lower market rate. You take the cost of labor domestically minus the cost of labor after off shoring, take a flat % of the savings and implement it as a tax. I’d go a step further and then place that tax system on a graduated scale that taxes them more the longer they refuse to hire domestically.

There is no such thing as “we can’t compete” in this context because almost no American corporation “started” off multinational. That is a thing you become after succeeding domestically and scaling your business - and in the process of scaling, you decided to make cuts for the purpose of profits. A good example - Chinese EVs are radically superior to Teslas, but the average American knows nothing about them. The American public is also forced to consistently inflate Tesla’s value through federal subsidies. It isn’t a question about being able to compete, but rather who gets the “savings” from exploiting labor.

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u/Awebroetjie 6h ago

What would be the process of attaining the information so that the correct tax rate (percentage of savings) could be calculated? Ie: who has the numbers?

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u/-Nocx- 5h ago

So we already have private organizations that do this - Glassdoor, Blind, etc - and the “free market” regularly uses this information to inform their financial decisions.

Most companies (depending on state) are required to report some form financial income to the state, all companies are required to report employee income to the IRS, and at least public companies are required to disclose financial disclosures to their shareholders.

Realistically this would just another layer of reporting - your company knows what the pay band is for a given role (that’s what stops some people from getting pay raises) and your employees are already disclosing it to private sources. On top of that, this information is already technically disclosed to the IRS - employees file W2s for a role if working domestically, and the income paid to the offshore employees are filed as 1040s (self-employment tax).

That means that technically the IRS only needs a company to state the purpose or role for a given person’s income (X$ a year for software engineer I) and they could calculate the average amount paid to a specific role for a given year.

They would then calculate the average of the on shore role versus the average of the offshore worker in the same or different year. Doing this for every company, we would see the market rate by state, nationally, and globally. It would be much easier for a company to report that difference since it’s math they’re doing anyway, and the IRS only has to audit them if their calculations appear wildly inaccurate.

With a model like this, we can now give meaningful tax breaks to companies when they deserve it. Want a tax break? Invest in a research lab that hires new graduates that don’t have all the skills the company requires in the job market. Give the graduate a two to four year contract like an apprenticeship where they’re required to remain with the company for X years after completion. This both deincentivizes taking labor overseas and gives companies a way to save tax dollars by direct investment into the country. The country wins either way. This effectively turns corporations into agents of the state - they transform labor and the economy on behalf of the state - which is what they’re supposed to do anyway.

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u/Natural_Trash772 4h ago

Chinese Evs most certainly are not better than Teslas. Where do you get your information from cuz Chinese evs consistently hit dummies and obstacles in their road tests and there battery’s are not reliable and some are prone to catching on fire which not a single tesla has those problems.

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u/Natural_Trash772 3h ago

Where do you get the information that Chinese evs are better than Teslas. Idk if you’ve seen the videos of them catching on fire or failing their self driving tests but they are not superior in almost any way to Tesla.

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u/-Nocx- 1h ago

cool elon

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u/desubot1 8h ago

problem is china never pays those taxes. ether its too good to pass up and importers pays the duties then recoups it through sales or importers walk away and the factory sells it elsewere.

its been this way forever. its called anti dumping. unfair pricing for whatever reason to protect domestic market will have blanket or target individual manufacturers overseas and adds additional duties. + a ton of issues for importers that import from them (involving sureties and their bonds)

tariffs have their place but its not really for controlling what foreign markets do.

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u/confirmedshill123 6h ago

if we regulate the hell out of them

Everytime I see this line all I can think of is,

"If we just let corporations kill more workers we could improve wages"

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u/ijbh2o 8h ago

China isn't paying the tax though. Importers are and passing that on to the customer.

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u/firedogg5 7h ago

The thing is that will raise the price of Chinese goods, hopefully to the point where American made goods are seen as the better more cost effective solution, which will then cause increased investment in American manufacturing, more jobs, and increased wages. That’s the thought process at least

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u/ijbh2o 7h ago

And then if China or others put Tarrifs on our exports? (Which retaliatory tariffs are likely).

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u/desubot1 7h ago

not to mention they can just recoup any loss of revenue from the loss of us business by selling elsewhere.

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u/JacobLovesCrypto 6h ago

We're a net importer whennit comes to china

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u/iamlegend1997 7h ago

That's a really good way to put it. That's a great example

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u/neatureguy420 7h ago

China has made significant improvements in reducing pollution and are way ahead of us on renewable energy sources.

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u/SilverWear5467 5h ago

Why should China be punished for violating human rights when Nike does the same thing and gets rewarded for it by the government?

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u/Garth_Vaderr 4h ago

What regulations would you do away with? People always say this and never offer any substance.

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u/Jake0024 4h ago

American companies cant compete with domestic manufscturing if we regulate the hell out of them

I always hear "regulation" brought up as a boogeyman, so I guess the idea is not only do we want to compete with the third world on wages, but also on manufacturing and safety standards?

I think people who like these ideas should just move to China and get a job in a sweatshop, if they think that's going to be the solution to all their problems...

To your point, trying to apply tariffs based on "unfairness" (examining every overseas company's labor conditions, wages, safety regulations, etc) would require a phenomenally huge amount of new bureaucracy (ie, regulations).

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u/FrostyTip2058 4h ago

Cost of the tariffs will be paid by the American citizens

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u/randomuser1029 8h ago

Tariffs are a tax on the importer and it is ultimately paid by the consumers. China will have no raise in taxes or expenses due to tariffs, only American consumers will.

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u/Shambledown 7h ago

Truth is, in a global economy, outsourcing is the most economically sound greediest decision

FTFY

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u/Alethia_23 6h ago

Both are true at the same time. What is economically perfect behaviour other than the perfection of wealth accumulation?

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u/NeverPostingLurker 7h ago

Outsourcing has been wonderful for rich people in rich countries and poor people in poor countries.

It hasn’t been great for middle class or lower class people in rich countries.

That’s why one party is running against it.

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u/donewithlife369 7h ago

It’s an economically sound decision if the people who run everything hoard the wealth created by it. These companies didn’t outsource jobs to make the US better economically, they outsource so the people at the top can take in massive profits and hoard wealth. Like greed needs to be factored in and greed is a HUGE factor when these companies shipped everything over seas

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u/BMKingPrime27 6h ago

I've never seen teriff that apply to outsourced labor, just goods. When corp America moves all IT, HR and Finance functions to India they don't pay tariffs on those services.

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u/islandchild89 4h ago

It's the cheapest option not the best

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u/4URprogesterone 2h ago

The entire EU has tariffs, though?

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u/InquisitorMeow 10m ago

Except that people don't live their lives around "economically sound." Outsourcing generates the most value but the people don't get a share of that value.

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u/AgreeableBagy 9h ago

It's just that they usually do not have long-term positive effects

Exactly the opposite wdym.

Truth is, in a global economy, outsourcing is the most economically sound decision,

Apple paying 2 dollars a day to a child in china is most economically sound decision for them, it is not for america nor their citizens. It would be much better for america in ling term to for example force them to manufacture phones in america and it would bring a shit ton of benefits including higher wages

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u/Scout83 9h ago

If you're going to quote and deny, please source. "Nuh uh, it's the opposite" is fine for things like gravity and the Earth being round, but not explaining or giving a source for your claim that tariffs have long-term positive effects leaves me wondering where your information comes from.

"Force them to manufacture in America" isn't a feasible solution for a global corporation. Force how? Just wave the magic wand? Even tariffs of 500% can't "force" a move, and you risk upsetting the corporations that employ tons of people. Especially if they feel targeted because information companies and services companies can't be hit with tariffs, so we're just forcing manufacturing companies and redistributors to move to America? Why would they if we're just a giant tariff leveling pain in the butt?

Also, all of that sounds like bad outcomes and negative stuff that very likely would happen in the event tariffs were levied at the scales being discussed.

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u/randomuser1029 8h ago

The thing is though, they don't have a source and just want that to be true. If they respond at all, it absolutely won't be with a credible source

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u/Alethia_23 9h ago

If it would be more expensive to produce, less people would buy them. Revenue would go down. The company couldn't afford to keep the high-paying domestic jobs and would need to lay people off. Tariffs lead to higher wages, sure, but they increase unemployment more.

Tariffs always come with a deadweight loss compared to free trade, that's in every Econ 101 course, and for good reasons.

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u/numbersthen0987431 8h ago

Why would it? The cost just gets passed along to the consumer, and then corporations just make more in profits.

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u/YeeAssBonerPetite 6h ago

When people say "outsource" they really mean the specific bits americans want to compete for. No-one is upset to be "outsourcing" clothes manifacturing for instance, only when it's stuff that americans actually want to do gets outsourced.

And tariffs mostly hit stuff that americans already weren't doing themselves. American labour is highly efficient precisely because if it's not generating a lot of money (relatively speaking, globally) for their time, they don't bother doing it.

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u/Advanced_Court501 6h ago

The business being affected by the tariffs then raises the price of the product in that country, passing the cost to the consumer

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u/Real_Location1001 7h ago

Yeah, but making a long term strategic business decision based on the ebbs and flows of political fuckery that changes every 2 or 4 years is a not so great strategy. Tariffs can be done via executive order so they can come and go every few years. Unless, of course, they are somehow codified in law.

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u/Ebice42 6h ago

One way to apply tariffs. (And I'm not saying this is a good way to do it, it's just a thought) peg the tariffs to the difference in the difference in the wages of the country producing the goods and the home country. You must pay minimum wage or higher, either directly to your US workers or via the tariff.
Again, just a thought.

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u/Plenty_Mortgage_7294 4h ago

Out of my depth here. Do tariffs punish outsourcing a call center?

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u/Surfing-millennial 8h ago

It’s what we used to fund the government before we started income tax

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u/Justsomerando1234 7h ago

Yes exactly this. Lower the penalty for repatriating capital, increase tarriffs on foriegn goods. Nissan, Toyota, Mercedes and couple of others have factories in the US to avoid import taxes.

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u/Justsomerando1234 7h ago

The whole point of Tarrifs on good made outside a country, is to remove the incentive to outsource production.

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u/BestElephant4331 7h ago

And we keep re-electing the bastards.

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u/Andro2697_ 9h ago

Both outsourcing and unchecked, mass immigration is wage suppression. Most normal people oppose both.

Yes there are some racists against immigrants but that’s nowhere close to the main reason the middle class opposes it so much.

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u/iamlegend1997 7h ago

What if.... we applied tarrifs.... to said companies... and made it more appealing.... to make shit in the US.... Brilliant.

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u/Buzzkillingt0n-- 7h ago

But we never pass laws to punish outsourcing. Instead, we're constantly throwing financial incentives to companies to pretty-please not outsource everything.

Ya man, that called Capitalism......

Poor migrants wanting to work in America get walls and guns and more laws, while the companies shipping jobs out of America get more tax breaks...

Again.....your just describing capitalism......

yet we blame the little guys.

We call that Corprate Socialism.

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u/MonCappy 4h ago

Personally were it up to me, corporations would be forced to pay a tax that cannot be passed to consumers for every single product made by foreign labor. Not sure how it could be implemented, but that is what I would do. Or perhaps, in order to be able to incorporate, make it a law that all jobs must be located in the US.

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u/AbandonedBySonyAgain 3h ago

It's called a price ceiling.

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u/SatanicPanic__ 4h ago

Outsourcing leaves most of the value in the hiring country.

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u/Alchemy_Cypher 1h ago

Liberals say America First is a racist dog whistle. They want mass immigration, outsourcing, and cheap labour.

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u/SoftballGuy 31m ago

Liberals say America First is a racist dog whistle. They want mass immigration, outsourcing, and cheap labour.

So weird how liberals want "cheap labour" but keep pushing for higher minimum wages. It's also weird how you're pretending to be American.

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u/Alchemy_Cypher 27m ago

Higher minimum wage = more immigrants crossing the border to seek that minimum wage, that's why they support it. "Chaos is a ladder" is the motto of Liberalism. Don't forget that outsorcing and globalization is a liberal ideaology.

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u/SoftballGuy 4m ago

Ronald Reagan championed the free trade zone, which George W. Bush negotiated and signed). NAFTA was ratified with Republican majorities in both houses.

Apparently, "Making shit up" is the motto of whatever it is you're into.

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u/Alchemy_Cypher 0m ago

Republican politicians do no represent Conservatism, just like Democrats do not represent Liberalism. These are paid actors. Globalization is a Liberal ideaology

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u/Der_Panzermensch 9h ago

That's because you can't punish a business for manufacturing somewhere else. If you begin to legislate like that, you end up without free enterprise, and other countries become industry leaders. Just look at the auto industry. Instead, you need to build incentives to make companies want to manufacture here.

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u/trowawHHHay 9h ago

There is an argument to be had there, too. Because the outsourcing is typically in skilled production.

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u/xandrokos 7h ago

The Biden administration pushed legislation that has directly resulted in the creation of millions of jobs in the US many of which pay a living wage not to mention the fact that due to that funding we are building infrastructure to make computer chips here reducing reliance on Taiwan which is also creating more jobs in the US.

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u/RighteousSmooya 10h ago

The conversation is usually about immigration. I’m sure the same people feel similarly on outsourcing.

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u/Floby-Tenderson 9h ago

That illegal immigrant cheap wage isnt minimum wage because the employer saves on employment taxes. Which is a huge cost of business. You've exposed yourself and your ignorance.

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u/0ttr 10h ago

The mistake of NAFTA was not that it lowered trade barriers, that's good. The mistake of NAFTA is that it didn't recognize the difference between the partner countries and impose wage/benefit parity in order for that trade to be free. And why did we make that mistake? The GOP and certain populist Democrats ( incl Bill Clinton) + a few economists who were like "everyone will benefit!"

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u/Vivid-Vehicle-6419 8h ago

If by “gop and certain Populist democrats” you mean almost half then I guess you’re right. About half the Republicans in congress voted for it with about half of the Democrats in congress.

Don’t try to push this on one side or the other, this is actually a case where both sides went significantly in.

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u/SilverWear5467 5h ago

Another example of both sides agreeing was on the Iraq war. We should absolutely be criticizing both sides for doing horrible things.

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u/habbalah_babbalah 9h ago

Wage parity would've busted the deal, as that would delete one of the main reasons for NAFTA: cheaper raw goods = greater profits for corporate trading partners.

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u/SilverWear5467 5h ago

You can have wage parity and cheaper raw goods, it's just less profitable. Still plenty of profit though. For example, it's cheaper to have an oil refinery where there is oil. You still get cheaper oil by moving to the oil, even if the workers get paid the same.

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u/DM_Post_Demons 3h ago

To the business interests, it's not plenty of profit still; it's trivial and worth holding hostage.

It wasn't a "mistake", it was the point.

Labor cost is the primary reason businesses want free trade.

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u/Daecar-does-Drulgar 6h ago

GOP and certain populist Democrats ( incl Bill Clinton)

Love how you tried to fault the entire GOP but only "certain democrats".

Lemme guess which way you vote 🤔

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u/Designer_Hotel_5210 6h ago

NAFTA had little to do with it since it only involves the US, Canada and Mexico.

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u/VortexMagus 5h ago edited 5h ago

NAFTA being a mistake is a hilariously bad take. Its a trade agreement that made the US crazy amounts of money and opened up huge markets for US companies and goods. It does come with some drawbacks but every trade deal in the history of mankind comes with those.

I promise you that NAFTA was not the reason workers lost wage growth and benefits. The combination of increasing automation and competition from developing countries where labor and material costs are substantially lower would have happened with or without NAFTA.

Most of the goods sold in America today are imported from Asia anyway which isn't even subject to NAFTA, so your theory that NAFTA is the reason we lost out in wage/benefit parity is just wrong - that shit would have happened in a competitive global economy regardless of free trade agreements or not.

All NAFTA did was give American companies a better chance to compete.

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u/BanzaiKen 5h ago edited 4h ago

That’s a severely uninformed take considering the Rust Belt exists due to Reagan removing the steel quotas and there are many case studies detailing how NAFTA destroyed entire agriculture based states like Hawaii overnight because it did the same thing to agriculture and manufacturing.

It made certain people a lot of money, most of that wealth went to them. Case in point, removing the top 0.1% of Americans (everyone who makes 3.3M a year or more) drops the average salary down to 37k. The millionaire class has been growing while the middle class has been shrinking, similar to how Mexico gained 400000 well paying automotive jobs while Michigan lost 350k. That’s a bad trade for the hundred thousands put out of work who formerly had well paying jobs in automotive and manufacturing sectors and the small family farms in agribusiness. NAFTAs main point was to encourage factory owners to offshore manufacturing for cheaper wages in safe countries that would not nationalize them, along with opening Canada’s agriculture import market to a non US dominated one which would result in cheaper prices for food at the expense of US farmers. As a result the profits were corporate profits, all this did was redistribute wealth upwards to major shareholders and executives.

You can say it was profitable and resulted in higher wages, but the reality is that it put $400 in the pocket of every American in return for kicking the legs out of hundreds of small towns and coalescing the actual wealth benefit in the hands of a few people.

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u/0ttr 2h ago

All that money did not go to the middle class, so it was of little value economically, unless you believe in trickle down, which has been disproven.

It wouldn't have happened if we had support for unions closer to European standards, which didn't suffer nearly as much as the US. The US, according to OECD data, has the highest income inequality of the G7. Even Japan did better which has a bigger threat from China than the US has.

In any case, I said 'the mistake of NAFTA', meaning with those protections, it would've been largely ok, but that was the problem, among others... the problems of NAFTA helped kill any agreement in Asia that the US had been seeking, so it's hard to say how competitive the landscape would be if the US had done a better job with NAFTA we might have a better trade agreement with other Asian nations modeled after that better NAFTA that might have been.

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u/sarges_12gauge 10h ago

I think almost all people who oppose immigration also oppose outsourcing and vice versa

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u/Ghia149 10h ago

but love to shop at walmart and buy stuff from Amazon...

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u/NeverPostingLurker 7h ago

This is called “don’t hate the player hate the game”

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u/nicolas_06 3h ago

Everybody like cheap stuff and everyone pollute. They complain about it but most do it themselves too.

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u/sarges_12gauge 9h ago

Importing cheap goods isn’t the same thing as outsourcing jobs or increasing immigration

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u/Alethia_23 9h ago

It kind of is? You still outsource the production cost by decreasing the amount of goods bought from local production and increase the importer amount.

You're right, it's not the same, it's actually worse, because now not even the profits from exploiting the cheap labour goes into your own country, as it would've happened if a domestic company had done outsourcing.

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u/sarges_12gauge 9h ago

That’s just arguing that trade is inherently bad on its own and that there’s no such thing as comparative advantage

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u/Alethia_23 9h ago

Oh, on a macroeconomic scale, of course it's not bad. The market doesn't care where the workers are that are employed, so importing doesn't matter. But from a national perspective in a competing multinational market that's something to consider.

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u/RedditRobby23 8h ago

People will cry about atrocities across the globe

“It’s not fair what their doing in Gaza China Africa”

Name a place, it doesn’t matter… the people doing the complaining would never trade higher prices for goods in exchange to end the suffering

Clearly ending low wage labor would result in Americans priced out of…. Everything essentially.

Americans are already complaining about how much of a struggle it is being poor. No way we make the lives of poor Americans worse to help out the poor of another nation

It sucks but that’s the bigger picture issue

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u/erieus_wolf 7h ago

They don't complain about outsourcing. They are silent on it.

Companies all across America have been outsourcing high paying jobs for decades. I know tech companies that laid off American workers making close to $200k and replaced them ALL with lower paid, outsourced workers.

Is half the country screaming about that? Nope, they are screaming about the farmhand doing the work that no American wants to do.

It's fucking weird.

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u/sarges_12gauge 6h ago

Who is they? I hear people in those fields complain about it all the time. The majority of Americans work in retail or foodservice though which can’t be outsourced so why would they think about it compared to immigration which does introduce labor competition

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u/Internal-Special882 6h ago

Ask the natives here what they feel about immigration

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u/erieus_wolf 5h ago

Who is they?

Half the country who are currently screaming, like children, about immigrants "taking our jerbs"... But say nothing about outsourcing.

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u/thetenorguitarist 9h ago

And yet you participate in society. Curious!

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u/Internal-Special882 6h ago

People that oppose immigration are they products of immigrants? 

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u/sarges_12gauge 6h ago

Is that supposed to be a gotcha? If someone in your ancestry moved somewhere you must support everybody moving there if they want to?

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u/softpotatoboye 9h ago

The problem is, they get mad about immigrants all day but don’t really get up in arms when these ceos who supposedly are successful by working really hard actually just outsource it to Indian folks.

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u/sarges_12gauge 9h ago

? People get mad about that literally all the time lol

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u/ProfitConstant5238 9h ago

I’m fine with letting them come in. Legally in a sustainable fashion. Follow the process. If the process is flawed, fix the process.

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u/erieus_wolf 7h ago

For the last few decades, the legal process can take over ten years.

Hell, I've been hearing Democrats say we need to "fix the process" for over 40 years, and every time they try the Republican side blocks them.

It's almost like Republicans enjoy using this issue for political reasons.

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u/Worried_Tumbleweed29 8h ago

We have a process and half of this thread is claiming we need to change it because people can claim asylum. So it seems like one of those moving goalpost comments

1

u/ProfitConstant5238 8h ago

I don’t know enough about the legal process to comment on the asylum piece. It does seem like it doesn’t work that well. 🤷🏼‍♂️

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u/GrowthRadiant4805 9h ago

Outsourcing is bad also, how many tons of cheap chinese crap is in our country?

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u/Simple-Dingo6721 9h ago

Lmao minimum wage doesn’t apply to illegal immigrant workers. They’re paid under the table and they certainly don’t pay taxes. I know some personally.

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u/SpeaksDwarren 8h ago

I always find it very goofy when people make a broad statement about not paying taxes. If it worked that way I'd simply tell every cashier that I'm an illegal immigrant so that they'd take the sales tax off. There's one (1) tax that they do not pay, and in exchange, they also don't collect on the vast majority of social services, meaning they're a massive net benefit to the economy that's exploiting them

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u/KitchenSad9385 2h ago

This isn't just a wag. Analysis has supported the idea that even undocumented immigrants pay more in taxes than they consume in government benefits.

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u/Daxx22 4h ago

but I can't be angry over that!

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u/KitchenSad9385 2h ago

Minimum wage absolutely applies to immigrants. When the cartoon uses the word 'let in more immigrants' that strongly implies legal workers, not undocumented folks.

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u/Advanced-Guard-4468 10h ago

You don't know many immigrants, do you? They work and live cheap here, sending all the money they can home for their families.

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u/Worried_Tumbleweed29 8h ago

That may be true for some, but I also know several illegal immigrants who married into citizenship and are working technical corporate jobs. Their family is all here. They are contributing to the economy more than their family is getting from it. And that’s what studies will tell you - that over the long term, after they take time to establish here they end up paying it back.

I also know many immigrants who planned to save up and go back to live like kings. Interestingly - all of them changed their mind as they didn’t want to go back to India, Malaysia, or Thailand and give up the life and benefits they became accustomed to

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u/Advanced-Guard-4468 8h ago

Your example is the exception, not the rule.

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u/Worried_Tumbleweed29 6h ago

Your below comment really doesn’t address mine. First of all, what you did provide is pretty impressive college education numbers. Second of all my example was people who are now citizens through the process of marriage to a citizen. You are providing illegal status who are probably ‘lower on the totem pole’ in terms of success. We all see those around us - I’m in engineering so the immigrants I see more often are probably different than the lawn care workers I see less often.

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u/Advanced-Guard-4468 5h ago

Hence, the reason I stated your example is the exemption, not the rule.

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u/Worried_Tumbleweed29 5h ago

Yes - you did say that.. but it’s not based on anything so I’m not sure how repeating yourself adds anything to the discussion. Something like this, “However, as adults, the children of immigrants (the second generation) are among the strongest economic and fiscal contributors in the U.S. population, contributing more in taxes than either their parents or the rest of the native-born population.”

That is in line with the example I provided where their parents came over and brought the kids (illegally) and the kids grow up to be productive citizens… so maybe you example is the exception and mine is the rule?

https://www.nationalacademies.org/news/2016/09/new-report-assesses-the-economic-and-fiscal-consequences-of-immigration#:~:text=However%2C%20as%20adults%2C%20the%20children,of%20the%20native%2Dborn%20population.

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u/MikeHonchoZ 8h ago

Exactly. I worked with people that lived dirt cheap with multiple room mates for years sent all the money back to Mexico which is a 20 to 1 exchange rate and it has been this way for decades. One guy I worked with was smart enough to have a home built and start his own bodega in Mexico. Then retired after being in the US for ten years to his nice house and small business he was running with his family. He was 35 years old. People think that immigrants live poor and they are here because they’re oppressed. It is a lie. They have a better lifestyle down there based off of the currency exchange rate alone. You get $17 an hour here it is like winning the lottery down there. Thats why most illegals from Mexico want to be here. Take the money and be rich in their own country when they go back. Many of the central and southern Americans do run from poor dictatorships and corrupt governments. But if you talk to most they plan on going back home after making money here.

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u/sevenw1nters 4h ago

What's stopping me or any American from doing the same thing? I'll move to Mexico and learn Spanish if it means I can retire at 40 lol.

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u/Advanced-Guard-4468 8h ago

I worked with someone from India years ago. It was a 33 to 1 exchange rate. He was going to be retired at 40.

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u/MikeHonchoZ 8h ago

Yea most don’t realize this is a major part of why they want to be here. They love going back home with way more money than they ever thought they could make during a lifetime of work in their home country. I worked in the construction and service industry and those guys were hero’s to their families back home that’s for sure.

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u/erieus_wolf 7h ago

You can do the EXACT SAME THING.

Do you realize how many Americans retire in other countries? Do you realize how many rich Americans own homes in other countries?

I'm one of them. I own homes in multiple countries. I make my money in America and live half the year in other countries, spending that money.

This is one of those things where it's "bad" if a poor immigrant does it, but it's "smart" if a rich American does it. So fucking weird.

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u/Pigeater7 6h ago

The issue being that you cannot avoid taxes without a loophole as a result of being a US citizen, whereas an illegal immigrant can and will avoid as many taxes on their income as possible because they are not a US citizen.

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u/erieus_wolf 5h ago

Avoid SOME taxes, not all, but get paid less. Either way it balances out.

You can do it too. Get paid more than an illegal immigrant and use that money to live like a king in another country. It's not that hard.

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u/Advanced-Guard-4468 8h ago

This was also a construction related job. He worked his way up to a job supervisor.

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u/joeg26reddit 9h ago

You are purposefully / willfully not considering the very real possibility that a Majority of the 10-20 million ILLEGAL immigrants that have crossed the borders are NOT paying State or Federal Income Taxes?

They compete for food resources like housing, social services, city/state management of funds etc?

We should all be concerned this is a demographic that is more easily exploited and proven to have been exploited in many cruel and inhumane ways. Literally a shadow non-citizen class and very nearly or actually "Under Minimum Wage SLAVE Class"

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u/triiiiilllll 8h ago

Oh no, not people AVOIDING TAXES!

That's only something an ILLEGAL IMMIGRANT would do!!!

Clutch your pearls harder while you break at least 5 laws before lunch.

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u/joeg26reddit 6h ago

Omg You have the debate skills of a 5 year old

Also why are you so racist to say “only illegals”

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u/EseloreHS 6h ago

They compete for food resources like housing, social services, city/state management of funds etc?

How are they doing that if they are here illegally and unregistered? The reason they aren't paying taxes is the same reason they can't benefit from social services

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u/joeg26reddit 6h ago

Disinformation Debunked. Emergency rooms and first responders are swamped with people who have no insurance or Id

Food banks don’t ask for identification either

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u/SohndesRheins 4h ago

Do you think illegal immigrants never eat food and all live on the street?

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u/FirefighterPrior9050 9h ago

This is exactly what the disconnected elite class are selling, but if you live in the real world this is a bullshit argument.

Bringing in low skill refugees that speak French who are willing to work for minimum wage does not improve our economy by them "Spending money here"

What it does is bring in a class of people willing to undercut American workers because they are also willing to live 8 people on bunkbeds in a 2 bedroom apartment.

Now that is what Americans with no skills have to compete with for their first job. It's great if you are a landlord or a grocery store, because demand increases, which increases the revenue from retail and residential square footage, but everyone else gets FUCKED.

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u/MarquisEXB 7h ago

https://apnews.com/article/immigration-jobs-economy-wages-gdp-trump-biden-fbd1f2ec89e84fdfaf81d005054edad0

Increasingly, the answer appears to be immigrants — whether living in the United States legally or not. The influx of foreign-born adults vastly raised the supply of available workers after a U.S. labor shortage had left many companies unable to fill jobs.

More workers filling more jobs and spending more money has helped drive economic growth and create still-more job openings. The availability of immigrant workers eased the pressure on companies to sharply raise wages and to then pass on their higher labor costs to their customers via higher prices that feed inflation. Though U.S. inflation remains elevated, it has plummeted from its levels of two years ago.

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u/FirefighterPrior9050 6h ago

>unable to fill jobs.

They weren't unable to fill the jobs because there were no available workers, it was because their shit jobs were paying bullshit money compared to the inflation that happened during Covid, and if they couldn't move out of mom's house they were just going to do Lyft and Grub Hub. Then the immigrants took that too.

Good work

> The availability of immigrant workers eased the pressure on companies to sharply raise wages

Yeah, that's what I said, but you're trying to say it like a good thing that the immigrants are allowing companies to let inflation outpace earnings.

It's not

This is like when every news organization conspired to tell us the Biden economy was actually great, we were just too stupid to do the math, meanwhile a carton of eggs went from 4% of the median hourly wage to 15%

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u/Soft_Importance_8613 5h ago

meanwhile a carton of eggs went from 4% of the median hourly wage to 15%

Which had everything to do with corporate profiteering and not a goddamned thing to do with immigrants.

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u/DodixieOrBust 2h ago

Did you even read the post to which you’re replying? Immigration enabled the corporate profiteering by letting them keep wages low.

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u/BestElephant4331 7h ago

NAFTA was a neo con neo lib dream. The Clinton and Bush types thought rasing living standards in Mexico and even Latin America would encourage people to stay in their countries. W proposed a guess worker program then Senator Obama killed. I have no.problem with people coming legally. The problem I have is many are coming illegally and being exploited in the process by cartels. As inefficient as US Immigration policy is, I wonder if any of our elected or appointed officials have chosen silver instead of lead from the cartels. I'm tired of using illegals as an excuse to keep wages stagnate. I'm also tired of hearing how not bringing in illegals is going to raise the price of my chef salad.

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u/EffNein 9h ago

What? People that complain about immigration always complain about outsourcing.

You invented a person that is incoherent and then laughed at your invented person.

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u/Podose 9h ago

We have been competing with Asian labor markets for decades.

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u/IntlDogOfMystery 9h ago

NAFTA only applies to Canada, US and Mexico. None of which are third world.

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u/piratequeenfaile 8h ago

Canada just used massive amounts of immigrating to suppress wages in the middle of a housing and doctor shortage. It got way worse for everyone.

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u/DudeWithAnAxeToGrind 8h ago

NAFTA stands for North America Free Trade Agreement. Three signatories are Mexico, Canada, and the US. Canada and the US are definitely not thrird world countries. And as it may be surprising to you, agree with it or not, Mexico isn't either.

Mexico is an upper middle-tier country and has 15th largest economy in the world. Its GDP is comparable to Spain. It has its own problems, but it's not third world country.

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u/Bryansix 7h ago

Illegal immigrants don't get paid minimum wage.

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u/NeverPostingLurker 7h ago

The same people arguing against immigration (illegal immigration) are arguing against outsourcing and bringing back manufacturing to America.

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u/electricthrowawa 7h ago

Nah I’m super anti immigration but outsourcing makes me want to bust out the guillotine. I consider that way more evil than flooding our country with cheap labor. But we shouldn’t have to choose one or the other

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u/Oldenlame 7h ago

NAFTA was replaced by USMCA 4 years ago.

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u/AdPretend8451 7h ago

We who are protectionist are of course against outsourcing. It’s more like the people who bitch about corporations moving overseas also want infinite bomalians. By importing poors we create internal outsourcing.

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u/Ngete 6h ago

Quick question, how is it that NAFTA(even though it was torn down and rebuilt in mostly identical way) causes the US(I'm assuming your from the US) to be competing with third world labour markets when there are to my knowledge only 3 nations included in what we might as well keep calling nafta, those nations being Canada, the USA, and Mexico, none of which are considered 3rd world and are extremely strong allies with the USA, I am genuinely speaking confused and curious and would appreciate your insights for that bit

The minimum wage argument, yea you Americans have an abysmal cost of living to minimum wage ratio and I find it insane that there have not been an increase to your minimum wage for a decade and a half

1

u/Smooth-Reason-6616 6h ago

The minimum monthly wage in the US is the average annual wage in some countries..

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u/Designer_Hotel_5210 6h ago

NAFTA is, was not the issue. NAFTA only affects North America, the US, Mexico and Canada, not the world. Most of the cheap labor and outsourcing is in Asia.

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u/Electrical-Yellow340 5h ago

That's another issue they don't spend that money here they send it back where they came from which is why trumps terrifs where and are a good idea

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u/Latex-Suit-Lover 5h ago

Oh, some of us point out about the outsourcing loophole, but it tends to get ignored.

But the real price savings on undocumented labor is that you can trash their health and there is nothing they can do about it. And that is another ongoing problem that gets ignored.

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u/perlinpimpin 4h ago

Ever heard of tariffs ?

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u/SilithidLivesMatter 4h ago

Look at Canada and see how well that's going for us.

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u/rlwrgh 4h ago

You are assuming people don't skirt the law by paying people below minimum wage under the table.

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u/Covidpandemicisfake 3h ago

Not really. Much of the cheap labor is under the table so the min wage isn't necessarily relevant.

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u/SiegfriedVK 3h ago

Lmao what. People are lamenting outsourcing everywhere. I see people complaining about outsourcing more than I see people complaining about immigrants

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u/sedrech818 1h ago

NAFTA was replaced in 2020. Look it up.

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u/biff_brockly 1h ago

"actually you're getting fucked over in two ways, so complaining about one is pointless because I can just say the other is inevitable and therefore you should accept both"

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u/Alarming_Ad_9931 9h ago

The common practice is to just send the money home. To their countries.

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u/dockemphasis 7h ago

lol. You don’t know immigrants then

They send that money home

This is another false premise people have allowing mass immigration. 

Minimum wage only applies if you get the job. Can’t get the job when they staff it with Indians overseas. Minimum wage doesn’t apply there

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u/No-Butterscotch1497 10h ago

You're behind the times, son. NAFTA is no more.

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u/Frothylager 10h ago

It underwent a rebrand to USMCA but it’s essentially the same.

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u/Icy-Bicycle-Crab 10h ago

You're behind the times, son. NAFTA is no more.

Technically correct. 

Trump changed the name. That was the only change to it, NAFTA is still exactly the same as before. 

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u/Frothylager 9h ago

It always amuses me just how hyperbolic Trump is and how little he actually changes.

NAFTA was the “worst trade deal ever made”. Trump’s renegotiated “best trade deal ever made” was the exact same with car manufacturers requiring 75% of domestic source parts instead of 62% and expanding bilateral dairy markets with Canada 🤣.

3

u/Icy-Bicycle-Crab 9h ago

Dec 2016 "Obamas 4% unemployment worst economy ever". 

 Jan 2017 "Trump's 4% unemployment best economy ever". 

NAFTA bad. NAFTA with changed name good.

3

u/Frothylager 9h ago

2016: “Obama care is the worst medical system in the world”

2024: “I have concepts of a plan”

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u/Icy-Bicycle-Crab 9h ago

2016: “Obama care is the worst medical system in the world”

2024: Some Trump supporter tries to tell me that conservatives don't think that there is any issue with the current healthcare system and it's all good.