Comment Re:The Economics of Empire (Score 1) 1119
While you make some interesting points, there is a fundamental flaw in your assertions. Actually I can see 2 flaws.
It has been my experience in the industry that no matter how many times I have explained that to do engineering projects on time and within budget a firm spec is needed up front. So far in 25 years in the industry, I have had that once and then only because I was the expert in the domain and wrote the specs on my time after work. When you outsource engineering work you absolutely need firm specs up front and then you pay dearly for changes during development. The costs of engineering in the US would be reduced significantly by following the same principles and using local resources. In addition, the quality could be managed much more effectively in that scenario.
The second problem with what you are saying is in market. If you force your local labor force to jobs that keep them at a poverty level, you have no customers. We have a tremendous trade deficit now and the effect of shipping work off-shore will be interesting to see.
One last point, how are the shareholders of the companies going to react when their jobs are the ones that are lost due to cheaper labor elsewhere. That could be another interesting reaction to watch.
It has been my experience in the industry that no matter how many times I have explained that to do engineering projects on time and within budget a firm spec is needed up front. So far in 25 years in the industry, I have had that once and then only because I was the expert in the domain and wrote the specs on my time after work. When you outsource engineering work you absolutely need firm specs up front and then you pay dearly for changes during development. The costs of engineering in the US would be reduced significantly by following the same principles and using local resources. In addition, the quality could be managed much more effectively in that scenario.
The second problem with what you are saying is in market. If you force your local labor force to jobs that keep them at a poverty level, you have no customers. We have a tremendous trade deficit now and the effect of shipping work off-shore will be interesting to see.
One last point, how are the shareholders of the companies going to react when their jobs are the ones that are lost due to cheaper labor elsewhere. That could be another interesting reaction to watch.
