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> the pay for "janitorial work" has simply decreased. Author's point is not about decrease in pay but about the social changes that came about as a result of p
by solatic 9y ago
> the pay for "janitorial work" has simply decreased.
Author's point is not about decrease in pay but about the social changes that came about as a result of prioritizing the outsourcing of non-core-competency work to contractors, which increased competition and had the effect of reducing effective pay.
In other words, income inequality has increased as contract work has increased, and the reason why is because a large part of social mobility is due to networking and connections, which are far stronger at companies which prefer in-sourcing compared to companies which prefer out-sourcing, since out-sourcing naturally creates an "us vs. them" dynamic at companies which is difficult to overcome.
The implied conclusion is, if market forces are biased towards out-sourcing, then the government should incentivize in-sourcing as a means of combatting inequality.
- peoplewindow 9y agoThat's the theory of the journalist, yes. The NYT does not actually show that though, they just state it/assume it. If you read through the comments, one of them points out a perhaps less popular explanation - Ms Ramos apparently does not speak English. Large quantities of low skill immigration will inevitably make life tougher for people like her. But that would not be an explanation that'd be acceptable to the Times.
- solatic 9y ago> That's the theory of the journalist, yes. The NYT does not actually show that though, they just state it/assume it. Well what do you expect? Journalists write news articles, not peer-reviewed studies that obey the scientific method. A lack of English skills would certainly contribute to social isolation within an American company, so if anything, it helps drive home the point that social isolation exacerbates income inequality. I don't think anybody is making the argument that Apple bears responsibility for giving Ms. Ramos English fluency, and it's part of the reason why there aren't easy solutions. But you can't even think about solving the problem until you can start to think about its root causes.