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It's worse than gameable; it continuous to contribute to "discrimination" based on socioeconomic class. Your exact example: If you were born into a wealth area

It's worse than gameable; it continuous to contribute to "discrimination" based on socioeconomic class. Your exact example: If you were born into a wealth area, your family likely has extra space for you to live, and you will continue to be paid highly due to living in an "expensive" area. If you were unlucky enough to be born into a poor area in a poor part of the country, you may have to move home to support your family due to a pandemic. They likely don't have extra room for you, so you have to find and pay for your own place. On top of that, you get your salary cut 50% as an "adjustment". It is a side effect of a system where the already-well-off will be treated better.

deleted 6y ago
[deleted]
presentation 6y ago
Outsourcing generally has the same effect on a global scale - people in poor countries will get low salaries for doing the same work, which keeps those countries poorer than the rich ones.
- lotsofpulp 6y ago
  It's the opposite. Outsourcing gives an opportunity for people in poor countries to earn money, bringing their wealth up. Just look at Mexico and the US. In the US, auto manufacturing labor was paid $80k+. I don't know the exact numbers for Mexico, but it seems reasonable to assume people in Mexico typically work jobs that pay far less than $80k. Automakers go to Mexico and say we'll give you $40k to do the same work we are paying $80k for in the US. For people in Mexico, $40k is a much better option than anything else available, so the people in Mexico jump at the opportunity to earn $40k, and are wealthier because previously they were earning less than $40k (by definition, otherwise why would they jump at the opportunity to earn $40k). People in the US are now earning $0. Quality of life has increased for many, many millions around the world due to outsourcing, and one could make the claim quality of life (or at least security of income) has decreased for millions in the developed world. But this is arbitrage at work. Of course, labor arbitrage isn't the only type, there's also environmental arbitrage (which is bad for the world).

deleted 6y ago

[deleted]

presentation 6y ago

Outsourcing generally has the same effect on a global scale - people in poor countries will get low salaries for doing the same work, which keeps those countries poorer than the rich ones.

lotsofpulp 6y ago
It's the opposite. Outsourcing gives an opportunity for people in poor countries to earn money, bringing their wealth up. Just look at Mexico and the US. In the US, auto manufacturing labor was paid $80k+. I don't know the exact numbers for Mexico, but it seems reasonable to assume people in Mexico typically work jobs that pay far less than $80k. Automakers go to Mexico and say we'll give you $40k to do the same work we are paying $80k for in the US. For people in Mexico, $40k is a much better option than anything else available, so the people in Mexico jump at the opportunity to earn $40k, and are wealthier because previously they were earning less than $40k (by definition, otherwise why would they jump at the opportunity to earn $40k). People in the US are now earning $0. Quality of life has increased for many, many millions around the world due to outsourcing, and one could make the claim quality of life (or at least security of income) has decreased for millions in the developed world. But this is arbitrage at work. Of course, labor arbitrage isn't the only type, there's also environmental arbitrage (which is bad for the world).