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This is nothing compared to 2000, or even 2008. You might have a point about offshoring. With tech workers insisting they're just as productive working from hom

This is nothing compared to 2000, or even 2008. You might have a point about offshoring. With tech workers insisting they're just as productive working from home, you might as well hire people in countries with cheaper homes.

maerF0x0 4y ago
which is why America needs deflation, or deflationary pressures (such as devaluation of the dollar against foreign currencies expressed as local price inflation) .
- shaoonb 4y ago
  Honest question: how can devaluing the dollar be deflationary?
  - maerF0x0 4y ago
    The key is in the combination of words. > Devaluing the dollar against a foreign currency. Ok, so labour traded for global goods intermediated by cash means we can remove the intermediary and think about the just the work for goods trade. Imagine I work 1 hour for 10 loaves of bread. If I get more bread for my time, my value has inflated, if I get less bread for my time my value has deflated. Ok now lets add money to the picture. (please excuse unrealistic exchange rates and the lack of profit margins to help illustrate the point) If I work 1 hour for $20 and it currently buys $30 CAD and $30 CAD buys 10 loaves of Canadian bread, then we have the same scenario as describe before. The price of bread on the shelf in USA is $2 USD, or 6 minutes of my time. Now looks what happens when we devalue the USD... I work 1 hour for $20 and it buys $20 CAD (Less than before), and $20 CAD buys 6 2/3rds a loaf of bread. The price of a loaf of bread on the shelf is $3 USD ($20 USD/6.66) or 9 minutes of my labor. See how the price in USD went up? That's the deflation of a currency against another currency. And that's how US labor becomes "cheaper" because the rest of the world now gets 9 Minutes of your time for one loaf of bread.
deleted 4y ago
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mathverse 4y ago
This is not the case. Companies have already done this and It did not really work. Sure a lot of junior positions were and will be outsourced but the "good" worker will always be paid accordingly. This is why you can see companies hiring in India and then bringing a lot of people to the US.

maerF0x0 4y ago

which is why America needs deflation, or deflationary pressures (such as devaluation of the dollar against foreign currencies expressed as local price inflation) .

shaoonb 4y ago
Honest question: how can devaluing the dollar be deflationary?
- maerF0x0 4y ago
  The key is in the combination of words. > Devaluing the dollar against a foreign currency. Ok, so labour traded for global goods intermediated by cash means we can remove the intermediary and think about the just the work for goods trade. Imagine I work 1 hour for 10 loaves of bread. If I get more bread for my time, my value has inflated, if I get less bread for my time my value has deflated. Ok now lets add money to the picture. (please excuse unrealistic exchange rates and the lack of profit margins to help illustrate the point) If I work 1 hour for $20 and it currently buys $30 CAD and $30 CAD buys 10 loaves of Canadian bread, then we have the same scenario as describe before. The price of bread on the shelf in USA is $2 USD, or 6 minutes of my time. Now looks what happens when we devalue the USD... I work 1 hour for $20 and it buys $20 CAD (Less than before), and $20 CAD buys 6 2/3rds a loaf of bread. The price of a loaf of bread on the shelf is $3 USD ($20 USD/6.66) or 9 minutes of my labor. See how the price in USD went up? That's the deflation of a currency against another currency. And that's how US labor becomes "cheaper" because the rest of the world now gets 9 Minutes of your time for one loaf of bread.

deleted 4y ago

[deleted]

mathverse 4y ago

This is not the case. Companies have already done this and It did not really work. Sure a lot of junior positions were and will be outsourced but the "good" worker will always be paid accordingly. This is why you can see companies hiring in India and then bringing a lot of people to the US.