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I always wonder why people are so naive. Do they really think the local engineer hired in a developing country would be payed the same salary as an engineer in
by sinuhe69 4y ago
I always wonder why people are so naive. Do they really think the local engineer hired in a developing country would be payed the same salary as an engineer in New York? And what about outsourcing to the dirt cheap workers in India or Kenia? Or the illegal immigrants doing cleaning, construction or dishwashing in your neighborhood?
Even if the multinationals use different entities to hide the fact, it’s only a legal construct to hide the exploitation. Of course there are many subtleties and perhaps minor costs but THAT IS basically the reason why companies outsource/hire in low income countries. That’s the reason for the cheap shirts you can buy and the profit the capitalists enjoy.
Exploitation is the most fundamental mechanism for the buildup of the immense wealth people possess today. Innovation is on the other hand a very rare and relatively recent factor.
- imtringued 4y agoRegional prices differences are the result in differences in the ability to pay. Indian companies get less money to pay their workers. It's not like they are earning as much as American companies but decide to pay their workers less because they have a fancy AI price predictor. If Indian companies are as successful as American companies, then wage differences will disappear eventually.
- sinuhe69 4y agoI'm not talking about Indian companies. I'm talking about local Indian hired by American companies or their daughter companies.