alt text: 18 of our 40 employees are located in the Philippines. Insanely competent, great judgement, and $5 per hour. If you run a small business and don't have overseas help you're at a disadvantage
this post was submitted on 21 Feb 2024
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$5 in the Philippines probably has vastly more purchasing power than it does in the United States. If you're supposed to pay them the same salary as to someone working in the US then why not just hire an American and have the dude in Philippines go back to picking coconuts for $2 and hour or something. I wouldn't be surprised if the Philipino worker is more than happy with their salary and you might even be able to employ several people for the same amount of money.
This same effect applies to charities aswell. Donating money to some poor african country helps many more people than it does when given to a local charity.
Sure yes short term it is probably a good option for the average Filipino or any other person taking an American job in a foreign country for less money than that company would pay an American because yeah it does pay relatively well in their situation. However, it takes advantage of their material situation to pay them monetarily less than they would be paid in the US. Essentially it uses the fact that they need the money more (their demand) to pay them less. Is this not similar to paying any American poor person less because they need it more?
Regardless of how you feel about the morality of all that it's fucking terrible for the Philippines. That Filipino labor is not benefitting the Filipino economy it's benefitting the US economy. This might not be so bad if they were being paid more or even up to the amount that they make for that American company (though this would never happen under capitalism bc a company needs profit) because at the very least that loss of labor power would be supplemented with equivalent monetary gain.
So in short, outsourced jobs takes advantage of poor people to pay them less and strips foreign economies of their labor power
No because the poor american still has to pay high US prices for everything they buy. You can't live a decent life in the US with $5 an hour but you can in the Philippines where the minimum wage is around $10 a DAY. Another commentor in this thread told how their relative bought a restaurant dinner for 12 people for 50 bucks in the Philippines and that includes the tip.
This is not entirely true either. That Philipino working for the US company spends their earnings in the Philippines and that benefits their economy.
I covered both of these points.
The company is still using a person's material situation to pay them less. More purchasing power in their subjective economy is part of their material situation. They are still receiving monetarily less as is their country.
I directly covered your second point, while they do spend the money they earn from their American job within their economy they are not being paid the exact value of their labor because profit is being extracted so the amount of money they stimulate their economy with is not as valuable as their labor would be. I don't want to explain the entire labor theory of value here because it would take up too much time and space but you can look into it if you'd like. Put simply, the profit that company makes is extracted from that employees labor meaning that some of their labor is being used not to benefit their country or people but another's. Outsourcing is an extraction of mans most valuable resource from the less fortunate to the more
Yeah I'm not claiming these practices are without their issues but consider the alternative: if the company was forced to pay the Philipino worker the same salary they would pay an US worker then why would they hire a person in the Philippines? They wouldn't. They'd hire an american instead and now the Philipino worker would need to find a local employer and it's unlikely they would pay as much as the US based company does now.
LOL, I'm the guy you quoted. The arguments in here are straight childish, with a child's view of how money works. They see $5/hr. and scream.
https://www.numbeo.com/cost-of-living/country_result.jsp?country=Philippines
And I question even those numbers! From what my wife and her friend's American husbands have told me, and from the videos I've watched, it seems even cheaper than that.
Then there are the idiots saying we should flood the country with American dollars, blow up inflation and the wealth gap. Sound economic planning right there.