What do you presume had happened to get the U.S. corporations and workers to take their eyes off of their own economic interest? It seems the "carrot" of cheaper prices were dangled in front of them, but they didn't perceive the "sucker punch" of occupational layoffs that was inevitable in its wake. After all, we did, and do have economists such as Alan Greenspan, and now Ben Bernanke, who watch economic trends and make known their predictions.
How could this have happened??
Greed!
The phenomenon you are referring to, where U.S. corporations and workers prioritize lower prices over their own economic interest, can be attributed to a complex set of factors. Here is an explanation of some of the key elements that may have contributed to this situation:
1. Globalization and Trade Liberalization: Over the past few decades, there has been a significant increase in international trade and the liberalization of trade policies. This has resulted in the movement of production and manufacturing jobs to countries with lower labor costs, such as China and other developing nations. U.S. corporations may have been enticed by the potential for cost savings and access to larger consumer markets abroad.
2. Consumer Demand for Lower Prices: In a competitive market, consumers often prioritize lower prices when making purchasing decisions. This could put pressure on corporations to find ways to lower costs, including shifting production overseas to take advantage of cheaper labor. As a result, corporations focused on meeting this demand in order to remain competitive and attract customers.
3. Supply Chain Optimization: As companies expanded globally, they began to build complex supply chains that spanned multiple countries. This allowed them to take advantage of cost efficiencies and harness specialized skills available in different regions. By spreading their operations across various locations, corporations could optimize their supply chains and reduce costs.
4. Economic Forecasting Limitations: While economists like Alan Greenspan and Ben Bernanke are renowned for their expertise in analyzing economic trends, predicting the long-term effects of trade liberalization on specific industries and employment can be challenging. Economic forecasts are based on assumptions that may not account for all the complex dynamics at play in a globalized economy. As a result, the potential impact of offshoring on occupational layoffs may not have been accurately predicted or communicated.
It is important to note that this explanation is a simplified overview of the underlying factors that may have influenced corporations and workers' decisions. The motivations and consequences of globalization and offshoring are multifaceted and can vary across industries and individuals.