GE processes insurance claims and loan applications in India. It all seems so logical. It's not unreasonable for companies to reduce expenses where possible. When lots of people compete for houses prices tend to rise above the rate of inflation, thus creating real wealth for homeowners. Alternatively, if the job base erodes, there is less demand for homes.
Less demand equals fewer sales and maybe even price declines.
Self-interest is a powerful force and companies will send jobs overseas with electronic rapidity as long it pays. Such programs didn't do much for textile workers, steel mills, shoe manufacturers, or auto workers, so there's little reason to believe that software engineers or call center operators will do any better. You could, however, argue that sending jobs overseas is remarkably short-sighted. Not people who are unemployed. For more articles by Peter G. Miller, please press here .