It¡¯s about time someone spoke the\rtruth concerning outsourcing. The politicians sure\rwon¡¯t. They prefer to do finger-pointing saying it\ris ¡°his fault¡±. It is those greedy manufacturers\rwho want to make bigger profits by having cheap\rlabor in Asia perform your task for less money.

Did anyone ever tell you that if it wasn¡¯t for\routsourcing you might not have a job? Did anyone \rever tell you that the underwear, shoes, jewelry \rand hundreds of other items you own would cost \rmuch more if it wasn¡¯t for outsourcing? Probably \rnot.

Sure, many tasks are being sent\roverseas. Why? Just because it is cheaper? No,\rbecause the manufacturer that item had to do it in\rorder to be able to compete with other companies\rmaking a similar product. If your company or any\rcompany cannot remain in business then they will\rcease to exist and you will be out of a job. As a\rformer manufacturer I will tell you it is\rdog-eat-dog out there and every company is doing\rits best to maintain sales and profits. The\rcompany did not go into business to make products\rand give you a job; they went into business to\rmake money and if they can¡¯t do that they (and\ryou) will be gone.

Profits is not a dirty word. Again if\rit wasn¡¯t for profits you would not have a job.\rThe guy who owns the small business or the\rthousands of stockholders who own the big\rcompanies expect that company to make money or\rthey will sell their shares and you will be gone\rtoo.

When you work for someone you want to\rdo everything possible to contribute to their\rbottom line. Turning of the extra lights, keeping\ryour machine properly maintained, getting a\rshipment out to a customer even if it means\rstaying a few extra minutes and many other little\rthings that you know better than I.

Until about 1975 we did outsourcing\rand no one objected to it. The widget manufacturer\rstopped making screws and bought them from the guy\racross town or in the next state who made exactly\rwhat he wanted and at a price cheaper than he\rcould produce them in his widget factory. Now we\rbuy the screws from China and India at a price\rthat is half or less than those made in the USA.\rIf not each widget might cost dollars more and be\renough to lose business to a competitor. If the\rwidget company did not outsource there could be a\rstrong possibility they would go out of business.

Outsourcing is not a U.S. phenomenon. It is\rhappening to Canada, Germany, Japan, England,\rFrance, Australia and many other countries. Even\rMexico is losing jobs to Asia because they can\rproduce the same quality goods and services\rdelivered here for less.

Outsourcing is not only here to stay, but \ris going to expand as competition becomes even \rmore fierce.

F*R*E*E investment letter. http://www.mutualfundmagic.com\rAuthor of best seller "If It Doesn't Go Up, Don't\rBuy It!" Copyright 2004 Albert W. Thomas All rights\rreserved. Comments to al@mutualfundmagic.com\rFormer 17-year exchange member, floor trader and\rbrokerage company owner.