Create Jobs by Asking for a U.S. Customer Service Representative?!

I received an email that began with this:

I want to ask each of you to consider doing the following when you are talking on the phone to any US customer service representative that is based in a foreign country (like India ).

To the people who believe this action will increase jobs, remember there is no such thing as a free lunch.

This will not create new jobs in the U.S. It will increase labor costs of the firm and reduce it’s cash flow. The firm budgeted X amount of dollars for the initial project and expects savings of Y dollars. If the savings do not materialize the firm has various options to mitigate the increased expense. It might report lower earnings, it might cut back on other initiatives such as R&D and reduce its future growth, it might cut expenses in other locations, it might lay off more people, it might automate more job functions such as customer service. The list goes on and could be a combination of actions.

The point is costs increased and action must be taken to mitigate it.

Further, if other countries do the same there will be less trade, which leads to a whole other conversation.

Full comment here.

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