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.

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.

Less than what? Your personal belief that they should be paid a us salary because you say so? And if so, should that be a new York city salary, a Louisiana salary, or?

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

Again you have this imaginary number in your mind that you feel everyone should be paid regardless of circumstances. I keep thinking this is not ethical, but from an economic standpoint the Filipino employee is better off than working for less money for a local employer or not working at all because of unemployment. And so are his family and their government.

Stop comparing with the American salary, it doesn’t make any sense. If the American company was paying an American salary, they would hire someone in the states.

You’re straw-manning. No one is advocating for flooding the country with foreign money. I’ve been reading your comments and I think you might be misunderstanding the argument. It’s a more nuanced criticism about capitalism, not an argument for how much workers for foreign companies in the Philippines should be paid.

We all agree this is not good ethically, but you are confused on how the economics work. Foreign money flowing in, and at a higher salary than local average? That’s money that gets taxed by the Filipino government, that buys groceries at the corner shop, pays for a local nanny and overall improves the local economy.

Also what are you on about with the reduction of labour force in third world countries? They have unemployment up the roof and no employers by definition, it’s a third world country the one thing there’s no shortage of is people looking for work

Using your analogy, you can argue that training and work experience provided by a foreign company is like building ports, roads, or other infrastructure that is necessary for trade. Infrastructure, as long as it’s used well, is undeniably good for a country.

Also, if wages were based on net revenue generated from a worker, that would 1. be impossible to measure, and 2. remove any incentive for a company to hire Filipino workers.

Another issue is that you really can’t build a country efficiently like the way you describe it. Trade is necessary to get good technology, and investment is needed to get said technology within your country’s borders. Effectively banning trade is just like shooting yourself in the foot and getting your other 3 limbs chopped off.

For the record, I agree with more taxes. I’m ok with you replying more taxes.

But we need new laws in addition to new taxes, that prevent companies from splitting up their companies (money/employees) into distinct legal entities based on geographical location. Good luck with that, though.