Theoretically, what would happen if every American job was outsourced?

[Matty]

Imagine that every business in America grew big enough and powerful enough to rely entirely on foreign labor for all needs and services. Would this ever happen? What would prevent it from happening? Is this the inevitable end of capitalism?

[Deus Naturae]

If the President's job was outsourced, it would likely mean that the US was under foreign occupation.

Seriously though, the situation you describe is literally impossible. If everyone was employed by a corporation, all of which suddenly outsourced every single job, people could still be self-employed (if the corporation owned everything and they all suddenly pulled all of their capital out of the US, the country would likely revert to a primitive economy characterized by farmers, hunters, etc) or, if any capital remained in the US, they could start new businesses. And foreign companies would presumably want to sell their goods in the US, and would need outlets to do so, which they would need to employ people to run and manage. Obviously there would be incredible economic devastation, but new jobs would inevitably appear.

The exception to this would be if every person were incapacitated by, say, a self-maintaining computer, or a supernatural deity. Only a situation in which every person was literally prevented from moving could result in a 100% unemployment rate.

[Gustaf]

I don't think you understand how this works. HINT: outsourcing has little to do with how big and powerful companies are.

[Meursault]

The advent and mass proliferation of superadvanced technologies like rapid fabricators would also push unemployment very high, perhaps not to 100% (some people would doubtless work because they enjoy it, and some social services may prove immune to automation) but very close to it.

[MurrayBannerman]

I'd assume this situation is post nuclear war.

[ag]

US wageswould drop to zero, so that everybody wpuld want to hire Americans. China and India would start outsourcing to the US.


 

[Person Man]

It would be an interesting thought experiment if automation became good enough to do high skilled professional jobs.