How is outsourcing jobs, improving america's economy?

Question

Only the republicans think that unemployment is down, and the economy is better than ever? Doesn't anyone pay attention to the details, on how the big companies that are left are filing bankruptcy, or needing more federal aid, just to function? Most of America's things are made over seas. When will we get our companies back, and start provide more high paying jobs for Americans.

Answer 1

it's not.

but some corporations will be able to show improved earnings on the short term as a result of reduced costs and decreased quality (that not many seem to notice.)

what happens when the american middle class loses it's financial clout no one seems to want to think about.

Answer 2

It only helps corporations. Anyone who touts the stupid unemployment figures isn't looking at what is going along with these new wonderful jobs - many are contracted, no benefits, no or little vacation, etc. But mainly only contractors so no security. Anyone who will tout the hourly wage increase is also blinded. Why is it when the government gives out stats, they don't break it down. What the hell does the average of any stat tell you anyway? Nothing. Give the details - otherwise one single CEO giving themselves a huge raise will skew everything to look good.

But... but -> why do you think the Democrats are bottom up when they danced around for NAFTA, CAFTA, SHAFTA, and the likes along with the republicans.

Answer 3

This may shock you, but we heard the same alarmist screed in the 70s. OMG, everything's made in JAPAN! America is collapsing, the Japanese and the Saudis are going to own everything!

Well, manufacturing has been declining in America prettymuch as long as I've been alive - and I'm not exactly young. Yes, China has become a huge global manufacturer - it has an absurd abmount of cheap labor, afterall, and it's keeping it cheap by depressing the value of the Yaun. It's taken a lot of manufacturing away from once-cheap-labor countries like Japan, Taiwan, and the like, and even from other countries where labor is still genuinely cheap, just not quite as cheap or not quite as good as China, such as Mexico.

For all that, lots of manufacturing is still being done all over the world, even in the US.

The movement of lower-skill, lower-wage jobs from highly developed economies like that of the US, to lower-cost, developing economies benefits both economies. The developing economy gains increased income and investment, which helps pull it's people out of poverty, and the developed country gains less expensive goods, which helps offset the constantly-rising cost of living such places experience. Workers in a developed country can re-train to do higher-value work more easily than those in less developed countries, since they are generally more educated, and the infrastructure and investment in both (re)training and productivity are already there.

Answer 4

You're absolutely right.

The Bush administration sees the benefits to the investor class as being beneficial to America as a whole. Corporate profits are up, so stock dividends are up, so the economy is flourishing, right?

Corporate pensions are being dumped onto us taxpayers, so that the companies can pay dividends, and taxpayers can handle the defaulted pensions. Profits are good, right?

The average factory worker in China earns less than a dollar a day. The average CEO in America "earns" more in a day then his average employee earns in a year. Life is sweet, right?

Employment is up, up up! I used to be able to get by with only one job, but it went overseas so now I have to work three jobs. I used to have only ONE job, and now I have THREE, so my personal employment is up 300%!!

Answer 5

Here's an article quoting bush ACTUALLY DEFENDING AND PRAISING outsourcing American jobs!!
That man is a kook.

Bush economic report praises 'outsourcing' jobs
WASHINGTON -- The movement of U.S. factory jobs and white-collar work to other countries is part of a positive transformation that will enrich the U.S. economy over time, even if it causes short-term pain and dislocation, the Bush administration said yesterday.
The embrace of foreign "outsourcing," an accelerating trend that has contributed to U.S. job losses in recent years and become an issue in the 2004 elections, is contained in the president's annual report to Congress on the health of the U.S. economy.
"Outsourcing is just a new way of doing international trade,"


http://www.post-gazette.com/pg/04041/271362.stm

Answer 6

Republicans always measure the economy from the top down. Democrats always measure the economy from the bottom up.

Those companies that are outsourcing jobs are making so much more in profits that it looks like profits are up when you look at it from the top down.

You see a whole new reality when you look from the bottom up, and that's what I'm concerned about.

Answer 7

You are able to understand that companies are not entities of the government and thus are free to shift operations to different locations, whether different states or different countries, right?

The federal government has no Constitutional authority to prevent them from doing so.

If shifting operations overseas, or moving the HQ in order to get out from under the onerous US taxes and be more competitive internationally, is advantageous to that company, if it keeps them competitive, if it increases income and dividends, then it would be foolish to not do so.

The government should have no involvement in this decision.

Answer 8

It isn't. It's making more money for the people who sit on the Board of Directors of the companies. It's hurting the working American, which is why we have a shrinking middle class.

Answer 9

You can thank organized labor

They got greedy and priced themselves out of jobs. I don't blame companies for moving overseas. Who thinks some unskilled schmuck deserves $40.00 an hour w/benefits when someone in China will do it for a fraction of that?

Not me

Manufacturing is gone, and isn't coming back. Train for another career or start your own business - anything - but just stop whining!

Answer 10

the republicans arent responsible for outsourcing, perhaps unemployment is down, outsourcing is bad for the econmoy yes, but its not destroying it, at least not yet. we already had an unfavorable balance of trade, making it worse wont do much at the present time to our GDP