9/11-Unemployment!!!!!?

Question

In the aftermath of 9/11, the trend in companies in the US has been to outsource jobs outside the US. There have been claims and counterclaims that this has led to a substantial increase in unemployment.

What is your take on this? why?

Answer 1

It's cheaper. In a county were one of the candidates is openly socialist in philosophy (though not in name), where they are told that their success is reason enough to have their money taken away and redistributed, they are setting up conditions...

...to leave.

Can't blame them. People who "hate corporate America" are trying desperately to turn us socialist, despite the repeated failures of socialism and the terrible cost in the form of a plummeting standard of living for everyone as rich people, successful people, those who create businesses and jobs decide they don't WANT to live in a place that robs them.

Really sane policy, socialism.

If fight it any time I can.

Answer 2

My own proof is anecdotal, but I offer it anyway.

At the time of 9/11 I worked for a small but successful NY printing firm. The company was doing well enough that those of us who'd been there since its inception were feeling pretty secure. It was a techy kind of job, and you had to be up-to-date, and myself, and the people around me felt like we were at the front of something that could give us security down the road.

Immediately after 9/11, the man who ran the company changed his whole strategy. People's jobs were no longer secure. People took cuts in pay and had to accept more work. He began dumping workers and hiring new workers who would carry the workload for smaller salaries.

Part of it was that for two years after 9/11, New York's economy was depressed. Restaurants were failing, Broadway was busting, new business, particularly downtown jobs, were failing.

But five years later, the city's economy was on the rebound;
but the businessmen who cut their workers jobs and salaries found they liked their new downsized configuration. I lost my job, a year before my retirement, along with several other older workers. That was two years ago. Now, even though we are highly skilled workers, not one of the five laid off workers from that company have found jobs.

We see younger workers filling the places once occupied by older more experienced workers, and we find they are working for half the salary.

I think this is a common experience in NYC, many people have told me similar stories.

Answer 3

i own a small themed apparel company.

in the year before 9/11 we sold over 15,000 units to companies that owned tourism related shops all over the northeast usa.

in the year after 9/11 i could understand why companies would order less - tourism was dramatically down.

but no longer - it has rebounded, but the orders never came back.

companies have found that they can order cheaper knock off products from india and china.

we have done well with direct retail sales (online sales) but these companies have discovered that they can sell the cheapie stuff and 'fool' their customers.

i dont' think this is a long term strategy.

american companies seem to have stopped long term thinking...

Answer 4

They were doing that much earlier than 9/11

The good news is that I recently read a report that many US companies are not as thrilled with outsourcing as they once were. Guess it didn't save them as much $$ as they thought.

I refuse to buy a DELL pc because all their tech support is over in Bangledesh or Bangalor India.

Answer 5

Where are your statistics that support this contention? Outsourcing has been growing steadily for many years, most of them before 9/11.

Answer 6

they have been outsourcing for a long time..where have you been?