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Outsourcing Critics Ignore the Real Job-Killers

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posted on Mar, 19 2004 @ 08:26 AM
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A lot has been reported lately on the out sourcing going on in this country. Lou Dobbs speaks on it almost daily.

There may be more to it than companies greed for more and more profit.
Are some states tax structures contributing to the companies fleeing offshore? Should we be spreading some of the blame for job loss to the states??

"Outsourcing" has become a dirty word in political discourse lately. Fear and anger about American manufacturing and tech jobs moving overseas fills newspapers and the airwaves.

Yet critics of outsourcing miss a crucial point, says Radley Balko, a policy analyst at the libertarian Cato Institute.

"[R]arely do pundits and commentators look at the relationship between companies moving plants overseas, and the kinds of tax and regulatory policies employed by the states they're moving away from," says Balko, in a
recent Cato commentary.

"As it turns out, states with business-friendly public policies attract and retain jobs. States with policies hostile to business tend to lose them.

and
For all the talk of offshoring, the cost of packing up a domestic plant and moving it overseas is significant. Even outsourcing tech support and programming doesn't always make economic sense. American workers are still far more productive than, for example, Indian workers -- even when you factor in the lower wages. It's only when the onus of complying with federal, state and local tax laws and regulations becomes overly burdensome that it makes economic sense for a corporation to shop jurisdictions for a better deal.
www.cato.org...

[Edited on 19-3-2004 by DontTreadOnMe]




posted on Mar, 19 2004 @ 09:07 AM
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Outsourcing allows the execs to collect more $$$$ and put out the same crap with less quality at the same high price. It's all greed and short term vision. Penny Wise and Pound Stupid. If the companies in the world don't like doing business because of the US government then they should move their as. out of here and try to do business in China and also give up their freedom and protection provided by the US Military. When a terrorist blows one of their execs heads off, or takes one hostage, cry to someone else or shutup.



posted on Mar, 19 2004 @ 09:11 AM
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Outsourcing also allows companies to still sell products to American's without having to pay taxes on their business. It also gives them the opportunity to operate more by illegal means. These American owned companies that outsource, their executives should be tried as traitors. Corporations have screwed this WORLD over long enough...



posted on Mar, 19 2004 @ 09:17 AM
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Originally posted by DontTreadOnMe
"As it turns out, states with business-friendly public policies attract and retain jobs. States with policies hostile to business tend to lose them.

I know what out sourcing does. What I find interesting is that some states make be doing MORE than their fair share to drive companies away.
I'm also thinking maybe big union states are more likely to lose jobs to other countries.



posted on Mar, 19 2004 @ 09:37 AM
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I don't approve of outsourcing right now after Bush broke his promise. When going into office he promised to bring back the jobs for the American people. As of right now more and more people are loosing thier jobs becaus of this outsourcing and I don't approve of it. Here's another article on out sourcing:

www.misleader.org...



posted on Mar, 19 2004 @ 09:48 AM
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Thanks for that mrmulder

But I don't think all the blame goes to the federal government here. There are states that are not losing jobs to foreign countries because the states have a climate that is conducive to business staying in that area.
The article above mentions that it is not cheap to move a business and often the productivity was better in the US.



posted on Mar, 19 2004 @ 10:07 AM
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I agree that states play a huge role in this. Before my company began to outshore our technical positions we went to the state looking for assistance in the tax codes. the company was having a hard time justifying the huge cost difference between domestic and intl work forces. We were good Texas citizens building new buildings adding jobs every year, supporting social programs and the state ignored us. Now they are loosing about 3,000 jobs and are mad.

BTW: companies that are willing to move into Texas are getting a great deal tax wise, they just won't give it to existing companies already there.

I am normally for states rights but this has to be addressed on a national level. Sadly, it won't be until the people push this and make it an issue in all elections from the local governments, though states and national.



posted on Mar, 19 2004 @ 10:12 AM
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Originally posted by nativeokie
I am normally for states rights but this has to be addressed on a national level. Sadly, it won't be until the people push this and make it an issue in all elections from the local governments, though states and national.

I agree with you there, nativeokie, but I am afraid the national answer will be to promote the agenda that is following in states losing jobs. NWO and all that. (I really, really think the govt wants the downward spiral in this country to contineu!)

I also wonder if federal intervention could work. The US govt doesn't have the greatest track record when it comes to unifying the country through legislation, IMHO.



posted on Mar, 19 2004 @ 10:15 AM
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Well, I live in Texas and still have a job thank goodness. I just feel bad for those who don't. And I agree with Tread and Nativeokie. The states need to play a bigger role in creating more jobs on our homeland. I'm just wondering if the Bush Administration isn't letting them. Just a thought.



posted on Mar, 26 2009 @ 04:48 PM
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Obama was asked in a Town Hall meeting today, "when will jobs stop being outsourced and given to Americans who are out of work?"

Obama told the lady to expect an increase in job outsourcing until the economy improves. I heard this just now on NPR radio so probably it will be on the news tonight.

So, the G-Men can do anything, just anything to screw our country up, but they can't do anything to really fix it? They don't have the power to put a one-year moratorium on outsourcing? Crazy just crazy.




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