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I Found The Outsourcing Culprit

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Outsourcing, the bane of evil in modern America. I believe in keeping jobs here in America. I'm willing to pay more to know that Americans are working before someone somewhere else is. I also call bullshit on all the globalization and other excuses used as to how it will better the world.

Based on US census bureau statistics 72% (217,168,077) of US Citizens are of working age and of those 63% (138,820,935) are working.

The main reason I call bullshit is that between India and China we're looking at 2 billion people. I realize their demographics are not identical to ours, but if I even use conservative estimates of 50% of their population at working age instead of 72% as it is in America, that still leaves 1 billion people in those 2 countries at working age.

Now we're supposed to be the largest economy on earth and we only employ 138,820,935 million people. Compared to those two countries populations we could only employ 13.8% of their potential workers if we sent the whole damn shabang over there.

Globalization is a bunch of smoke and mirrors. Shifting our labor force to other countries for lower wages takes money out of our economy.

A study done by San Francisco-based McKinsey Global Institute, an independent research group with McKinsey & Co. recently tried to spin outsourcing as a money maker. They claim the following.

For every dollar spent on offshoring by the US in 2002, the total value derived by the global economy was $1.4 to $1.47.

While 78 per cent of the value, $1.12 to $1.14, was retained in the US, only 22 per cent, $0.33, was accrued to offshoring destinations like India.

Giving a breakdown of the value created in the US by offshoring, the report said that every dollar resulted in savings of 58 cents to US investors and customers. At the same time, it resulted in an increased import of US goods and services by providers in India.

I say big deal. The fact of the matter is that a median household income for the year 2001 was $42,000. You're directly taking that $42,000 out of our economy in order to get a 14% return.

Americans are the most productive workers in the world. The 40 hour work week is a myth with most people working 55-60 hours or more a week on average and making sacrifices in order to work. I don't know why you would want to replace a hard working person who's busting their ass for someone overseas who probably won't reach that level of loyalty or productivity.

In the end all this will do is drive the current pay rate down across the board for every job in America. There needs to be reform.

There's a good article at news.com that covers a lot of the issues surrounding offshoring including reform, intellectual property drain, innovation and how india views the angry american workers who have been let go after training their replacements.

Oh, I also took a journey in search of where most peoples jobs are and all threads led to this one guy who currently holds 25 IT positions and earns 10 bucks a week!

Guy who stole my job

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Posted by Digger on August 12, 2004 10:26 PM (Permalink)

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Well Digger, How about this. Let's outsource the entire EXECUTIVE branch of our federal government. At this point,,,Disallow the return of any governmental actions or ideas! Do the same with 80% of the legislative branch. Give the 20% left 2 marbles each and put each one in a corner of his/her own. They will be able to amuse themselves for an indefinate period of time. Completely do away with the Judicial branch. And return law enforcement to the COUNTIES. With this done. We just might be able to return to the REPUBLIC our forefathers created for us. WE THE PEOPLE

Posted by: Smokey on January 24, 2007 03:52 PM

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