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Is Obama the Offshore Outsourcing President?

Submitted by Robert Oak on Wed, 02/04/2009 - 11:31.
  • Diana Farrell
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  • McKinsey Institute
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  • outsourcing

Yesterday Obama nominated the most notorious offshore outsourcing Senate advocate, Judd Gregg, for Commerce Secretary.

Today global labor arbitrage and offshore outsourcing expert, expert, Dr. Ron Hira, spells out the hidden multinational corporate offshore outsourcing agenda in an op-ed, The Obama administration promotes outsourcing:

We know from a recent EE Times survey that offshoring is the No. 1 career concern for EEs. The Obama Administration has been in office just a few weeks now, but we already know how it will address the offshoring of engineering jobs.

It will promote it.

EE Times, the Wall Street Journal and InformationWeek all recently published important stories on IBM's layoffs and the company's links to offshoring. IBM is now using the euphemism, "resourced actioned" to describe layoffs. The most remarkable aspect of the story was IBM's ability to take the Fifth Amendment on questions about the geographic distribution of layoffs, and even refusing to publicly state the number of U.S. workers it has.

Here's what the Journal published on Jan 27: "IBM Chairman Samuel Palmisano told workers in an e-mail last week that worldwide employment topped 400,000 at the end of 2008, up from 386,000 at the end of 2007. He didn't break out U.S. employment, and IBM spokesmen declined to do so."

IBM's unwillingness to publicly disclose its massive offshoring operations is no surprise, especially as it lobbies Congress and the Obama Administration for billions in taxpayer handouts as part of the economic stimulus package now being debated by Congress. What is remarkable is that the company is able to get away with it in the current job market with this President and this Congress.

InformationWeek reported on a new initiative by IBM, called Project Match, which is supposed to connect displaced U.S. workers with job openings in low-cost countries like India. But the catch here is, of course, that U.S. workers would be paid Indian salaries. How many U.S. workers can take those jobs and still hope to retire back in the U.S.? The answer is none.

So, where is President Obama, the politician who campaigned against outsourcing? The EE Times story that detailed the stealth layoffs and reactions of IBM workers, appeared on the same day that the President was chumming around with IBM's CEO Palmisano. Here's what President Obama said about why he invited to the White House Palmisano and nine other CEOs who are offshoring jobs:

"They make things, they hire people," the President said of the meeting participants. "They are on the front lines in seeing the enormous problems in the economy right now. Their ideas and their concerns have helped to shape our recovery package in order to get this economy back on track."

Can President Obama really be this naive? Or is it simply that he doesn't believe offshoring matters?

There is clear evidence that the latter is the case. On the very same day he was meeting with "CEOs [who] outsource American jobs"--a phrase he repeatedly and derisively used during his campaign, he named McKinsey's & Co.'s Diana Farrell to his National Economic Council, the inner circle of economic advisors in the White House. Farrell has done more to promote outsourcing than nearly anyone else in America.

Indeed, Chuck Schumer is also using McKinsey for financial regulatory reform government contracts. An conglomerate with their own agenda analyzing the United States regulatory financial system?

How in God's name can a organization which brazenly promotes global labor arbitrage and offshore outsourcing, in fact is in the business of offshore outsourcing, get so close to policy makers? McKinsey has issued debunked papers that are full of corporate agenda, incorrect assumptions, bad mathematics, and well, they should be an embarrassment to any researcher simply due to the inaccuracy of such reports.

Click on the EETimes link for the full article. Hira is spelling it out for us in no uncertain terms. Working Americans are in huge trouble.

‹ IBM to Fired U.S. Workers - Offshore Outsource Yourself! UK Considering Ban on Foreign Guest Workers Due to Labor Market Conditions ›
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The beatings will continue

Submitted by seebert on Wed, 02/04/2009 - 11:43.

Until Morale Improves

Or in other words- I have a feeling that this subject is going to be Obama's Iraq as unemployment rates hit double digits.

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keep doing corporate lobbyists' bidding

Submitted by Robert Oak on Wed, 02/04/2009 - 11:55.

The results are already in, they are literally destroying the United States Economy....

their proposals clearly do not work, the statistics, all of the indicators prove it. Continuing down the same path...well, it will be much larger than Iraq.

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Gotta say....

Submitted by A.Citizen on Wed, 02/04/2009 - 13:11.

....looks very much as if the Obama 'Presidency' is over.

Sucker is very, very close to DOA.

Republicans are now talking about how there is no need for a stimulus package.

The Gregg fiasco shows a level of political ineptitude that borders on the criminal.

Barney Frank turns suckup to the banks....

It does not look good for the citizenry. But....

...Wall Street will be taken care of. Yep, CEOs gotta 'make do' with no more than $500,000 in pay; that's tough sledding for the 'Masters of the Universe'.

Perhaps this will wake them up. Remember your Nietzsche folks and prepare for the very worst.

Pop quiz: What company was the biggest contributor to Barry's campaign?

First Prize is a free Happy Meal!

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yup--Corps and those owned by them are already running the show

Submitted by amberglow on Wed, 02/04/2009 - 18:25.

there's no way now that we'll have real job growth by 2010, and then the GOP will take back at least 1 part of Congress and it'll get even worse.

such a lost opportunity-- if Obama had only been a real Democrat who believed in the Govt actually helping regular people, and in traditional Democratic principles.

He's not even a Rockefeller Republican, but a regular one.

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