offshore outsourcing

U.S. Trade Agreements Offshore Outsources Jobs so Congress Passes More of Them

We know bad trade deals have cost millions of American jobs. We have a jobs crisis with no growth in site. So, why in God's name would Congress pass more of the same? The South Korean trade deal has been analyzed to lose 159,000 jobs. The Panama trade agreement creates corporate tax havens that will be completely out of reach by the United States. Add in the Columbia trade deal and we've lost 214,000 jobs.

The U.S. Congress Joint Economic Committee held a hearing, aptly titled, Manufacturing in the USA: How U.S. Trade Policy Offshores Jobs. The title says it all, eh? Unfortunately the actual hearing didn't have the right economists who would show amply with statistics and facts, the overall hearing title is oh so true.

Contained within is the obligatory other side of multinational corporations, and the real agenda of this hearing is some token retraining for U.S. workers who will lose their jobs as a result of these bad trade deals.

Workers are not alone in wondering why our government sells us once again down the river on jobs. Small businesses, especially small U.S. manufacturers are asking the same question.

Saturday Reads Around The Internets - Outsourcing Jobs and Tax Cuts

shocknews
Welcome to the weekly roundup of great articles, facts and figures. These are the weekly finds that made our eyes pop.

You may wonder why to create jobs, government doesn't just stop offshore outsourcing them? We sure do. With that, the theme of this week's links is offshore outsourcing.

 

Any Jobs Bill Must Have Buy American and Hire America Mandatory Requirements

arra signPaul Krugman shows the 2009 economic stimulus was not enough.  We've shown as have many others, tax cuts for the rich do not create jobs.   Yet, many criticized the $787 Billion Stimulus bill as spending, loaded with political favors and misdirected funds.  For example, 84% of the green jobs went offshore and build America bonds were yet another gift for Goldman Sachs.

The problem with the original stimulus wasn't that it wasn't big enough.  It was not smart enough.  What we need is true domestic stimulus.  If you're going to spend our money to stimulate our economy, stop shipping our dough to China instead.
buy american
Is this possible?  Can one stop the offshore outsourcing of jobs, especially jobs created with our hard earned taxpayer dollars?  Is there anything that can be done which actually goes to American workers?   Why yes there is.  First and foremost, all stimulus funding should have two mandatory requirements, Buy American and Hire America.  If a government is enacting Keynesian economic stimulus, they must keep that spending within the domestic economy they wish to stimulate.  The last thing America's workers need is stimulating China's economy and generating more jobs for them.

Can Financial Globalism Reverse?

Originally published in a collection of opinions on the question Is Financial Globalization Beginning A Process of Reversal? (pdf) The collection notes The European Banking Sector is 65% of all global banking.

Globalism is a conspiracy against First World jobs. It is the process by which capital extracts surplus and appropriates the earnings of labor. By moving offshore the production of goods and services for the home market, corporations benefit from labor arbitrage. Because of large excess supplies of labor, corporations can hire employees in China, India, Indonesia, and elsewhere at wages below the value of the marginal product of labor, thus raising the returns to capital.

 

cross capital flows gdp advanced emerging 2009
Source: OECD, Economic Outlook 2011

 

Tradable Jobs

The Council of Foreign Relations has released a new study with the benign title, The Evolving Structure of the American Economy and the Employment Challenge. Contained within are some horrifying statistics for American workers. From 1990 to 2008, all of the job growth was in non-tradable jobs. In other words, your suspicions are true, any job that could be offshore outsourced....was offshore outsourced. You were traded for a cheaper offshore counterpart.

Off Shoring Ruined Incomes and Jobs for Most Americans

By paul craig roberts
walmart1-Optimized.jpg

The free trade theory set out by David Ricardo at the beginning of the 19th century is merely a special case, not a general theory.

These are discouraging times, but once in a blue moon a bit of hope appears. I am pleased to report on the bit of hope delivered in March of 2011 by Michael Spence, a Nobel prize-winning economist, assisted by Sandile Hlatshwayo, a researcher at New York University. The two economists have taken a careful empirical look at jobs off-shoring and concluded that it has ruined the income and employment prospects for most Americans. (Image: fisserman)

To add to the amazement, their research report, "The Evolving Structure of the American Economy and the Employment Challenge,"was published by the very establishment Council on Foreign Relations.

For a decade I have warned that US corporations, pressed by Wall Street and large retailers such as Wal-Mart, to move offshore their production for US consumer markets, were simultaneously moving offshore US GDP, US tax base, US consumer income, and irreplaceable career opportunities for American citizens.

Government Finally Shows What We Already Know - Shipping Jobs Overseas is a Big Problem!

The BEA is finally giving us some interesting data in this BEA economic release, Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2009. Their statistics show U.S. multinationals fired more Americans than those abroad during this recession, even while some of these companies were bailed out by U.S. taxpayers. Additionally, these same corporations clearly have been offshore outsourcing jobs over the last decade.

 

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