One of the enduring arguments of the "free" traders has been that the reason why factory workers and others who lost their jobs to outsourcing was that they lacked the proper education. Now putting aside the evidence to the contrary found in the many unemployed factory workers who used the money the government gave them to get an education to learn how to program computers in the late 1990s only to watch those jobs shift overseas. Today we have evidence that yet another class of workers who were presumed (and often they bought it) to be exempt from having their jobs outsourced are losing their jobs to.
Wall Street banks started cautiously sending research jobs to India a few years ago, hiring employees by the handful and running pilot programs with firms like Copal, Office Tiger, Pipal Research and Tata Consultancy Services.
In 2003, JPMorgan and Morgan Stanley said they planned to move a few dozen research jobs to Mumbai, Lehman Brothers was working on a pilot program to create research presentations in India and both Merrill Lynch and Goldman Sachs said they had not moved any research to the country.
Five years later, the trickle is a flood. Third-party firms say they are seeing a 20 to 40 percent upswing in business this year alone. .....
Theoretically, as much as 40 percent of the research-related jobs on Wall Street, tens of thousands of jobs, could be sent off-shore, said Deloitte’s Mr. Power, though the reality will be less than that.
Forgive me for feeling more than a little schaudenfraude in this.
In the future, executives in India like to joke, the only function for highly paid bankers in New York or London will be to greet clients and shake hands when the deals close.
“Wall Street has to look at the world differently,” said Manoj Jain, the chairman of Pipal Research, a 400-person firm with offices in Chicago, Delhi and Gurgaon. Moving high-value jobs out of high-cost cities is “no longer a hypothesis,” he said.
It sure looks like our friends on Wall Street are about to learn that what comes around goes around, and forgive me if my sympathy for their loss is offset somewhat by the role that they played in making this happen for millions of other American workers before their ticket got punched.
The time has come for American to adopt a program of national political economy that focuses on returning our economic infrastructure to hands that put America first, and don't flinch when called open to do their civic duty, pay their taxes, and play by the rules.
These Wall Street guys like to pretend that some higher power, the market's "invisible hand" , is at work here, but the truth of it is that the folks who are making economic decisions in this country chafe at the prospect of being subject to the demands of a democratic political system in which the medium of influence is votes not money. And in which all are equal before the law. They are economic royalists.
And it looks like their ranks are going to grow a bit smaller because the big boys have decided that they can get away with screwing their white collar workers over.