TRUMP: "Outsourcing Creates Jobs in the Long Run"

The Trump Blog ^ | August 29, 2005 | Donald J. Trump

[Steelfish]

The Trump Blog Ideas & opinions from Donald Trump and the TrumpU faculty The Real Estate Investor Training Program

Outsourcing Creates Jobs in the Long Run

by Donald J. Trump Chairman, Trump University

We hear terrible things about outsourcing jobs--how sending work outside of our companies is contributing to the demise of American businesses. But in this instance I have to take the unpopular stance that it is not always a terrible thing.

I understand that outsourcing means that employees lose jobs. Because work is often outsourced to other countries, it means Americans lose jobs. In other cases, nonunion employees get the work. Losing jobs is never a good thing, but we have to look at the bigger picture.

Last year, Nobel Prize-winning economist Dr. Lawrence R. Klein, the founder of Wharton Econometric Forecasting Associates, co-authored a study that showed how global outsourcing actually creates more jobs and increases wages, at least for IT workers. The study found that outsourcing helped companies be more competitive and more productive. That means they make more money, which means they funnel more into the economy, thereby, creating more jobs.

I know that doesn't make it any easier for people whose jobs have been outsourced overseas, but if a company's only means of survival is by farming jobs outside its walls, then sometimes it's a necessary step. The other option might be to close its doors for good.

[Aliska]

They were talking about Abbot Laboratories on talk radio this afternoon. Abbot was located in Chicago, but one plant was in Waukegan, IL. My aunt's neighbor lady's husband had a good job there, may be retired by now.

I don't know this source but it sources back to the Chicago Tribune:

Abbott Laboratories fires 180 IT workers, replaces them with H-1B, L-1 visa workers from Wipro

Like Disney and many before them, let Americans go and make them train H1B workers for their jobs. Fire them and give them severance pay. They were saying they have to sign a non-disclosure to get their severance, can't talk publicly about it.

It sucks.

[BlackAdderess]

Well, actually I’m in the process of retraining now, and as I understand it people over a certain age are persona non grata no matter how well they kick the ass of the rest of their graduating class!

[JBW1949]

Yeah, you’re right...I’m 67 years old...It’s been a long time since I herd any fairy tales, other than from democrats...
Sorry about that......

[HarleyLady27]

Maybe the ‘outsourcing’ of jobs means:

Instead of a cement company in New York is x amount of dollars for a yard of cement could be cheaper if it's ‘outsourced’ to another company that could drop the amount of cost for the same yard of cement....

Sometimes you have to know how a business works before you make a decision of what the person is talking about...

In my business, for an example, during the rush of the holidays I will ‘outsource’ my projects to other people, and pay them the money I would make for them doing the work for me, it serves the customer, and it helps me, and it's economical to do it this way....

[JBW1949]

OK...LOL...

[Aliska]

And while we are on this subject, has anybody noticed how expensive sheets are these days? I buy them used because the new ones made wherever, not here, our mills were closed down years ago, are way too expensive.

I don't see how it was a good idea to destroy all those jobs either. They used to make really nice-quality cotton fabrics, towels. I don't sew any more but I did get some fairly decent fabric for curtains on ebay.

Singer sewing machines are dirt cheap; I need a new one but am in no hurry.

[Blue Collar Christian]

Yeah. All those folks who used to work in manufacturing at two to 4 times minimum wage can easily find a job where the chinese products have come to our shelves, Walmart, with a good chance of advancement to 1.5X minimum wage.

A bit too much spin to swallow I’m afraid.

[TigersEye]

Do you still look at things the same way you did eleven years ago???

To answer your question; my values and principles haven't changed in the last eleven years.

[BlackAdderess]

You can pick up an old touch and sew, made of American steel, in America for $20

[grey_whiskers]

Traitors like you should be outsourced.

[mtrott]

I got laid off from a pharma sales job after 27 years in 2011. I was retired for 1.5 years, then decided to try to get back into pharma sales, and let me tell you, when you are pushing 60, it was like playing the devil to get hired. They are not looking for somebody pushing 60, but rather for good looking 35 years olds! I eventually did get hired and have been with my current company for almost 3 years.

[BlackAdderess]

Well, I did what was marketable before, but it seems I have a couple of paths now. I’m opting to hang out my own shingle since I won’t fire myself for being too old ;)

[bolobaby]

You sir, are an ignoramus. When you have an idea to grow the business that will cost you $X, and you only have $X to spend, but doing it domestically would cost $2X, your choice would be to NOT grow the business.

Hint: Once the business has grown, you create domestic FTEs, so make the investment and grow the business.

It’s a leading edge spend. Seeing as you think wealth generation and business growth is traitorous, I’ll assume you are a Bernie Sanders voter and leave it at that.

[bolobaby]

You sir, are an ignoramus. When you have an idea to grow the business that will cost you $X, and you only have $X to spend, but doing it domestically would cost $2X, your choice would be to NOT grow the business.

Hint: Once the business has grown, you create domestic FTEs, so make the investment and grow the business.

It’s a leading edge spend. Seeing as you think wealth generation and business growth is traitorous, I’ll assume you are a Bernie Sanders voter and leave it at that.

[SeaHawkFan]

We’re going to hear about this tomorrow night.

[SeaHawkFan]

With the Trumpbots, there’s always an excuse when Trump says one thing and is caught doing the exact opposite.

[HarleyLady27]

We supporters have our man’s back all the time, never forget that!!!

[gg188]

Cruz wants (at last count, in 2013, when he was supporting the Gang of 8 bill) 500,000 ADDITIONAL H1-B visas-—these are the STEM jobs, the “good jobs”, business professionals, computers, engineering. But the kicker is that with TPA, which Cruz voted for, signatories of our trade agreements’s WORKERS get unfettered, UNCAPPED access to the U.S. and ALL of its jobs. TPP will bring in enough Indians to take every STEM and “good” job left in the USA. While crony corporations are figuring out how to export the jobs to Bangalore and other places overseas.

[saywhatagain]

" You know what Rush's problem is? He's part of the fricking problem. He's so into globalism that he can't even see that his statements are selling out America and Americans. . . . DouglasKC

Hmmmmm . . . selective memory? eh?

Truth of the matter its not always black and white. Alot of grey in the arena of ideas and policies. But it appears it only matters to you . . . who says it!

[grey_whiskers]

When you outsource, you develop a whole slew of hidden costs, which do not show up on the line-items used by MBAs when distributing bonuses to managers.

The vaunted "work 24x7 in multiple timezones" usually fails, because the idiot in the Third World country has zero initiative or creativity, so if he has any questions he twiddles his thumbs until the end of his shift when he fires off an email asking for clarification. If you're *lucky* the American tasked to answer it, can read between the lines enough to do the Third Worlder's job for them without it actually showing...if you're unlucky you waste 2-3 days going back and forth.

This plays hob with schedules.

The compression of schedules can come out of QA (which it usually does, since nobody in management has the intelligence or competence to ask the proper questions of developers). The result? Shoddily written product which is sparsely tested.

You have wear-and-tear on employees who are expected to come in early or stay late in the vain hope of catching one end or the other of the offshore developers' shift.

You have people who have to write specs in nauseatingly unnecessary detail, so that that Third World "world class EXPERTS" can follow the instructions to the *letter* for every possible contingency.

You have the problems of knowledge loss by high turnover in the offshore resources; intellectual property theft; and higher overhead caused by management having to hold their hands all the time, often with site visits to put the heat on them.

Then you have the problem that for all their arrogance, when someone from a non-Western culture screws up, their culture is "shame-based" meaning they will first lie through their teeth, then feign language/communication barriers, then hint at discrimination, rather then admitting in a timely fashion they screwed up and not only fixing it, but doing a deep dive analysis to find the root causes and fix the process.