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To: HaveHadEnough
“But in both cases, the difficulty of finding a job is increased, no?”

No.

You get to read all the time about companies outsourcing jobs abroad. Do you often get to read about young startup companies that just started growing and is hiring people? Apparently not. Thats thats not because such a thing is no longer happening but rather because they are happening all the time and so isn't news. When big names in the industry outsource jobs thats big news. Cuz thats doesn't happen all too often, at least not as often as companies hiring people in large numbers.

If outsourcing had been a one way traffic for jobs with the kind of effect media and politicians have been projecting it, US exports would not have increased from $1.2 trillion to $1.4 trillion from 2005 to 2006, 13% increase in just one single year. Surely someone in the US is doing a job, making all that stuff going out for exports. More then a trillion dollar worth of exports! Its not being made out of vacuum by nobody.

What is visible about the issue of outsourcing is the aspect of job loss, whats not so visible is the capital gains thats reinvested back in the economy. You cant see it but its happening all the time. And America’s comparative advantage is not in labour but in capital. Capital gains provided through outsourcing is rejuvenating the economy.

In contrast “illegal immigration” is bringing in more labour surplus of low skilled variety (precisely the kind US doesn't need). In short run more low skilled labour will cost US more then any gains it may provide. In long run however the children of the “illegal immigration” may acquire education and may join the specialised (skilled) labour force, the kind of resource we actually need.

19 posted on 06/20/2007 8:45:33 AM PDT by Gengis Khan
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To: Gengis Khan
If outsourcing had been a one way traffic for jobs with the kind of effect media and politicians have been projecting it, US exports would not have increased from $1.2 trillion to $1.4 trillion from 2005 to 2006, 13% increase in just one single year.

False. The imports increased faster still. There are a rather large number of explanations which confound your simplistic conclusion. The simplest explanation is that those US exporters are merely incorporating their foreign-made components and re-exporting the final product...netting the "systems integration" business.

It is still a losing proposition. As the persistent two-to-one trade imbalance portends.

Plus, you fail to realize that there is nothing permanent about the continued increase in exports. It is reasonable to surmise that is instead merely an ephemeral kind of "last gasp." To wit:

This is usually a "one-trick pony" once the foreign components suppliers get sufficiently experienced to do their own final product assembly. The Korean car manufacturers are a perfect case in point. And now China, with its $10 billion in car parts shipped to General Motors in the U.S. alone...is on the verge of exporting cars to the U.S. Their ultimate intention is manifestly to eradicate our domestic car manufacturing capability...and how many times do we see Chinese expatriates lamenting that "their people" don't have cars...sigh.

Meanwhile, at the aerospace end of manufacturing, Boeing is outsourcing like crazy to try to stave off the mostly-subsidized Airbus "competition". The 787 will be primarily built around the world. It was a decision of desperation as much as inspiration. To date, it is clearly making headway. But that portends the very same "one trick pony" situation. Japan will have an immense advantage to do its own systems integration when it makes the wings...and essentially has a monopoly thereto.

More important than jobs alone...is our national independence. As Alexander Hamilton and George Washington taught us...or at least the better students...we need our independence at the cost of our treasure, blood and lives if need be.

23 posted on 06/20/2007 3:33:02 PM PDT by Paul Ross (Ronald Reagan-1987:"We are always willing to be trade partners but never trade patsies.")
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