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Outsourcing Isn't the Problem
Capitol Confidential ^ | 6/29/2012 | James Hohman

Posted on 07/02/2012 1:06:20 PM PDT by MichCapCon

Teamsters President James P. Hoffa writes in The Detroit News that the U.S. government should offer subsidies for companies to return outsourced jobs back to American soil. But buying back these jobs with tax money is unlikely to have any meaningful impact on the economy and be rife with special favors to Congressional cronies.

It won’t have a meaningful impact on the economy because — despite all the national attention given to the subject — outsourcing is rare in the United States. The entire country lost just 10,378 jobs to other countries from outsourcing in 2009. But jobs are being created and lost rapidly in this country as part of natural job churn. The nation lost 30.8 million jobs while gaining 25.3 million jobs during the same year. This means that outsourcing accounted for just 0.03 percent of job losses.

The economy moves more quickly than the demagoguery of labor unions.

The remarkably dynamic U.S. economy points to the problems faced by politicians when trying to subsidize winners at the expense of everyone else in the marketplace. Legislators should instead rescind special favors to unions, companies and all others in favor of policies that create a fair playing field.


TOPICS: Business/Economy
KEYWORDS: jobs

1 posted on 07/02/2012 1:06:31 PM PDT by MichCapCon
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To: Springman; Sioux-san; 70th Division; JPG; PGalt; DuncanWaring
Outsourcing is a problem but it certainly isn't the only one. Personally I think we need to eliminate the taxes imposed throughout the chain of manufacturing. Its like a hidden VAT tax where the manufacturer gets hit again and again and again.

If anyone wants to be added to the Michigan Cap Con ping list, let me know.
2 posted on 07/02/2012 1:10:55 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: MichCapCon
Outsourcing is the wrong term for this issue. Outsourcing is having a company contract with another company (perhaps next door) to do work previously done inhouse. Offshoring is only a very small sub-set of outsourcing since more than 90% of outsourcing is to other US companies.
3 posted on 07/02/2012 1:16:33 PM PDT by expat2
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To: MichCapCon
The entire country lost just 10,378 jobs to other countries from outsourcing in 2009

Why 2009? The nation was in the depths of a recessions and in no position to create jobs anywhere.

30+ years of trade inbalance will destroy any economy.

4 posted on 07/02/2012 1:19:52 PM PDT by Last Dakotan
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To: MichCapCon

Well if outsourcing isn’t offshoring jobs how come just about everything you buy is made somewhere else when it used to be made here?


5 posted on 07/02/2012 1:22:40 PM PDT by ex-snook (without forgivness there is no Christianity)
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To: MichCapCon

To what degree is crowd-sourcing and part time jobbing to blame?
Example:
Why hire a full time tech writer, just outsource it by the job to many different experts? You may eliminate the need for a full time position, with a manager doing some work posting tasks and editing. If the work is done by a housewife in the US or English doctorate in India isn’t known or matter, but a job has been “destroyed”, while the earned income generated is scattered across the globe.


6 posted on 07/02/2012 1:26:40 PM PDT by tbw2
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To: MichCapCon
But buying back these jobs with tax money is unlikely to have any meaningful impact on the economy and be rife with special favors to Congressional cronies.

Who cares, as long as the unions make out like bandits?

7 posted on 07/02/2012 1:33:09 PM PDT by E. Pluribus Unum (Government is the religion of the sociopath.)
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To: tbw2

Crowd-sourcing is the new buzzword, but nobody actually does it, because they’ve all read at least one Wikipedia article and they don’t want their stuff to look like that.


8 posted on 07/02/2012 1:38:18 PM PDT by discostu (Listen, do you smell something?)
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To: ex-snook

Back in the early 90s I worked in a bindery here in Michigan. Our boss (the owner) told us outright that the passage of NAFTA would close the doors on our small shop and he was absolutely correct.

Sure the company still exists in Michigan but all the small satellite shops like ours were shut down. The big main shop sent all the printing off to Mexico and closed the satellites that did the book binding and the binding went to the big shop while eliminating some 30% of the payroll.


9 posted on 07/02/2012 1:42:20 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: cripplecreek
"Back in the early 90s I worked in a bindery here in Michigan. Our boss (the owner) told us outright that the passage of NAFTA would close the doors on our small shop and he was absolutely correct."

Thanks for the facts on the ground. Perot heard that job sucking sound that Clinton-Bush-Obama-Romney refuse to hear. I'm looking to vote for someone who hears it. I don't wants to waste my vote on the job deaf.

10 posted on 07/02/2012 1:50:49 PM PDT by ex-snook (without forgivness there is no Christianity)
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To: MichCapCon
It won’t have a meaningful impact on the economy because — despite all the national attention given to the subject — outsourcing is rare in the United States. The entire country lost just 10,378 jobs to other countries from outsourcing in 2009.

Nearly all of them in manufacturing or I-T I would guess. I also think that number is probably low.

11 posted on 07/02/2012 1:59:17 PM PDT by Tallguy (It's all 'Fun and Games' until somebody loses an eye!)
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To: ex-snook

That boss was kind of an ass but he was an honest broker. It was a small shop and he was the grandson of the company founder. He used to sit in the break room when we had lunch so he could be sure we were watching Rush Limbaugh on TV back then.

He used to get a bug up his butt about politics and call us in for meetings to make sure that we understood the implications of political issues.


12 posted on 07/02/2012 2:12:20 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: MichCapCon

Simple answer:

The issue of “lost jobs” in the U.S. economy (and any economy) is an issue with many causes. In the U.S. outsourcing to other nations is not the largest nor the most permanent source of lost jobs. The largest cause is technology, and technological change - in every variety.

We didn’t hold technology back to stop the telegraph and preserve the Pony Express. We didn’t preserve the telegraph to stop the telephone. We didn’t preserve long-distance switchboards (and long distance operators) to prevent long-distance direct dial. We didn’t stop the cell phone, and we aren’t stopping VOIP (voice over Internet) communications to preserve telephone “land lines”.

And we are not stopping automation and the technological transformation of manufacturing, just to “save jobs”.

But, we are missing something, and it’s not jobs. It’s non-college education, training and preparation for skilled jobs in industry. We lack college grads in the sciences, that’s true. But we also lack the old traditional routes where young people not going to college could acquire the skills in “professional trades” and with them good skilled jobs in industry.

see: http://www.huffingtonpost.com/2011/10/12/us-manufacturers-skilled-workers-job-openings_n_1007902.html

From that article can be found some items that reflect the greatest source of “lost jobs” - change. And the greatest problem - lack of skills, for a changed workplace - not “outsourcing”.

” A survey by ManpowerGroup found that a record 52 percent of U.S. employers have difficulty filling critical positions within their organizations — up from 14 percent in 2010.”

“Most of the jobs hard to fill are for skilled trades, Internet technology, engineers, sales representatives and machine operators.”

“Unemployment in manufacturing is at 8.4 percent, below the overall rate of 9.1 percent. According to the Labor Department’s latest Job Openings and Labor Turnover survey, there were 240,000 open jobs in manufacturing in August up 38.7 percent from a year ago.”

“Medium-skilled repetitive tasks that can be computerized continue to disappear. First, it was from the factory floor, but it also affects the back office, where processing and support jobs are declining.”

“The old jobs are not coming back. We need to invest in education and training to get people prepared to fill these high-skilled, high-wage jobs of the future,” said Eric Spiegel, president and CEO of Siemens Corp.


13 posted on 07/02/2012 4:39:40 PM PDT by Wuli
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