Powell Reassures India on Technology Jobs

New York Times ^ | March 17, 2004 | STEVEN R. WEISMAN

[MannyP]

Powell Reassures India on Technology Jobs By STEVEN R. WEISMAN

Published: March 17, 2004

EW DELHI, March 16 — Secretary of State Colin L. Powell, encountering the other side of a tempestuous debate in the United States, sought to assure Indians on Tuesday that the Bush administration would not try to halt the outsourcing of high-technology jobs to their country.

Advertisement

In discussions with Indian leaders and college students, Mr. Powell found that the issue of the transfer of American jobs to India by leading technology companies was as emotional in India as in the United States.

But whereas American politicians have deplored the loss of such jobs, it was clear that the anxiety in India focuses on threats by some members of Congress to try to stop the transfer by legislation.

Responding to a questioner in a session with students who asked if he supported or opposed outsourcing, Mr. Powell said: "Outsourcing is a natural effect of the global economic system and the rise of the Internet and broadband communications. You're not going to eliminate outsourcing; but, at the same time, when you outsource jobs it becomes a political issue in anybody's country."

Mr. Powell told the students what he had said to reporters earlier in the day after a meeting with Foreign Minister Yaswant Sinha: an appropriate American response to outsourcing was to press India to open up to imports of American investments, goods and services.

He said one purpose of his trip was to explain to India that because outsourcing had created a political problem in the United States, India could help by lowering its trade barriers. He said he was making that request, not as a condition for the United States allowing outsourcing to continue, but because it was in India's interest to be more open.

In February, Gregory Mankiw, chairman of the White House Council of Economic Advisers, stirred a political outcry when he called the outsourcing of jobs a long-term "plus" for the economy. While Mr. Powell said Tuesday that "it is the reality of 21st century economics that these kinds of dislocations will take place," he was quick to add that the Bush administration would work to train people for new jobs.

In Washington, the White House endorsed Mr. Powell's comments.

"The secretary made clear in his remarks that we are concerned when Americans lose jobs, and we are focused on creating jobs for American workers, and the best way to do that is to open markets around the world, including in India," said Claire Buchan, a spokeswoman for the White House.

But David Wade, a spokesman for Senator John Kerry, the presumptive Democratic presidential nominee, said Mr. Powell's comments demonstrated how the Bush administration has "failed to fight for American workers."

[Euro-American Scum]

Mr. Powell told the students what he had said to reporters earlier in the day after a meeting with Foreign Minister Yaswant Sinha: an appropriate American response to outsourcing was to press India to open up to imports of American investments, goods and services.

Alert! Alert! Flying pigs coming over any second now!

[Iris7]

I do agree with your analysis in all respects. A people will not act prudently except after hard knocks. Sense is most uncommon and resisted until after exhaustion sets in!

I am very impressed by Mr. Putin.

However, as far as Nietzsche goes, he was delusional. Tertiary syphilis and probably manic-depressive.

"That which does not kill me makes me stronger." Insane.

[swampfox98]

What does not destroy me, makes me stronger."

Not always. swampfox98

[WilliamofCarmichael]

One of things that outrages me is the corrupt government of Mexico meddling in our internal affairs -- well guess what? Mexico is not the only one.

The US India Political Action Committee describes itself thus, "USINPAC’s mission is to ensure that we impact policy on issues of concern to the Indian American community." So how does sending Indian "American" community's jobs off shore benefit Indian "Americans?"

One of the main issues that USINPAC wants to "impact" is this, Prevent any protectionist legislation on IT outsourcing at the Federal level.

it was clear that the anxiety in India focuses on threats by some members of Congress to try to stop the transfer by legislation.

Not to worry. USINPAC virtually owns the House. To wit, the Caucus on India and Indian "Americans" (either you are an American or you ain't IMO) in the US House of Representatives has, I believe, close to two hundred India lackeys being paid and in for a lifetime of luxury retirement living courtesy of U.S. taxpayers. Let them retire on the living standards of the country they serve, India.

[WilliamofCarmichael]

What does sending our technology, manufacturing, and IT-enabled services off shore and importing those goods and services have to do with "the Global Economy?" It's jobs chasing cheap labor. Fine. But call it what it is, please.

Transferring wealth to "developing countries" is a Kyoto objective but "free" trade is beating the leftist swine vomit, enviro-wacko watermellons to the punch.

Well I guess that until these jobs start dragging middle and upper management jobs along with them we'll just have to watch this mild form of pump and dump (i.e., short term economic advantage for corporate officers' stock options) at work.

Lower the hurdles of government regs? Free traders tell us all the time that we benefit from Japan and Europe offshoring to us. They do okay, I guess. Why can't our own corporations handle it? BTW I agree with you about government regs being a problem. I'm just wondering how Japan and European countries handle the regs.

[WRhine]

Not to worry. USINPAC virtually owns the House. To wit, the Caucus on India and Indian "Americans" (either you are an American or you ain't IMO) in the US House of Representatives has, I believe, close to two hundred India lackeys being paid and in for a lifetime of luxury retirement living courtesy of U.S. taxpayers. Let them retire on the living standards of the country they serve, India.

Isn't that Mind Blowing? Does it get much worse than this?

I really can't think of anything more treasonous than our government allowing Foreign Nations to directly insert themselves into OUR governmental process and legally buy-off OUR elected representatives.

Who are the Traitors that allowed this to happen?

If this is not Treason, what is?

America is long past due for a revolution. It's more than clear that our government no longer serves the "Will of the American People". It's a wholly owned captive of special interests and foreign powers that legislates laws according to the Highest Bidder.

[WilliamofCarmichael]

RE: They [India] then make money and BUY our products.

If India is buying all this stuff from us would someone please tell U.S. Trade Representative Robert Zoellick. Please. He's upsetting our dear friends. To wit, this recent article, "An Open Market And An Open Society" by SANJAYA BARU"

http://www.financialexpress.com/fe_full_story.php?content_id=55035

You see, Mr. Zoellick alleged that India is among the world’s most closed economies.

[ninenot]

Dunno about Japan--but the Germans are building plants/hiring over here in the US. Regs there are FAR worse than in US.

Same, to a lesser extent, with England, which is buying industrial assets over here by the fistful---also same with Scandanavian firms.

In effect, the labor arbitrage begins in Northern Europe, hops here, then to Mexico, then to China/India.

Ain't it nice to know that we are merely a way-station?

[ninenot]

Radio-Head forgot to tell us: the Indians will buy all the American Luxury Cars and Three-Bedroom/Air-Conditioned Houses with their $12K/year salaries, just like the Chinese with their $5K/year incomes.

Didn't you hear? The Two Largest Consumer Markets In The Universe Await US Products If Only We Unemploy All Americans To Make It Happen?

Hell, that's the standard line from the Heritage Foundation, the American Standard, and the Wall Street Journal. You must be reading the wrong newspapers.

[oceanview]

I don't really see that is has slowed down at all. Maybe the layoffs have slowed, but these large companies like IBM and the big telcos have plenty of employees that are retiring - and they aren't replacing them with US workers, all the growth is offshore.

[WilliamofCarmichael]

RE: To all of the isolationists economically...go ahead and add legislation to "your jobs"

There's no google on talk radio. The fastest and loudest mouth wins no matter how silly the epithets. Who said anything about wanting isolationism?

Like neutrino I am concerned about the "helluva deal" so-called developing nations are getting, especially China. Does that make me a racist?

Did you or anybody read CasearianDaoist in post #35? If he's wrong how about sone sources to prove it?

We can "carefully walk the path" and "protect ourselves" without becoming isolated. I've read all these threads and I do not recall any Freeper calling for closing off international trade. We are all commenting on truly free trade v. what many of us see today. See #35 for example.

To the best of my recollection there have been darn few who has asked government to save "their" jobs.

Some of us have asked that government not in any way assist in transferring technology and jobs offshore -- that's the only "help" we're looking for from government. To wit, stop helping the "capitalists" do it!

[Revolting cat!]

Secretary of State Colin L. Powell, encountering the other side of a tempestuous debate in the United States, sought to assure Indians

So Colon Bowel seeks to assure Native, uhm, let's see, the Native Asians, that the gravy train will keep chugging, while he, the administration and their various Fiorinas cheerfully inform the natives of their own country "tough shiite"?! Boggles the mind, don't it?

The irony of this situation can be seen among the cat's Indian IT co-slaves, green cards, not H1B's, as far as I know, who are beginning to shake under their turbans and saris, afraid that their own jobs might end up being outsourced to, gasp, India!

[WilliamofCarmichael]

RE: The idea that we should build up those economies until they get to a point to equal ours to even out trade will do nothing but bleed the country dry. In building their economy up, we are losing some of ours. This sort of thinking usually has conservatives screaming when demonstrated as redistribution of wealth in this country; i.e. welfare, etc.

This sort of thinking usually has conservatives screaming when demonstrated as redistribution of wealth in this country; i.e. welfare, etc.

"Free" traders are too busy calling us isolationists and worse to understand that's how many of us see their "free" trade.

If it weren't for googling I guess I'd have to admit all their talk of emerging capitalists and markets for U.S. goods were true. I'm still open to their googling results to prove what they say but. . . .

[WilliamofCarmichael]

RE: Who are the Traitors that allowed this to happen?

USINPAC is at www.usinpac.com/

I recall seeing the list on their site but another source is

http://www.outsourcecongress.org:81/rep/indiapac/

I like the sound of their name, http://www.outsourcecongress.org

Constitutional officers representing a foreign government. My, my.

You understand of course, ostensibly they are representing Indian "Americans." But why would citizens want to ship their jobs off shore? Go figure.

[RFT1]

Where do you find this stuff? Economic theory is one thing, political reality is quite another. Bush at the very least should shut up on this issue till after the election, "Free Trade" is not a popular issue, it is a highly emotional issues, a issue t hat WILL cut against Bush.

In any event, a lack of balance on trade will further distort the economy, meaning the upper reaches of society get most of the benifit while a large majority does not. The longer this goes on, the greater the chance the US will become a European style "Social Democracy".

I do not know what it is with you "Conservative" talk radio hosts such as yourself, Tom Sullivan, Limbuagh and Beck, but dig deeper into economics other than reading the WSJ editorials.

[WRhine]

Thanks for info William.

I like the sound of their name, http://www.outsourcecongress.org

LOL. I think they have been pretty successful at that. If only we can outsource the players.

[Euro-American Scum]

I don't really see that is has slowed down at all. Maybe the layoffs have slowed, but these large companies like IBM and the big telcos have plenty of employees that are retiring - and they aren't replacing them with US workers, all the growth is offshore.

Point taken. But these companies are not as blatantly overt about the whole thing as they used to be. And I believe this to be a direct consequence of their desire to see GWB back in the White House. The replacement of retirees with offshore labor is a case in point. Nobody is fired. No attention is drawn to the process. The people go away. The jobs go away. No muss. No fuss.

With Bush firmly re-elected, and not subject to any more re-election restraints, the avalanche will pick up unabated. I also expect to see further restrictions on free speech, of which CFR was only a foretaste. And kiss the Second Amendment goodbye.

Those on a one-way ticket to poverty will not be allowed access to firearms. Of course, they won't be able to afford them so it will ultimately be a moot point.

[phil_will1]

"While it's probably not fair to state that the consumption tax would be a net POSITIVE for jobs in the USA, it's not likely to hurt them."

Its more than fair to state that a consumption tax would have a net positive impact on US jobs - in fact, its an understatement.

1. Reducing the prices of exports (while maintaining comparable profit margins) by 20 - 30% would significantly impact the demand for our goods in foreign markets.
2. US produced goods would stay about the same in price on an after-tax basis, but imports would increase significantly. Once again, the demand for US produced products in our own country would be substantially greater than it is now.

In addition to price shifts which would significantly increase the demand for US produced goods, shifting to a consumption tax would save several hundred billion $$ per year in compliance costs. Talk about a boost to productivity! There isn't any policy initiative that the federal government could adopt which would have the economic stimulus impact of converting to a consumption tax.

[Fledermaus]

More fodder for the confused and stupid.

Now the new buzz word is "outsourcing"!

Next it will be "killing workers". You people should try opening an economics book and learning something.

[Fledermaus]

Don't waste your time. These Buchanan protectionists are just too f'ing stupid to understand basic reality.

They are the decendants of the whiners over the years that complained about lost jobs in coal mines and making horse carriages.

They have to be subsidized by government either with flat out welfare or laws to protect them from having to compete with others that aren't as stupid as they are. You know the types. They think they deserve to be paid $50K a year to put groceries in a bag. And then they unionize and complain if they get fired for constantly putting the bread in the bottom of the sack with canned goods on top.

It's pure socialism. All of a sudden, every idiot that decided to smoke pot and drink beer in high school and learn nothing thinks they have a right to other people's money so they can be subsidized for their laziness.

Whether they do it through the welfare system or government regulation, the results are the same.

They also have no clue how business works. If you are an American company and get in the Chinese market, it's called "outsourcing" if you open a place in China to manufacture or service that market. The way these idiots think, everything would be shipped. Talk about logistical nonsense.

But I'll also bet they think Budweiser brews all of their beer in St. Louis and ships it around the country and the world. But of course anyone with actual ability to use cognitive thought knows they have brewing facilities all over the U.S. and the world.

So I guess all the people of Missouri should be complaining Anheuser-Busch outsources jobs to New Hampshire and other states they brew in.