Why We Have Nothing to Fear from Foreign Outsourcing

Free Trade Bulletin, Center for Trade Policy Studies, CATO Institute ^ | March 30, 2004 | Daniel T. Griswold

[E. Pluribus Unum]

Again HOW can American career people compete with someone in another country who has a lower pay standard than here?

You didn't read the article, did you?

The crash in IT jobs was a direct result of the dot-bomb scams of the late 1990s, where companies would acquire some venture capital, hire a bunch of people, issue an IPO and cash out filthy rich before the company had ever generated one penny of profit.

We have been paying for these scams ever since.

The IT industry has finally reached the point where sustainable employment levels are going to rise.

IT has ALWAYS been cyclical. There is nothing new here except to people short in memory or years.

[CSM]

Interesting. The price remained constant, while the continual cost increases drove these companies to look for a way to reduce cost. Must have been a profitability thing, just think, they could have been heroes if they stayed in the US and went bankrupt!

[TXBSAFH]

Please read post # 34. Your comments? Thank you.

[CSM]

There is no displaced worker as a result of these actions. Instead, poor management of a process will result in job losses.

[TXBSAFH]

I did some research this morning. The company that makes dewats were profitable in the US. They were not in danger of going out of business if they did not move.

[Wolfie]

Sounds like a quality of workmanship issue. Of course, you get what you pay for!

[mommybain]

Whatever. I'm just telling you the world I'm living in right now.

On the bright side, it's now taking 2 people (1 American / 1 Indian) to do what 1 person (American) used to do, so I guess that helps our economy in the long run, doesn't it?

[cyborg]

My mother remarked that cheaper goods end up being more expensive than a high quality product (American made). She remembers coming to this country when Ideal Toys was still in business. How many toys are still made in this country? Not many I'm sure.

[CSM]

Because of all the crying by the protectionists. They want the government to take further actions to make sure that they have a job, in the field they want, for as long as they want and for a high wage. At the same time they want to buy cheap goods.

The government will do nothing but grow, otherwise they would cease to exist.......

S-OX is a direct result of the government protecting the "common" worker from further Enron scandals. It just adds compliance costs and still doesn't ensure anyone's 401K against bankruptcy. But the poeple feel safe!

[TXBSAFH]

I am in IT, but I am the son of a carpenter and in my younger days worked in the building trades. I will only buy tools that or of top quality. I was laid off for 4 months in 2002 and had to hassle some fences and decks until I found a new position. You may pay a little more up front but they last longer and work better in the long run. I have switched my buying to Milwakki(SP?) and porter cable.

[TXBSAFH]

Jobs go to a foreign country, quality of goods go down the toilet, price to the consumer stays the same. Free trade is shaping up to be a total pants downer for the middle class.

[Wolfie]

Look, quit your whining. Free Trade is working just fine for the people its supposed to work for: Namely, our political masters and their big campaign contributors.

[TXBSAFH]

That is why I am against it.

[CSM]

Let me guess, they moved operations in 2001, when they had a 2% ROS and the next year they ended up with a 4% ROS. Neither is all that great, but I am looking for more financial information.

[CSM]

"Jobs go to a foreign country, quality of goods go down the toilet, price to the consumer stays the same."

Tell that to anyone buying a car today. Off shore competition is the main reason we have relatively good quality cars to chose from.

[TXBSAFH]

In this case the quality is way down and they by their act have lost a customer.

[tiamat]

Remember what Benjamin Disraeli said:

"There's Lies, Damned Lies, and then there's Statistics".

I don't think you are wrong in your opinion about out-sourcing, either.

Just how many times is a person supposed to go back to school to start over?

I know white males in their 50's who have started over three or four times now. Their standards of living have declined rapidly as well.

I'm not talking call-center jobs either. I'm talking white collar, upper-middle class positions that require a Master's Degree at least, and possibly a doctorate.

Corporations demand loyalty and 60 hours or more per week, and yet corporations are awfully quick to bolt if they think they can get some guy overseas for 700 bucks a month. Whether the quality is there or NOT.

Most of the time, it's NOT



Out-sourcing is hurting us and anyone who says it isn't is living in a dream-world. ( Or worse. I try to think the best of people)



If Americans have the skills , Americans ought to be first in line for the jobs.

Some people here are awfully smug and think it CAN'T happen to THEM...

[cyborg]

It's a bit rough to be in IT right now. I think the IT industry is very different from the manufacturing industry. I could be wrong though.

[TXBSAFH]

Hear, Hear!!!

[TXBSAFH]

It is rough, I knowof soem who are making 60, 70 cents on the dollar of what they were making two years ago. And they feel lucky to have gotten it.