Posted on 10/13/2004 9:16:36 AM PDT by xsysmgr
There has been a significant loss of high tech jobs due to outsourcing, specifically programming and technical support positions.
The article argues that dollars invested in India eventually return here, I think it's a very weak argument.
A programmer that made $85k before outsourcing really took off is apt to make $65k now -- if they can find a job. The fact that many can't find jobs for months at a time while laid off is a total drain on the economy. To spin this as cost savings which return to the US is ludicrous.
Both parties are wrong on this issue, but the Republicans are especially wrong by acting as if it's not a problem at all. Denial of the problem is hurting Republicans.
What's even worse is that there has been in increase in insourcing of manufacturing jobs, but the people in States like Ohio obviously are still peeved about the outsourcing of manufacturing jobs over the past decades.
So, while the real controversy here is service related outsourcing, the blue collars are taking this issue to heart and siding against Bush.
In a race that may come down to as little as 1/2 of a percentage point, every high tech vote is needed. It seems the Republicans don't think they need them. We'll see on election day.
Maybe you're right. I should lament that folks lose their jobs. Boy, I feel superior now.
QED
Of course it is.
Don't be ridiculous. Foreign Direct Investment simply means someone from outside the U.S. buys interest in a business here in the U.S. It doesn't necessarily mean that the foreign entity is starting a business here. It often means that their money is coming here, and they become the new owners, or part-owners of what was formerly a U.S.-owned company.
If they wanted to, the foreign direct investors could actually lay off workers, in order to make their new acquisition more profitable. So don't try pretending that Foreign Direct Investment equals insourcing, because you are distorting the issue.
FDI refers to an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor. Further, in cases of FDI, the investor´s purpose is to gain an effective voice in the management of the enterprise. The foreign entity or group of associated entities that makes the investment is termed the "direct investor". The unincorporated or incorporated enterprise-a branch or subsidiary, respectively, in which direct investment is made-is referred to as a "direct investment enterprise". Some degree of equity ownership is almost always considered to be associated with an effective voice in the management of an enterprise; the BPM5 suggests a threshold of 10 per cent of equity ownership to qualify an investor as a foreign direct investor.
At some point, one has to wonder if it is a uniformly good thing that most clothing is imported. Or that much of our manufactured merchandise is made in China (a likely military rival).
I'm not really taking a strong stand either way -- I'm just suggesting that Mr. Bartlett's take on outsourcing is incomplete, and therefore possibly misleading.
Please see #28. You might learn something.
By the way, if you plan on quoting me, can you try to use the full sentence, especially if the part you leave out is dispositive? Thanks in advance.
Those instances where FDI does not result in insourceing merely illustrate how disingenuous the insourcing cheerleaders actually are. With FDI already plummeting, and only a small portion being applied to new, job-creating investment, there is little insourcing actually occurring.
Ah yes, a neo-Keynesian. Small wonder protectionists worship the man.
Message:
To All American Voters,
I am a senior citizen. During the Clinton Administration I had an extremely good and well paying job. I took numerous vacations and had several vacation homes. Since President Bush took office, I have watched my entire life change for the worse.
I lost my job.
I lost my two sons in that terrible Iraqi War.
I lost my homes.
I lost my health insurance.
As a matter of fact I lost virtually everything and became homeless. Adding insult to injury, when the authorities found me living like an animal, instead of helping me, they arrested me. I will do anything that Senator Kerry wants to insure that a Democrat is back in the White House come next year. Bush has to go.
I just thought you would like to know how one senior citizen views the Bush Administration.
Thank you for taking time to read my letter.
Sincerely,
Saddam Hussein
If Toyota opens up a manufacturing plant in Tennessee, and hires 400 workers, that's insourcing.
But that's NOT Foreign Direct Investment, because Toyota is not taking an ownership position in an American company.
Tell it to the former employees of C&K Components who don't yet know their plants are closing as the company moves to China.
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