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Outsourcing and America’s Nanny-Statism Bubble ^ | October 6th, 2005 | Eric Englund

Posted on 10/06/2005 7:51:21 AM PDT by Remember_Salamis

Outsourcing and America’s Nanny-Statism Bubble by Eric Englund

The consequences of publicly providing people gratis with services which would be of fundamental personal and moral importance if they had to provide them for themselves, are likely to be far-reaching indeed. When the government imposes its priorities it alters the balance of the choices which the individual can make for himself…His sense of responsibility for what he is not allowed to decide for himself is likely to diminish, and it is possible that he will be less concerned for his health and his children’s education than for his amusements.

~ H.B. Acton

When it comes to the emotionally-charged topic of outsourcing, academicians, politicians, public school teachers, media-types and other government worshipers are one-trick ponies (or more accurately, one-phrase parrots). They continuously chant the Marxist-tinted mantra that outsourcing is all about reducing labor costs by exploiting laborers in third-world countries. Reducing labor costs, undoubtedly, is a key factor behind outsourcing; yet, there is more to this story and you will not hear it from these government-worshipping folks as it would be tantamount to admitting a miserable failure on the part of the nanny state. Instead, obfuscation, name-calling, and finger-pointing – at those "fat-cat capitalists" – are the orders of the day.

The terrible truth is public high schools are "producing" graduates which manufacturers, hi-tech companies, and other technical businesses do not want to hire – certainly, there are exceptions. In fact, it is common for business owners to hold a generally negative view of workers, including white males, under 35 years old – after all public schools are churning out hedonistic individuals with high self-esteem, low skill levels, and no work ethic. Hence the poor product "manufactured" by our public schools is a key factor driving manufacturers, and technical businesses, overseas in search of quality labor. Of course, this aspect of the drive to outsource (i.e. a deteriorating labor pool) can be traced back to nanny statism as enabled by the Sixteenth Amendment and the Federal Reserve.

Poor parenting, undeniably, is part of the equation as well. The above-shown quote, from H.B. Acton, nicely summarizes how the welfare state negatively affects parenting.

As a surety bond underwriter, I have a wide variety of clients. My clientele includes general builders, mechanical contractors, electrical contractors, heavy engineering firms, steel erectors, stainless steel fabricators, other specialty trades, and various manufacturers. What I love about my job is that I deal directly with a firm’s owners. Surety credit, on balance, can be essential to a firm’s success and business owners take this credit relationship quite seriously.

When meeting with a client, I seek out a great deal of information in order to assess the risks associated with the particular client. In today’s marketplace, my customers are seeing significant price inflation (and, thus, risk) in steel, copper wiring, plumbing supplies, lumber, concrete, and oil-related products. If a contractor or a manufacturer fails to lock in prices of inputs, then profits can quickly evaporate. What I find most disturbing, however, is the common complaint that the quality of the labor pool is deteriorating.

My clients doing business in Idaho, Montana, Oregon, and Washington are acutely aware of the difficulty in finding skilled labor amongst those who are under 35 years of age. When touring building construction sites, the skilled laborers are typically late baby-boomers. For example, while taking a job-site tour with a client – who is the owner of a steel erection company – I detected that not a single one of his field employees was under 40. I passed along this observation to my client and he shook his head in disappointment. He stated something to the effect that "…America is becoming a country of baristas and real estate salesmen…all soft jobs. The ‘kids’ who come to work for me usually don’t last long because they don’t want to work hard, they can’t do any math in their heads and can’t even write a decent RFI." (An RFI is a request for information). The "lack-of-skills-and-work-ethic" complaint is a common theme I am hearing from the full spectrum of contractors, fabricators, and manufacturers. One of my customers, a tree-cutting contractor, summed it up perfectly and stated: "I don’t run a babysitting service and that’s why I typically hire guys my age or older." He’s 45.

Another disturbing aspect of the deteriorating labor pool pertains to drug use. A long-time client, based in Idaho, has a job-safety program which includes drug testing for job applicants. Fully one-third of applicants fail the drug test. Such failures are disproportionately skewed towards laborers under 30 years old. It is important to note this general building contractor (which self-performs structural-concrete work) is not turning away people who are merely applying for low-wage work. This contractor pays top-dollar for skilled structural-concrete workers.

Keeping the aforementioned Idaho contractor in mind, I had a most enjoyable job-site visit pertaining to a new 5-story parking garage this firm was building. Not surprisingly, the rebar and concrete crews were made up of seasoned men, earning a high wage, with few under 30 years of age. After the site visit, we walked to a nice restaurant for lunch where the wait-staff was comprised of personnel in their early-to-mid-twenties. What a contrast from those working at the construction site, yet par for the course.

Businessmen do understand America’s public schools are wretched failures. Most, nevertheless, have not connected all of the dots in that our American republic has devolved into a social democracy. It is social democracy that changes the character of a people and always for the worse.

A few weeks ago, I had a breakfast meeting with a retired general contractor. Needless to say, I brought up the issue of the deteriorating labor pool. He, interestingly enough, mentioned how he had "…grown tired of having to baby-sit my crews." What he stated next was something I had never heard from a customer throughout my 20+ years in the surety industry. He said the following: "Eric, we have too much democracy in this country." I almost fell out of my chair. Our conversation immediately grew deeper and it proved to be one of the most stimulating discussions I have ever had with a businessman. This entrepreneur had given much thought as to how the ever-expanding nanny state has lead directly to the diminishing quality of the American labor pool. Naturally, I recommended that he purchase Hans-Hermann Hoppe’s masterpiece Democracy: The God That Failed. He could hardly wait to get home to order the book.

Dr. Hoppe’s book, among many things, provides an in-depth study as to the decivilizing nature of social democracy. Surely, this retired businessman would agree with Dr. Hoppe’s statement deducing nanny statism

…has led to permanently rising taxes, debts, and public employment. It has led to the destruction of the gold standard, unparalleled paper-money inflation, and increased protectionism and migration controls. Even the most fundamental private law provisions have been perverted by an unabating flood of legislation and regulation. Simultaneously, as regards civil society, the institutions of marriage and family have been increasingly weakened, the number of children has declined, and the rates of divorce, illegitimacy, single parenthood, singledom, and abortion have increased…In comparison to the nineteenth century, the cognitive prowess of the political and intellectual elites and the quality of public education have declined. And the rates of crime, structural unemployment, welfare dependency, parasitism, negligence, recklessness, incivility, pyschopathy, and hedonism have increased.

One could easily add "a declining work ethic and, hence, a weakening labor pool" into the mix. Is there any wonder why outsourcing is seen as vital to the survival of many American businesses?

Without the power to control the monetary system, and without the power to redistribute wealth, government would find it quite difficult to impose its priorities upon its citizens. In the United States, however, two important events occurred in 1913. First, the Sixteenth Amendment was ratified allowing the federal government to levy income taxes. Secondly, the Federal Reserve was established thereby wresting control over America’s monetary system. When combining the printing press with the power to levy income taxes, federal fantasies such as the New Deal, the Great Society, and public education can be financed for surprising lengths of time; thus fooling people into believing the state is a miraculous entity by which everyone can live at the expense of everyone else.

Alas, the miracle of the nanny state is built upon a mirage whereby a society can borrow its way into prosperity. The federal government’s debts and liabilities now add up to about $50 trillion. Moreover, due to the monetary manipulations of the Federal Reserve, Americans are lured into the false beliefs that savings are bad for the economy and that borrowing and spending lead to economic salvation. It is with this public-and-private-debt orgy that an illusion is created in which we can live comfortably by simply selling (to one another) real estate, stocks, bonds, lattes, and massages; while the rest of the world toils to manufacture products for our pleasure – isn’t it wonderful having the world’s reserve currency. Of course, this chimera is also being funded by capital built up by previous generations – sadly, Americans are now consuming instead of producing capital.

To be sure, debt and monetary inflation are fueling the nanny-statism bubble. With a welfare tab now standing at $50 trillion, it is no wonder why soft jobs and leisure are preferred by younger Americans. We have literally bred and "educated" the work ethic out of our children. With social democracy polluting and diluting America’s labor pool, businessmen are seeking higher quality (and not just cheaper) labor pools. Outsourcing is a logical and justifiable response to this unfolding tragedy in the United States.

October 6, 2005

Eric Englund [send him mail], who has an MBA from Boise State University, lives in the state of Oregon. He is the publisher of The Hyperinflation Survival Guide by Dr. Gerald Swanson. You are invited to visit his website.

Copyright © 2005 Eric Englund

TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Culture/Society; Foreign Affairs; Government; Miscellaneous; News/Current Events; Philosophy; Political Humor/Cartoons; Politics/Elections; Your Opinion/Questions
KEYWORDS: immigration; outsourcing; unemployment; welfare

1 posted on 10/06/2005 7:51:25 AM PDT by Remember_Salamis
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To: Remember_Salamis
Another disturbing aspect of the deteriorating labor pool pertains to drug use.

You mean the Nanny State hasn't fixed that yet?

2 posted on 10/06/2005 7:54:38 AM PDT by Wolfie
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To: Remember_Salamis
"We have literally bred and "educated" the work ethic out of our children."

If you have ever worked with young people, you have daily and dramatic reminders of this fact. We had a student assistant who all but went into tears when he was asked to do anything...even if you were only reminding him of work he was specifically hired and paid to do. He would never do anything unless he was asked at least two or three times. He NEVER had a full pay and would call off or call in late at least twice a week. Once, he called off about 40 minutes before the end of his 4 hour shift. He told me he passed up a temporary, summer job which would have paid him about triple what he made here just because they wanted him to get a hair cut. I asked him where it was, I would have taken it myself. I couldn't figure out if he was stupid or lazy, but I guess it was both.
3 posted on 10/06/2005 7:59:30 AM PDT by SMARTY ("Stay together, pay the soldiers and forget everything else." Lucius Septimus Severus)
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To: Remember_Salamis

Does anyone outsource blue collar jobs ?

No. It is white collar jobs that are outsourced. And anyone who tells me that it is because American engineers and programmers are illiterate druggies is full of it.

4 posted on 10/06/2005 7:59:53 AM PDT by Sam the Sham (A conservative party tough on illegal immigration could carry California in 2008)
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To: Remember_Salamis

And as for this "deteriorating labor pool", any American with anything on the ball chooses to go to college. Over the past 30 years the economic lot of blue collar workers relative to white collar workers has worsenned. So what do you expect ? A steady brain drain from blue collar to white collar careers.

5 posted on 10/06/2005 8:02:33 AM PDT by Sam the Sham (A conservative party tough on illegal immigration could carry California in 2008)
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I'm in my mid-20s myself, but I'm active-duty military and working on my Graduate degree. Back in California, very few young people are entering trades. I worked consturction for a year after high school and I was the only "under 30 anglo" out there. The rest were, like he said, late baby-boomers and immigrants (not illegals).

6 posted on 10/06/2005 8:04:47 AM PDT by Remember_Salamis (A nation which can prefer disgrace to danger is prepared for a master, and deserves one!)
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To: Remember_Salamis

I am sorry to say that few young people know what 'man hours' are.

7 posted on 10/06/2005 8:10:36 AM PDT by SMARTY ("Stay together, pay the soldiers and forget everything else." Lucius Septimus Severus)
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I have hired young people and have had to send them home at the end of the day to keep overtime costs under control.

Not everyone from a public school is a drone nor do they lack essential skills. That said, there are plenty of slackers, but then, when I was growing up (pre-LBJ welfare state) there were plenty of slackers.

It was just that there were 10 or 12 folks looking for that one job and now the opposite is more true - many jobs and few (citizen) workers. So scut jobs tend to go begging.

Si, hablo espanol anyone? YMMV

8 posted on 10/06/2005 8:11:59 AM PDT by ASOC (Insert clever tagline here: _______)
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To: Sam the Sham

Does anyone outsource blue collar jobs ?

No. To the extent that they can cheep labor comes across the southern border. The effect is the same. The cheep labor takes home a small check, don’t pay taxes, sucks on the tit, we all go broke. But everybody has fast food and too much coffee, so they are happy.

9 posted on 10/06/2005 8:47:27 AM PDT by grayforkbeard (Precision weapons win battles. Bombing the whole country flat wins wars)
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I blame TV. (please don't laugh)

I think that TV has largely replaced the educational and informational system in America. And, I think, that this is not a good thing.

In looking around my office, for instance, I can quickly divide people into two groups - those that work hard, and those that don't.

The people that don't work hard are usually in a little after 8, and out well before 5. They're almost all under 30, they're single, or recently married (and/or divorced :-) ), and have few responsibilities at work and at home. Their discourse consists mostly of what TV shows - mostly, 'reality' TV shows - they've seen recently. For instance, "Ohmygod, did you see what so-and-so said on the such-and-such show last night? Did you vote for him?".

Those of us in the office that "work", sit blankly and listen with no frame of reference whatsoever. Speaking for myself, between work, family, and home, I don't have time to watch the latest TV - and I can actually feel the IQ points draining when I just see commercials for the latest reality TV shows. I keep up with current news events (*news*, not which celebrity is sleeping with which) online, and through FR. That's about it. I might catch a few minutes of the game (football, baseball, hockey) on TV, but that's all.

IMHO, I think that it would be awfully boring to only be able to discuss who wore what to the Oscars, or who was on on what TV show last night. Unfortunately, that's what passes for discourse in America today.

/rant off. And, as a side note, we just needed to let a new (young, single, etc etc etc) person go in our office today. She had to leave early on her 1st day (yesterday) and showed up late, with no phone call, on her second day (today). She was informed that her services would no longer be needed. She was upset, and looked pretty confused on her way out the door.

10 posted on 10/06/2005 9:45:42 AM PDT by wbill
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To: wbill
I worked in a place where a young new employee missed 3 days in the first two weeks of her employment came in late and left early on two occasions, and in the 3rd week took Wed through the following Mon off to attend her great aunt's funeral in another state. It got from bad to worse. I never saw anything like that. That girl had NO clue and what is more, how could anyone have hired her in the first place because she cannot have had any kind of a good work record to that point, unless she lied?
11 posted on 10/06/2005 9:55:22 AM PDT by SMARTY ("Stay together, pay the soldiers and forget everything else." Lucius Septimus Severus)
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To: Wolfie

Nanny state is needed by those in poverty who are there because they are lazy, druggies, permanently pregnant, never married, and have absent fathers.


Don't use illegal drugs
Don't have sex or get pregnant before you are married.
Don't get married before you are old enough and mature enough to be self-sufficient
Don't have more babies than you can afford to feed, clothe, an educate.

12 posted on 10/06/2005 10:54:07 AM PDT by buffyt (America will never seek a permission slip to defend the security of our people. Pres. George Bush)
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In your employee's case, I can understand time off for a funeral. The rest of the time, well....

In the girl at work here - leaving early the first day is not going to make a good impression, but in my head it's forgivable, particularly with advance notice. Heck, coming in late on day 2 is forgivable, with a phone call and an excuse (car trouble? it happens). But both, with no notice and no excuses....forget it.

Someone needs to teach a business etiquette class in H.S., and advanced business etiquette in college. What to wear, how to answer the phone, when to call, etc etc etc. It might help. Heck, just what to wear for an interview would help. I've had kids come in, in shorts, t-shirts, flip-flops, with ear/nose/facial rings, no haircuts, or all of the above Admittedly, it saves me time, in that I just give them a 'thanks but no thanks', but it's still frustrating. It boggles my mind that a person can come to a professional interview in a tank top, and wonder why they don't get hired.

13 posted on 10/07/2005 7:43:49 AM PDT by wbill
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To: Sam the Sham
Does anyone outsource blue collar jobs ? No. It is white collar jobs that are outsourced.

The textile industry, the clothing manufacturing industry and the furniture industry would not agree with your assessment. Actually, most jobs that have been moved offshore are in manufacturing.

14 posted on 10/07/2005 6:54:45 PM PDT by TaxRelief
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