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Exporting Jobs
Capitalism Magazine ^ | August 19, 2003 | Walter Williams

Posted on 08/19/2003 10:13:15 AM PDT by luckydevi

Exporting Jobs by Walter Williams (August 19, 2003)

Summary: It'd make far more sense for Americans to start attacking the real sources that have contributed to making foreign operations more attractive to those at home. It's more effective than caving to the rhetoric of leftist and rightist interventionists who mislead us with slogans like, "How can any American worker compete with workers paid one and two dollars an hour?" when in reality our real competition is mostly with European workers earning a lot more.

[www.CapitalismMagazine.com]

Among George Orwell's insightful observations, there's one very worthy of attention: "But if thought corrupts language, language can also corrupt thought." Let's look at a few examples of corrupted language, thought and information.

Pretend you're a customs inspection agent. There's a cargo container awaiting a ship bound for foreign shores. You ask the shipper, who works for a big corporation, what's in the container. He answers, "It's a couple of thousand jobs that we're exporting overseas to a low-wage country."

What questions might you ask? How about, "What kind of jobs are in the container?" or, "Are they America's high-paying jobs?" Most people would probably say: "You're an idiot! You can't bundle up jobs and ship them overseas!"

A job is not a good or service; it can't be imported or exported. A job is an action, an act of doing a task. The next time a right- or left-wing politician or union leader talks about exporting jobs overseas, maybe we should ask him whether he thinks Congress should enact a law mandating U.S. Customs Service seizure of shipping containers filled with American jobs.

Let's turn to the next part of the exporting jobs nonsense, namely that corporations are driven solely by the prospect of low wages. Let's begin with a question: Is the bulk of U.S. corporation overseas investment, and hence employment of foreigners, in high-wage countries, or is it in low-wage countries?

The statistics for 1996 are: Out of total direct U.S. overseas investment of $796 billion, nearly $400 billion was made in Europe (England received 18 percent of it), next was Canada ($91 billion), then Asia ($140 billion), Middle East ($9 billion) and Africa ($7.6 billion). Foreign employment by U.S. corporations exhibited a similar pattern, with most workers hired in high-wage countries such as England, Germany and the Netherlands. Far fewer workers were hired in low-wage countries such as Thailand, Colombia and Philippines, the exception being Mexico.

The facts give a different story from the one we hear from the left-wing and right-wing anti-free trade movement. These demagogues would have us believe that U.S. corporations are rushing to exploit the cheap labor in places like the Democratic Republic of the Congo, Rwanda and Ethiopia. Surely with average wages in these countries as low as $10 per month, it would be a darn sight cheaper than locating in England, Germany and Canada, where average wages respectively are: $12, $17 and $16 an hour.

Let's look at a few of the reasons why some U.S. corporations choose to carry their operations overseas. Much of it can be summed up in a phrase: less predatory government and the absence of tort-lawyer extortion. While foreign governments can't be held guiltless of predation, their forms of predation might be cheaper to deal with than those of our EEOC, OSHA, EPA and IRS. Plus, tort lawyer extortion and harassment in foreign countries is a tiny fraction of ours. With each tort lawyer extortion and expansion of predatory regulations at federal, state or local levels of government, foreign operations become more attractive to U.S. corporations. Free trade helps make those costs explicit. American workers are just about the most productive in the world -- however, our government and legal establishment have reduced that productive advantage.

It'd make far more sense for Americans to start attacking the real sources that have contributed to making foreign operations more attractive to those at home. It's more effective than caving to the rhetoric of leftist and rightist interventionists who mislead us with slogans like, "How can any American worker compete with workers paid one and two dollars an hour?" when in reality our real competition is mostly with European workers earning a lot more.


TOPICS: Business/Economy
KEYWORDS: freetrade; walterwilliams
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To: Texas_Dawg; Tokhtamish
"Free trade" is exactly what caused the moral collaspe, and the collaspe is well established in all the poorer communities in this country.

This is really not very hard to understand. Families that can not afford to stay together split apart. Children are then mostly raised by a mother that mostly gets her money from men that mostly want to screw her. Mostly there is no Dad around cause if Dad is around then Uncle Suger Daddy (Uncle Sam) will not give she goodies like food stamps, welfare checks, eraned income tax credits, etc. Plus Dad is pretty much useless cause there ain't no jobs. And why are there no Jobs cause yall free traders sent them all over seas.

Hope this helps to explain things.

Jobs/work are a vital part of keeping a cmmunity moral and together. Without jobs, in one or two generations you have rampit drugs/prostitution/crime.

I know I live there.

There is a funy twist to things that I haven't figured out. These societies turn matrearcial (females lead) and men of means are reguarded the same as men of no means, which is to say not highly reguearded at all. The women develop characterists that are decidely male. Fighting, drinking, gambeling, chasing younger men. All very sad.

201 posted on 08/21/2003 7:56:52 AM PDT by jpsb
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To: jpsb
"Free trade" is exactly what caused the moral collaspe, and the collaspe is well established in all the poorer communities in this country.

So if "free trade" is what caused the moral collapse, why was there no moral collapse in the poorer communities in the 1930s (as you claim)?

202 posted on 08/21/2003 8:11:39 AM PDT by Texas_Dawg (I will not rest until every "little man" is destroyed.)
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To: Texas_Dawg; JNB
So if "free trade" is what caused the moral collapse, why was there no moral collapse in the poorer communities in the 1930s (as you claim)?

To a degree there most definitely was. "Dead End Kids" hinted at the problem, gangs and delinquency rising as the family structure breaks down. Remember the scene in "Gold Diggers of 1936" where Joan Blondell pleads that if Dick Powell backs out of financing the Broadway show they desparately need a lot of the chorus girls are going to be hooking ?

By 1940 things were sorting themselves out. In the booming wartime economy the damage was healed. It takes more than 10 years for a working class to sink to underclass level. But then again, that was in the context of the more Christian culture of pre-1965 America. Things move quicker now.

203 posted on 08/21/2003 8:22:07 AM PDT by Tokhtamish
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To: Texas_Dawg
Without jobs, in one or two generations you have rampit drugs/prostitution/crime.
204 posted on 08/21/2003 8:23:29 AM PDT by jpsb
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To: Tokhtamish
To a degree there most definitely was.

So which is it? Yesterday you were saying it was one of the most moral and church-going times in our nation. What was different about that period of extreme poverty than now (even though we really are much wealthier)?

205 posted on 08/21/2003 8:28:51 AM PDT by Texas_Dawg (I will not rest until every "little man" is destroyed.)
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To: jpsb
Without jobs, in one or two generations you have rampit drugs/prostitution/crime.

Great. Even if this is true, where are we without jobs? The unemployment rate, a lagging indicator, is 6.2%. Do you realize the rest of the world, including Europe, would love to have 6.2% unemployment right now?

I don't blame crime on poverty. That's what Democrats and Leftists do.

206 posted on 08/21/2003 8:31:01 AM PDT by Texas_Dawg (I will not rest until every "little man" is destroyed.)
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To: luckydevi
Article is Bullfeces. Walter takes the position that 'it depends on what a job is' is.

"A job is not a good or service; it can't be imported or exported."

Then he writes " Let's look at a few of the reasons why some U.S. corporations choose to carry their operations overseas.

Hey Walter 'operations' is what 'jobs' is.

207 posted on 08/21/2003 8:32:46 AM PDT by ex-snook (American jobs need BALANCED Trade. We buy from you. You buy from us.)
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To: Texas_Dawg
Just about all the males in my little town are unemployed and not one of them is counted in the government count. They haven't worked, other then cash handy man type jobs for the rich, in years and years and years.
208 posted on 08/21/2003 8:35:26 AM PDT by jpsb
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To: Texas_Dawg; jpsb; harpseal; JNB
Under the implact of continued joblessness even the most pious society will begin to disintegrate (and to drive through a black neighborhood is to see practically a church on every block). During the Depression you saw the beginnings of disintegration but that stopped when the economy recovered.

You appear to be reduced to petty carping.
209 posted on 08/21/2003 8:36:36 AM PDT by Tokhtamish
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To: jpsb
Just about all the males in my little town are unemployed and not one of them is counted in the government count. They haven't worked, other then cash handy man type jobs for the rich, in years and years and years.

Sounds like they should move to another town.

210 posted on 08/21/2003 8:41:22 AM PDT by Texas_Dawg (I will not rest until every "little man" is destroyed.)
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To: Texas_Dawg
The unemployment rate, a lagging indicator, is 6.2%. Do you realize the rest of the world, including Europe, would love to have 6.2% unemployment right now?

You need to remember that unemployment rate is counted differently in different countries. Also the safety net in Europe is different.

Comparing unemployment rate in US with that of France or Sweden is like comparing federal income tax with the total tax in those other countries. Makes you feel good.

211 posted on 08/21/2003 8:43:27 AM PDT by A. Pole
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To: A. Pole
You need to remember that unemployment rate is counted differently in different countries. Also the safety net in Europe is different.

Different meaning better?

212 posted on 08/21/2003 8:49:41 AM PDT by Texas_Dawg (I will not rest until every "little man" is destroyed.)
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To: A. Pole
Well, France and Germany have 10% unemployment and Poland has 20%
213 posted on 08/21/2003 8:51:16 AM PDT by Cronos (Reagan waz best, but Dubya's close!)
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To: A. Pole
Yes, and being unemployed in Europe means you still have good health care and other services. Being unemployed in a socialist or communist country is a way of life. It is one of the anticipated problems to their political systems.
In America, being unemployed for any length of time is devastating to a family and a community. We don't have the long list of "freebies" that socialist countries have, nor are we taxed to support them. High employment is vital to our way of life.
214 posted on 08/21/2003 8:53:23 AM PDT by LibertyAndJusticeForAll
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To: Texas_Dawg
You just don't get it do you? It ain't cool to work for the man. They don't want a job, cause nobody they know that's cool has a job, except "the old lady". It ok for the old lady to work, she just a woman.
215 posted on 08/21/2003 8:55:06 AM PDT by jpsb
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To: Cronos
10% is really what we have, not 6.2%.
216 posted on 08/21/2003 8:57:07 AM PDT by Tokhtamish
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To: jpsb
You just don't get it do you? It ain't cool to work for the man. They don't want a job, cause nobody they know that's cool has a job, except "the old lady". It ok for the old lady to work, she just a woman.

I guess I don't.

FR gives me great pride in my country though. Where else can people that are unemployed sit around and hang out on the internet all day and talk about jobs that they are above doing, yet complain about there being no jobs? Now that is one wealthy country. God bless America!

217 posted on 08/21/2003 8:58:48 AM PDT by Texas_Dawg (I will not rest until every "little man" is destroyed.)
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To: Tokhtamish
10% is really what we have, not 6.2%.

You forgot to mention we're all doomed.

218 posted on 08/21/2003 8:59:43 AM PDT by Texas_Dawg (I will not rest until every "little man" is destroyed.)
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To: Texas_Dawg
Slipping, slipping.
219 posted on 08/21/2003 9:05:33 AM PDT by Tokhtamish
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To: Cronos
Well, France and Germany have 10% unemployment and Poland has 20%

Such comparizons are very tricky. I know something about this 20% in Poland, but I will make no comment.

220 posted on 08/21/2003 9:09:55 AM PDT by A. Pole
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