Truth About Outsourcing

Discussion in 'Current Events' started by Bonnie, Oct 13, 2004.

  1. Bonnie
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    Bonnie Senior Member

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    www.townhall.com/columnists/brucebartlett/printbb20041012.shtml

    In August, economist Charles Schultze, chairman of the CEA under President Carter, looked at the number of jobs lost to outsourcing. He found that between the end of 2000 and the end of 2003, at most 215,000 jobs service sector jobs were lost. This is a miniscule amount in a working population of close to 150 million. Moreover, Schultze says, the productivity gains produced by outsourcing raised real incomes and living standards in the United States. He concluded that outsourcing cannot be blamed for the "jobless recovery."

    In July, economist Martin N.Baily, chairman of the council of Economic Advisors under President Clinton, loked at who benefits from outsourcing. he found that for every $1 spent by a U.S. corporation on outsourcing to India, only 33 cents stayed in India. The other 67 cents came back to the United States in the form of cost savings, new exports, and repatriated profits. However, productivity gains add another 45 cents to 47 cents of value to the U.S. economy. Thus in balance, the U.S. economy gains $1.12 to $1.14 for every $1 invested in outsourcing.
     
  2. MJDuncan1982
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    MJDuncan1982 Member

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    Outsourcing is pure capitalism. Advocates of a free market should be wild about his idea.

    However, just like any other principle, it is not absolute and needs to be reined in according to other factors (social good, greater economy).

    Hopefully, your stats are right and it is not a big problem.
     
  3. Bonnie
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    Bonnie Senior Member

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    Its just like anything, you take the good with bad, in this case if these numbers are correct there is mostly good to be gained. It just goes back to freedom, the market, and people's will to succeed. True there are some jobs lost, but I think the jist of this is that the numbers are miniscule and can be easily absorbed by our economy. I harken back to what Jack Kemp said "a rising tide lifts all ships"
     
  4. fuzzykitten99
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    fuzzykitten99 Senior Member

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    so true. besides, HOW is it Bush's job to create jobs? How does he even do this? Does he pull them out of his magic hat? His ass? the liberals keep saying it's Bush's fault, and that Kerry will create jobs. What, create govrenment jobs? then how are we supposed to pay for them? Oh, that's right...Kerry is going to raise taxes. But only on the so-called wealthy. He and Heinz will only pay their whopping 12.8% while the rest of the "wealthy" citizens pay more. Sounds REALLY fair to me. :bat:
     
  5. 5stringJeff
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    5stringJeff Senior Member

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    A free market creates more wealth for all participants; therefore, it is a "social good." Or are you talking about "social programs?"
     
  6. Bonnie
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    Bonnie Senior Member

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    I had a conversation with someone who once told me Clinton created jobs, I asked how, and he said "by adding more cops to the payroll" . That sounds good, how many jobs did that create? " About 150,000 jobs" he said. "Okay so what about the other 5 or so million, are they going to be cops as well?"
     
  7. sitarro
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    sitarro Gold Member Supporting Member

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    I guess that according to Kerry , Toyota should take their outsourcing of car and truck manufacturing back to Japan. The story below tells about the new Tundra production plant that is being built in San Antonio , Texas . This city was devistated by Clinton's closing of 3 bases and downsizing of 2 more . They don't have any problem what so ever with Toyota's decision to spend 800 million building a plant and employing over 2000 Americans .The idea of outsourcing is a two way street .

    "Toyota is proud to be building a new $800 million vehicle assembly plant in San Antonio, Texas. This new plant will be Toyota's sixth North American assembly plant. As the fourth-largest automaker in America, Toyota is committed to expanding our U.S. manufacturing operations, and we're thrilled to add San Antonio to the worldwide family of communities where quality Toyota products are built using many U.S. parts. The site will produce 150,000 Tundra full size trucks. The start of production will be in 2006. The facility will employ approximately 2000 people including salaried and hourly positions.

    Plant Size

    2000-acre site in San Antonio

    Investment

    $800 million

    Employment

    2000 new jobs plus indirectly the creation of many more

    Products

    Tundra full size trucks

    Operations

    Stamping, body weld, paint, plastics and assembly

    Start of production

    2006

    Annual Production Capacity

    150,000 Tundra full size trucks "

    *
     
  8. William Joyce
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    William Joyce Chemotherapy for PC

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    Yeah, but for the life of me, I CANNOT understand the Indian computer help guy.
     
  9. Said1
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    Said1 VIP Member

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    Keep in mind there has to be 150,000 people wanting to join the police force, and successfully graduating.

    Same thing in Canada with nurses, the only problem is no one is interested in nursing anymore, or teaching, or practicing medicine......
     
  10. MJDuncan1982
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    MJDuncan1982 Member

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    I disagree that a free market is a social good. What about the Jungle? A free market has to be regulated.
     

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