Macroeconomics is the Democrats worst subject, and why McCain and the Republicans didn't get that early on will haunt us all.
Lower the taxes, lower the regulation, companies will prefer America to "Offshoring"
I never understood why companies don’t get it...if you ‘offshore’ your jobs to other countries, thereby causing massive unemployment here, how are we supposed to be able to buy your products?
Another insightful article from February 3, 2009, “either ignorant or naive”;
H-1B, offshoring supporters get key Obama Administration posts
http://www.computerworld.com/s/article/345850/Career_Watch?taxonomyId=
It is like a vicious circle. The more jobs move overseas, the more Government will make up the difference by hiring more people, the more taxes will go up, the more companies will offshore to maintain their profit margins.
At this point, I think we’ve screwed the pooch anyway. Most rational CEOs see America (and the West in general) as a dead man walking. We have made too many promises that we can’t fulfill. Before the politicians own up to that, they will put the squeeze on business to the breaking point.
As bad as it seems now, this is just the beginning.
The only thing you need to know, is that Barack Obama Hates America. All decisions descend from there. This has nothing to do with economics, free markets or anything other than him doing everything he can get away with that hollows us out. Does offshoring jobs make America weaker? If the answer is yes, that will then be the policy.
I believe that a major revamping of labor law is necessary to stop offshoring. The rats have dropped some major labor bombs on the economy, most notably the Lily Ledbetter law. This terrible law will highly constrain hiring practices especially for talent with highly demanded skills. Beyond this law, I believe that the rats have issued many executive orders encouraging collective bargaining and providing ammunition for EEOC type of lawsuits.
Even if the rats had not changed labor laws, I think that major revamp of employee-employer relationships would be necessary to stem offshoring. The IRS has very tight restrictions on employee-employer contracts. The IRS wants tax withholding. In the 80s, one could become an independent contractor easily. Although many may prefer to work as employees, working as a contractor is much better than not working. With the current arrangments, the only way to work as a contractor is to work for a temp agency. For many, it is advantageous to eliminate the temp agence and work directly as a contractor. Over time, independent contractors can develop a diverse set of clients.
Foreign outsourcing is bad for the economy....it just redistributes wealth out of America to some foreign country....many times to a nation friendly to communists and/or terrorists.
If a company cannot survive in America by hiring Americans....it probably should not be in business in the first place.
As for Obama...he is just another Liberal Globalist.....thinks foreigners are better than Americans. Obama just another of those Economic Anti-Americans
You are exactly correct.
It is a common misconception that China and others have attracted our industry.
Not correct.
We have driven our industry out of the country and they ended up in China, Vietnam, etc., simply because they had to go someplace.
EPA has been the biggest driving force.
Just make a list of how many industries EPA has made difficult or impossible.
Tax laws, health insurance laws, etc., close behind.
I was once a major distributor of heavy equipment to an industry that has gone overseas and my customers had to have degreed engineers whose job as to keep up with federal and state EPA regulations.
Then there was the personnel department head that had to be expert on all of the many new laws relative to everything from sex discrimination to benefits.
Some of the laws are admittedly good. However, too many of them are needlessly complex, harassing, overly expensive.
All figure in overhead as well as direct labor costs.
Industry is not coming back until we invite them back by making the manufacturing climate more hospitable.
You could remove taxes and slash regulation and companies will still off-shore. The cost of employees is too low and the profit margins too high. All you'll do is tax them less and regulate them less on the money they make by shipping work overseas.
Proponents of offshoring refuse to see the forest for the trees, or maybe they’re making handsome profits from offshoring. But the US population is around 300 million, and China and India have combined populations of around 2.3 billion with large numbers of unemployed and underemployed. Other nations easily move that number up to 3 billion.
So, the US is going to move manufacturing jobs to cheap labor nations and offshore all the work that can be performed through modern communications, and still somehow have job opportunities for its 300 million population, the so-called high tech jobs of the future.
The real driving force is cheap labor, not regulation or corporate tax rates in the US. With unskilled labor in cheap labor nations at 5% - 10% of US rates, and skilled and degreed workers available for 10% - 20% of US salary levels, it is impossible for the US generate enough jobs that remain here to provide reasonable opportunity for its citizens.
300 million Americans. 3 billion in cheap labor nations, with tens of millions of unemployed and underemployed.
Obama probably loves offshoring and the export of US manufacturing jobs. Just another, actually the most 'efficient', means of international income redistribution. Fits right in with his cap and trade scheme of income redistribution.