Tech bosses defend overseas hiring.

San Francisco Chronichle ^ | 1/8/04 | Carolyn Lochhead

[rightisright]

Washington -- Two leading Silicon Valley chief executives, reacting Wednesday to criticism they've shipped too many high-tech jobs overseas, defended hiring workers in India and China and warned that the United States and particularly California were in danger of losing their competitive edge to the Far East.

[Dead Dog]

Damned right. They don't have a right to the free market paid for by over 1 million of our dead.

[Question_Assumptions]

I reject the idea that protectionism equals patriotism.

I do, too, and exchange rates and cost of living should eventually work everything out. But the problem is that there is a lag between the loss of American jobs and an increase in the standard and cost of living overseas. That can lead to a large number of unemployed and deeply in debt people. And since we live in a world where subsistence living off of the land is not possible and increases in productivity means that there may simply be no need to employ everyone. Unemployed people either need to be provided for or they will cause substantial social problems (they will emply themselves in theft, etc.).

Please note that a move towards both men and women working outside of the home as well as single parenthood has contributed to the problem. Where one employee used to be able to maintain a household, now two are needed because land and housing prices (which are the biggest single expense in many parts of America) are now calibrated for two incomes. Things can adjust back to a more stable situation but it isn't going to happen overnight and the question is over how much upheaval we'll have between now and then. If enough people wind up in economic freefall, things could get very bad before they get better.

[HamiltonJay]

FLORINA is telling americans what's good for them? THe fact this incompetent wench still has a job shows just how incopentent HP is!

I'll take anything this lady tells me about economics with the same grain of salt I use when Michael Moore opens his flap.

[lelio]

I am just throwing this info out, but I bet you didn't know that 25% of the high tech firms in Silicon Valley were created by immigrants.

Their coming here and starting up businesses that hired Americans fuels our economy. I can't see how sending our knowledge workforce over to a foreign land is a) going to help us, b) good for us in the long run, and c) going to encourage people to start businesses here. Why not skip the middleman and do it all in India?

[Capt. Jake]

Does it come as a surprise to you that for CEO's of publically held companies "it is all about the bottom line"? You really need for them to say that? And besides, free markets and competition should be about the bottom line.

As for whether Americans would perform jobs that are performed by immigrants, legal or otherwise, you mention a "real wage." That sounds just like what a liberal democrat would say about a "living wage." We have plenty of folks in this country who don't want to work for what the market dictates to be the going rate. Fine. That's there choice. They can live on public support if their consciences will let them. But don't blame businesses for not wanting to pay above the market in order to compete with the welfare state.

[Jim Cane]

"There is no job that is America's God-given right anymore,"

Fine.

Then there is no offshore company that has a God-given right to American military protection from piracy, terrorism, kidnappings, or nationalization, anymore.

Goose, meet Gander.

[oceanview]

and to add to your good points, this "equalization" you speak of in standard of living is a race to the bottom, these countries will not rise to the US level, we will fall to theirs. Only government subsidy will sustain the majority of our citizens who are unable to get a job that does. And in the end, that's what will build a permanent Democrat majority in this country, as the private sector middle class devolves into lower paid service sector jobs and require more government help to survive, they will vote for the party promising them the most goodies, and who are willing to tax higher wage people to pay for it.

[Jim Cane]

The corporate elites themselves are immune from this.

No they're not. The flushing toilet sinks all turds.

[Capt. Jake]

I agree with you in large part. I would add this-2 incomes are often required not just because of the cost of living, but because of confiscatory taxes to support the welfare state and because many need to send kids to private schools because of our education system. I think it is short-sighted and perhaps dangerous to attack immigrants as the problem. The real problem is the out-of-control scope and cost of government.

[oceanview]

the point you are missing: it is our own government that has created an unfair market for labor through easy visa programs like H1Bs, and through broken free trade agreements that have opened up the offshoring floodgates. This "labor market" you praise isn't some gift from god, its something created by men through willful and ignorant policy.

[RightlySo]

Very good post. :)

[rit]

It is interesting to note that the group recommendation to congress is represented by vendors primarily making money off of hardware. Their hardware, such as HP printer cartridges, are protected by US patents, so they are not threatened. What they are outsourcing is the cost of call centers, and software engineering. Interesting to note that Microsoft, which relies on software revenue, is not a listed member of their group, although Microsoft has indicated it will outsource to India.

[oceanview]

yeah, but they when they take 30-50 million with them, the trip down the drain isn't that unpleasant.

[lelio]

that's what will build a permanent Democrat majority in this country, as the private sector middle class devolves into lower paid service sector jobs and require more government help to survive

For all of Bush's faults he's already seen this and that's why he's offering a pseudo amnesty to illegals in the country. Get everyone used to being on the government dole (ala the UK) and make sure you're the party that's giving out the juicy benefits and you've got a political job for life.

Thankfully there's some in the Republican party, namely Tom Tancredo and Duncan Hunter, that are calling Bush out for this New World Order vision thing that he's trying to foist upon us.

[oceanview]

Follow Lou Dobb's excellent nightly report "Exporting America" on this topic:

http://www.cnn.com/lou

[oceanview]

It may well help him in 2004, but it will not last. Bush may well be the last Republican president ever elected in this country.

[ChromeDome]

bump for later

[meadsjn]

http://www.pbs.org/wttw/ceoexchange/episode_205/ceo_1.html

CHAIRMAN PRESIDENT AND CEO, HEWLETT-PACKARD COMPANY

Carleton (Carly) S. Fiorina is chairman, president and chief executive officer of Hewlett-Packard Company. HP is a leading global provider of computing, Internet and intranet solutions, services and communications products, all of which are recognized for excellence in quality and support. The company's headquarters are in Palo Alto, Calif.

Fiorina is focused on leading HP to achieve improved growth in revenue and profitability; greater innovation and inventiveness; the best total customer experience; and on making HP the company that makes the Internet work for customers.

Prior to joining HP, Fiorina spent a total of nearly 20 years at AT&T and Lucent. During the past two years, as president of Lucent's Global Service Provider Business, the division dramatically increased its growth rate, rapidly expanded its international revenues, and gained market share in every region across every product line. In addition, she spearheaded the planning and execution of Lucent's 1996 initial public offering and subsequent spin-off from AT&T, one of the largest and most successful IPOs ever. Prior to Lucent, Fiorina held a number of senior positions at AT&T. She began her career with the company as an account executive.

She became president and chief executive officer of HP on July 17, 1999, succeeding Lewis E. Platt, who previously had announced his intention to retire. On July 23, 1999, Fiorina was elected to the company's board of directors. On September 22, 2000, she was named chairman of the board directors.

Fiorina holds a bachelor's degree in medieval history and philosophy from Stanford University; a master's degree in business administration from the Robert H. Smith School of Business at the University of Maryland at College Park, Md.; and a master of science degree from MIT's Sloan School. For the third year in a row, Fiorina topped Fortune magazine's list of the most powerful women in American business

[RUSure]

Bringing in immigrunts to do work that Americans won't is not free market... A free market pays the employee a 'fair' wage. If Americans will not take these jobs... they are undervalued and the pay should go up. That is supply and demand.

[kittymyrib]

These corporate parasites will be screaming for government protection when those smart, loveable Chinese and Indians decide they can take over all those high-tech companies and maybe even come up with the next "new, big idea". You say it couldn't happen? Explain that to Ford, GM and Chrysler who smugly laughed when those funny little Hondas and Toyotas first came over here. How many years now has the Toyota Camry been America's most popular car? I just dare our panty-twisting politicians to give these hateful CEOs one iota of help when their industry is taken over by foreigners.