Posted on 06/09/2007 10:21:50 AM PDT by servantboy777
U.S. data show that moving jobs overseas hasn't hurt the economy. Here's why those stats are wrong Whenever critics of globalization complain about the loss of American jobs to low-cost countries such as China and India, supporters point to the powerful performance of the U.S. economy. And with good reason. Despite the latest slow quarter, official statistics show that America's economic output has grown at a solid 3.3% annual rate since 2003, a period when imports from low-cost countries have soared. Similarly, domestic manufacturing output has expanded at a decent pace. On the face of it, off shoring doesn't seem to be having much of an effect at all. But new evidence suggests that shifting production overseas has inflicted worse damage on the U.S. economy than the numbers show. Business Week has learned of a gaping flaw in the way statistics treat off shoring, with serious economic and political implications. Top government statisticians now acknowledge that the problem exists, and say it could prove to be significant. The short explanation is that the growth of domestic manufacturing has been substantially overstated in recent years. That means productivity gains and overall economic growth have been overstated as well. And that raises questions about U.S. competitiveness and "helps explain why wage growth for most American workers has been weak," says Susan N. Houseman, an economist at the W.E. Upjohn Institute for Employment Research who identifies the distorting effects of off shoring in a soon-to-be-published paper.
(Excerpt) Read more at businessweek.com ...
What happens when China runs out of virgin land to pollute and their air is solid smog?
Not to mention all the people here in the U.S. that are not counted in the unemployment data.
Manufacturing jobs are growing world wide as the population increases so goes the demand to produce. Do you have a source that supports that claim....I’d be interested in reading why you feel that thats the case.
Excessive regulation is indeed stunting manufacturing growth in the U.S., but on the flip side, many of these regulations are needed to protect the health and well being of the environment and the worker.
China dumps waste at will in their waterways, Mexico has little environmental controls....ever seen how polluted the air is in various Mexican cities?
You make very good points to be sure. I work for a large fortune 500 company and we do lots of business internationally. I must say, India, China, Indonesia, Mexico to name a few have horrible human rights, worker safety, and environmental records.
Long hours, if not slave labor, little benefits, paltry wages.....trade with these countries is not and has not been negotiated in such a way as to favor the American worker.
We have guys that come back from China every week. The stories they tell are something else.
The majority of China’s waterways are now so polluted you cannot swim in them. This is in large part to the economic expansion in that country and the lack of proper infrastructure to handle the industrial waste.
The American worker cannot compete with countries that cut cost to the bone even at the expense of their own air, land, water, and worker.
1. I’ve heard that stat thrown around for quite some time. A quick Google search turned up many reference to continually-declining manufacturing jobs, but I found one statistical reference in my quick search:
http://www.aeanet.org/publications/IDMK_AeA_Offshore_Outsourcing.asp
I believe the decline is due to increased mechanization and robotization.
2. Such regulations are not needed. Corporations offer safety and health environmental standards as part of their overall benefits package. Workers will choose to work where they’ll feel most comfortable. Government regulation does, however, centralize the economy more and reduce the total number of employers. In order to argue that safety regs are necessary, you would also have to argue wage controls were necessary. In fact, wages and working standards were going up prior to regulation. Employers realized that workers were more productive with better lighting and ventilation, and preventing major accidents reduced human capital losses.
3. On the polluted third world, it is mainly a result of piss-poor property rights in those countries. A factory can dump sludge onto an unowned piece of common land or some squatter’s plot with no clear title.
Pollution is nothing more than a violation of property rights, and it is no coincidence that 99.99% of pollution occurs on public or common property (in the air, in the water, on government land, etc. etc.). Rarely does a polluter dump his negative externalities onto another private property owner.
3. The long hours, little benefits, and paltry wages you complain about are only indicative of their stage in economic development. We passed through that stage as well in the middle of the 19th Century.
I can’t wait for the super-capitalists to tell us how the “phantom” GDP is not real.
“But the government is telling companies where to do business by putting tons of onerous regulations, taxes and costs on employing domestically; whereas a offshore job is merely an accounting entry.”
Just about the best summary of the current situation I’ve ever seen.
Just go to upstate New York to see the effects of over regulation and too high a tax rate on the local economy.
Old manufacturing towns there are scary.
Now we see how all these great products fabricated and formulated in China is poisoning the h@ll outta people.
Also reported is the shape of 2/3 of China’s provinces in regards to air, land and water pollution.
American’s are held to a higher standard than the rest of the world, therefore it is more expensive to produce here.
Instead of negotiating these awkward trade deals and giving up the farm to foreigners, how bout we demand the Chicoms, Mexicans, Indians and the like raise the standards on health and safety, environmental protections, waste disposal, and pay their people a decent wage.
First and foremost AMERICA, stop buying this cheap crap they ship over here.
Ya get what ya pay for-——if your lucky.
I’d rather pay a few cents more to get a quality product. This is what American manufacturing was once known for.
And yet we still produce more than Japan and China, combined. I'd post a chart, but you didn't understand it the first 300 times I posted it.
This is what American manufacturing was once known for.
Still is.
Yep. same ol tired lil graphic.
My research leads one to believe China’s GDP is fast approaching ours. Seems you missed these reports.
Fast approaching? Their GDP is less than 1/6 ours.
Seems you missed these reports.
Maybe you'd show us your crayon scribblings?
No...but its my job to call companies that go offshore....TRAITORS
NAFTA and CAFTA are doing more harm to America as the above statistical errors illustrate.
Once the NAU becomes fact....come see me and continue your rant against “Protectionists”.
Once the NAU becomes fact....come see me and continue your rant against “Protectionists”.
LOL!
The answer is found in Google.....of course you who have an agenda would never do the search
The answer to what is wrong with NAFTA? Or the answer to what is wrong with you?
.....of course you who have an agenda would never do the search
Of course you, who aren't very bright, would never post the answer. Because it would make you look dumber than you do now.
LOL
I don't care about your conspiracy theories about the NAU.
I guess you are proof that even dim people can earn degrees.
Noah was ignored too.
;-)
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