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Outsourcing Hurts the US

Submitted by Bill Belew on Thursday, 9 March 2006No Comment

Bush said, "It is painful for those who lose jobs."

I’ll say.

"But the fundamental question is, how does a government or society react to that? One way is to throw up protectionist walls. The other way is to make sure people are educated so they can find – fill the jobs of the 21st century.

Last year, 11,375 people lost jobs that were moved overseas – says the Bureau of Labor Statistics. The year before it was 16,197. I wonder how they got such exact figures. Anyway…

There is one country that is particularly appealing to companies who want to compete on a global scale….low wages, highly educated workers and fluent in English….with a very strong accent sometimes. The country….INDIA!

In 2004 China graduated about 500,000 engineers; India 200,000 and the US 70,000.

Yo! America…it’s time to go back to school and study hard.

What do you think?

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  • Lewis Greer said:

    Seems to me I read somewhere that the balance of outsourcing actually favors the U.S. (Having made that comment, I’ve decided to go look it up. Back in a minute.)

    OK, according to the Office for International Investment (and this quote is from 2004 and picked up from the web site for the National Center for Policy Analysis), “For the past 15 years, corporations have moved jobs to the United States at a faster rate than jobs have left, for an 82 percent increase in insourced jobs compared to a 23 percent increase in outsourced jobs.”

    So, yes, jobs are being outsourced. And I can’t say if the jobs going out are more important or higher salaried than those coming in. But I can say more are coming in than going out.

    Which still doesn’t mean we shouldn’t study harder.

    -Lewis

  • Bill said:

    Great point, Lewis and thanks for sharing.

    I should have said that outsourcing is hurting some industries in the US.

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