Who can forget that infamous declaration by Greg Manikiw, Outsourcing is good for America, backed up by fictional economics from an an offshore outsourcing group. Despite the never ending alarming U.S. unemployment rate, the jobs crisis and the stagnant wages, it seems Obama is touting the same philosophy. Economists, on the other hand, refuse to dare challenge this corporate party line and mention the O word, outsourcing.
Where are the jobs? John Bougearel really nails it on fictional CBO and BLS future employment projections.
American policies must take steps to stop the bleeding of jobs overseas, Obama’s new Council on Jobs and Competitiveness should be enacting policies and proposing legislation that repatriates US jobs and disincentivizes further outsourcing of US jobs. These policies would of course be hugely unpopular with Corporate America, but that is the crossroads where we now stand.
Bougearel lists the never ending fiction BLS job growth projections and now similar delusional numbers by the CBO for 2011-2015.
The CBO is projecting 2.5 million jobs will be created annually from 2011 to 2015. From the CBO: “As the recovery continues, the economy will add roughly 2.5 million jobs per year over the 2011–2016 period.”
To add credibility to rhetoric, and to provide a measure of substance to minor accomplishments, politicians often cite relatively insignificant numbers and data to boost support. The most recent claim of success is being lauded today in Schenectady, N.Y., birthplace of the General Electric Co., to showcase a new GE deal with India, and to announce a restructured presidential advisory board to focus on increasing employment and competitiveness.
Where have we heard this before? Geithner is once again claiming China and the United States could cooperate, this time by giving away more of American advanced technology. Firstly, Geithner mentions China's currency manipulation.
On top of 2.8 million jobs lost from 2000 to 2010 in finance, IT, HR and procurement, The Hackett Group projects that another 1.0 million will disappear by 2014 in North America and Europe, representing a total reduction of 46% of jobs in these functions since 2000.
Maybe it's because he has the queen of offshore outsourcing, Diana Farrell on his National Economics Council. Regardless, President Obama is wrong. India is indeed a poacher of U.S. jobs. How else do you think their offshore outsourcing industry is $50 billion a year, with 60% of that coming from the U.S. representing 1.32 million U.S. jobs lost.
Right now we have 17 million college graduates working as waitresses and sales clerks. We just saw in this 60 Minutes report PhDs, Masters degrees, people with advanced skills, grateful to get a part-time job at Target. We have 11 U.S. industries not employing Americans, U.S. workers, but where most workers are offshore or brought in as cheap labor.
India’s top tech firms, along with Nasscom, are lobbying harder on Capitol Hill and are set to launch a public campaign on hiring more local staff in the US as political rhetoric against offshoring of IT and back office jobs reaches an all-time high ahead of the US November elections.
Hiring Americans is not what they will do in reality. Instead they will contract or hire a few token Americans to point to as evidence they are not committing global labor arbitrage. Labor arbitrage, or squeezing workers for profits, is the entire business model of these Indian body shops.
These same offshorers are buying our elections and controlling our Congress.
Bangalore-based Wipro spent $33,000 as lobbying costs in Q2 this year in the US. Chennai-based Cognizant has spent a whopping $320,000 in lobbying this year.
Now guess which party is completely in their pockets? Republicans.
Some of the intense lobbying and other initiatives are already bearing fruit. Last month senate Republicans defeated a bill aimed at taxing American multinationals moving services and manufacturing jobs to cheaper overseas locations such as China and India.
Our Congress sucks. I think all will agree with this statement. That said, is there anyone, anyone at all who is a working stiff in the United States, be they conservative, liberal, green, purple, red, blue who thinks it's a great idea to give tax rebates to corporations when they offshore outsource their job? Do you think it's just swank when you must train your cheap labor replacement before being fired? Do you think about increasing corporate profits by using cheap labor when you cannot pay your mortgage because your job was offshore outsourced?
I didn't think so.
No one who works for a living in the United States thinks offshore outsourcing our jobs is a great idea. Yet our Congress, once again, blocked the bill that would help curtail offshore outsourcing. The block was all of the Republican Senators plus these Democrats:
Warner (D-VA)
Tester (D-MT)
Nelson (D-NE)
Baucus (D-MT)
Joe Lieberman, now an independent, owned by multinational corporations, acting as a U.S. Chamber of Commerce, demanding their cheap India and China labor, also voted against the bill.
On The Economic Populist you might have noticed the middle column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.
Sometimes though, one cannot say it better but miss those who did. This week has damning posts on tax avoidance through offshore outsourcing.
That's right. 2.4 million jobs lost in 8 years can be directed attributed to China.
Since China joined the World Trade Organization (WTO) in 2001, 2.4 million jobs have been lost or displaced in the United States as a result of the burgeoning trade deficit with that nation
Dr. Robert Scott, International Economist for the Economic Policy Institute, has a new paper, Unfair China Trade Costs Local Jobs and it's well researched, damning. The AAM has published the report in an easy scrolling presentation on the AAM website.
The research paper's bullet points are reprinted below:
Hundreds of years ago the Incas would sacrifice virgins to appease their Volcano God.
The Gods and methods of sacrifice may have changed, but the tradition remains.
Like the Incas of old, we find ourselves helpless against forces we do not understand. The foundations of our economy shake and falter in terrifying ways.
In our desperation for answers we turn to High Priests of Economics who tell us these evils have befallen us because of our sins. We must sacrifice the innocent to the Volcano God or it will destroy us all.
The High Priests of Economics never explain exactly how these sacrifices will fix the economy, nor do they mention that the sins in question might be their own. Yet we still rush to offer up our children's futures through unpayable debts while never considering that there might be better alternatives.
Despite the never ending alarming U.S. unemployment rate, the jobs crisis and the stagnant wages, it seems Obama is touting the same philosophy. Economists, on the other hand, refuse to dare challenge this corporate party line and mention the O word, outsourcing.
Anyone else wondering how a President, who just received a red tidal wave that was a 
In a backdrop of election 2010, we have more spin. NASSCOM, the India offshore outsourcing industry is starting a
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