THE NEXT WAVE OF OFFSHORING
THE NEXT WAVE OF OFFSHORING Far Eastern Economic Review March 2005 By Robyn Meredith
A few interesting quotes from this article:
Robyn happily chirps, “Over the next decade, offshoring will knock millions of white-collar Americans and Europeans out of work, blowing a hole in the middle class from Los Angeles to London, from Boston to Berlin, from Toledo to Tokyo, from Austin to Amsterdam… Fat, rich and spoiled Westerners have for several generations been shielded from workplace competition with the world's most populous nations. ”
“Here's the extent of the good news for middle-class America: If history is any guide, just over a third of those who are laid off because of offshoring will quickly find a new job and be no worse off, according to consultants McKinsey & Co. Just over half will have to take pay cuts of at least 15%. A quarter of those laid off will take pay cuts of at least 30%. European workers are even in worse trouble: those who lose jobs there are only half as likely as Americans to find new jobs within six months, according to McKinsey.”
“Yet offshoring doesn't have to be all doom and gloom for Western countries. Economists say increased trade-globalization-however painful for those who lose their jobs because of it, always brings more wealth to the world as a whole. Offshoring is already a net gain for the U.S. and for the country where the jobs land. Every dollar of spending that U.S. companies transfer to India creates $1.46 in new wealth, according to McKinsey research. India keeps 33 cents of that gain, while the U.S. keeps $1.13 for every dollar spent on offshoring.
This means consumers in the West are big winners, too. Despite the pain felt by white-collar workers whose jobs are moved offshore, the jobs transfer will bring lower prices to the shores of the industrialized nations.”
This goes to show the inhumanity of the neocons - a full two-thirds of laid off workers will face long term unemployment and lower wages. But it is even worse than that. Every time you have mass unemployment you have bankruptcies, family break-ups, an increase in substance abuse, an increased risk for heart attacks and suicide. Simply put, unemployment ruins lives and worse, KILLS.
Most of the so-called increased wealth certainly won’t do to the work force, it will go to the greedy corporations that are outsourcing. And even if offshoring was beneficial, doesn’t Robin’s sort of argument have a familiar ring to it? Isn’t it “the end justifies the means?” Isn’t it “Well, it’s OK to destroy the lives of these people because the majority benefit”? Isn’t this the same thinking as “Yes, Stalin is a brute, but give him credit, he industrialized Russia?” THE NEXT WAVE OF OFFSHORING shows once again how amoral and nihilistic the neocons are.
A few interesting quotes from this article:
Robyn happily chirps, “Over the next decade, offshoring will knock millions of white-collar Americans and Europeans out of work, blowing a hole in the middle class from Los Angeles to London, from Boston to Berlin, from Toledo to Tokyo, from Austin to Amsterdam… Fat, rich and spoiled Westerners have for several generations been shielded from workplace competition with the world's most populous nations. ”
“Here's the extent of the good news for middle-class America: If history is any guide, just over a third of those who are laid off because of offshoring will quickly find a new job and be no worse off, according to consultants McKinsey & Co. Just over half will have to take pay cuts of at least 15%. A quarter of those laid off will take pay cuts of at least 30%. European workers are even in worse trouble: those who lose jobs there are only half as likely as Americans to find new jobs within six months, according to McKinsey.”
“Yet offshoring doesn't have to be all doom and gloom for Western countries. Economists say increased trade-globalization-however painful for those who lose their jobs because of it, always brings more wealth to the world as a whole. Offshoring is already a net gain for the U.S. and for the country where the jobs land. Every dollar of spending that U.S. companies transfer to India creates $1.46 in new wealth, according to McKinsey research. India keeps 33 cents of that gain, while the U.S. keeps $1.13 for every dollar spent on offshoring.
This means consumers in the West are big winners, too. Despite the pain felt by white-collar workers whose jobs are moved offshore, the jobs transfer will bring lower prices to the shores of the industrialized nations.”
This goes to show the inhumanity of the neocons - a full two-thirds of laid off workers will face long term unemployment and lower wages. But it is even worse than that. Every time you have mass unemployment you have bankruptcies, family break-ups, an increase in substance abuse, an increased risk for heart attacks and suicide. Simply put, unemployment ruins lives and worse, KILLS.
Most of the so-called increased wealth certainly won’t do to the work force, it will go to the greedy corporations that are outsourcing. And even if offshoring was beneficial, doesn’t Robin’s sort of argument have a familiar ring to it? Isn’t it “the end justifies the means?” Isn’t it “Well, it’s OK to destroy the lives of these people because the majority benefit”? Isn’t this the same thinking as “Yes, Stalin is a brute, but give him credit, he industrialized Russia?” THE NEXT WAVE OF OFFSHORING shows once again how amoral and nihilistic the neocons are.
posted by Larry Gambone at
7:35 AM
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