Why Has There Been So Much Outsourcing In Past Years At The Expense Of The Average American Worker?
Posted by China Sourcing CommentatorDec 2
The right claims that lowering corporate taxes is the only way to keep companies from leaving and that if they are raised they will all leave to go overseas. However Bush lowered them and corporations still left for overseas in droves to maximize their profit so what is the explanation for that?
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Because the working class is divided and can be bullied and played depending on the situation through nationalism to give up their rights. It works like this. Workers in country A are forced/blackmailed (otherwise we have to close) into worse conditions because country B has better conditions for companies (read more exploitative working conditions). Five year later workers in country B are confronted with the concessions workers in country A did and a never stopping movement is set in motion. Unless the International working class unites the result is eventually all workers are equally poor and oppressed but ironically that’s what capitalists try to portray socialism as.
The claim made by national chauvinists, invariably endorsed by the trade unions, that the answer to the loss of jobs within the United States is to be found in protectionism, is false. As a practical matter, there can be no return, in the age of globalization, to economic nationalism. At the same time, the invocation of “free trade” by the pitchmen for the transnational monopolies is as fraudulent as all their other tributes to “freedom.” The SEP advocates neither protectionism nor “free trade,” but fights instead for social ownership of the productive forces, the elimination of national borders, and the creation of a planned, rationally-integrated global economy.
The working class cannot defend its interests under the banner of either protectionism or “free trade”. The precondition for any genuine struggle to defend jobs and living standards is the political independence of workers from all wings of the capitalist class. The natural allies of workers in advanced economies such as US and Europe are workers in cheap labour platforms like China and India who are often exploited by the same global corporations and share a common class interest in abolishing the anarchic profit system and replacing it with a world-planned socialist economy. That is the perspective advanced by the World Socialist Web Site and the International Committee of the Fourth International.
Businesses will continue to do this as long as it is legal. The result will be continued job loss in the US, and continued decrease in wages for the remaining American workers. It has nothing to do with taxes or red tape. It is mostly about cheap labor. As for job creation, yes outsourcing creates lots of jobs in 3rd world countries. It is very good for those countries – the people making shoes for 50 cents a day are better off than they used to be. But the American worker is losing everything in the process.
It started to become cost prohibitive to manufacture over here. If they stayed then the they would have to charge higher prices for their products to make any profit. We’re not the only country that has major businesses outsourcing their manufacturing jobs. Japan has started doing the same, they’re actually outsourcing to us. Some of those jobs that Japan didn’t outsource aren’t being filled by Japanese workers. While I was living there I found that they were bring in people from Peru to fill manufacturing jobs.
Oooohhh…”Maximize Profit”!!! What dirty words!!!
Do you really blame businesses for outsourcing or moving overseas? I’m guessing you don’t own a business. You have massive taxes, red tape, payroll taxes, family leave act, etc.
Here’s a shocking revelation for your left wing mind. We are not some big collective where we all pitch in for our fellow man. Businesses are in business to make profits. They don’t exist to employ people.
Capitalism at work.
If the tax climate and union pressure make it too expensive to keep your business viable in the U.S., you would be a fool not to move it abroad.
The government has to relax the regulations, red tape and lower taxes to keep business here. The unions just need to go away so that labor is competitive again. This will keep corporations (and jobs) within our borders.
Companies always outsource to countries which have the friendliest tax climate. Once we pass the FairTax, eliminating all corporate and payroll taxes, businesses will come flocking back to the United States, along with foreign businesses. It’s just a matter of time. The FairTax is gaining more and more supporters every day.
Because international law was changed, and there’s benefits taxation-wise for developing parts of business in developing countries… if we looked at states as developing countries and COMPETED WITH OUR OWN TAX LAWs, rules, and basic cost structures — we’d be better off. Back offices move from NYC to NJ, NYC to Kansas and from NY to India… for example for Chase or Citibank customer services, etc. There’s competition inter-state and internationally for jobs/mega-corporations creating programs/departments & industries overseas by the 1,000s. People are regarded as resources, same as lumber or ore or energy costs… and they’re left behind. (Therefore, an expenable resource.)
Generalists always say Unions are at fault. Anyone that does doesn’t know or realize how decisions are made — to lop off parts & send jobs overseas. It’s more about costs there & distribution and many times there’s NO UNION AT ALL in the equation (that’s a myth). For example, go ahead and call Microsoft or AOL or Citibank tonight for some sort of services… and ask where the person is. These were not ever Union jobs that were lost…
The real reason is the average Indian worker is better educated and costs less than the average American worker. You’re right, Bush tried to entice them to stay, but it is cheaper over seas.
So many people want to stop job outsourcing, but they still want to buy Toyota and Sony and Samsung and all the cheap Chinese kitchen device, Bosch refrigerators and stoves…..
When you buy foreign products, you are outsourcing …. see, we all do it.
outsourcing means cheaper labor bigger profits and bigger bonuses for very few .that’s what it’s all about a few happen all the money and the rest of us pay the taxes .and barely make it a long .if we knew how much the parts are to come back to this country and the profit margin that there is you’d be unhappy that the unbelievable how much profits people are making .when you buy a fairly expensive item and has to be replaced under warranty and all care that made so much profit still big lost to them.they figured out the right off somehow
Actually most of the outsourcing has gone to countries that tend to tax their citizens to pay for health care and advanced education. Lowering corporate taxes had little to do with it compared to the significant burdens of health insurance and training.
Exxon-Mobile paid more than $20 BILLION to the IRS last year (that is more than you and I will make in our whole life) – in China they would have paid a little more than $1 MILLION.
Not to mention all the government regulation over EVERY business that exists… Government involvement… drives them away!
Companies have been going overseas since the 70′s. It really began in earnest in 1996. During Clinton’s administration. Profits equal more jobs. Ever get offered a job from a poor man?
Because it’s cheaper oversees where the dollar is worth more than their currency.
Labor costs are a big part of it but the US still has the highest corporate taxes outside of Japan..
Unions.
Geez Hope and Change
Businesses exist to meet our demand… Or to quote from you.. “Take an economics class idiot”.
Generally the republicans cater to big business.