wpe50.jpg (1913 bytes)    TigerSoft News Service    4/6/2008        Visit our www.tigersoft.com   
 Insiders Are Betting Outsourcing Continues
       in the Uniter States, despite Rising
       Unempoyment, Lack of Health Care and  
       Fears of A National Recession.   

  by William Schmidt, Ph.D. (Columbia University)
                                            (C) 2008 All rights reserved.  Reproducing any part of this page without
                                                            giving full acknowledgement is a copyright infringement.

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              http://www.cartoonstock.com/directory/o/outsourcing.asp   http://www.sepiamutiny.com/sepia/archives/000368.html

           Insiders Are Betting Outsourcing Continues
       in the Uniter States, despite Rising
       Unempoyment, Lack of Health Care and  
       Fears of A National Recession.   


                       With jobs disappearing, what stock goes up? Outsourcing Specialist, Hewitt Associates.
                 It still shows lots of Blue Big-Money and Insider Buying on TigerSoft Charts.

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                         Outsourcing overseas hurts the US Dollar, which is now falling at a 12.4% rate.
                 That means higher prices for more and more underpaid American workers, thanks to
                 companies that follow the advise of Hewitt Associates to outsource, outsource, outsource.
                 A Depression will come to the United States is most Americans are pauperized in the
                 process of internationalization of jobs.  Many feel the root cause of the Great Depression
                 was simply lack of consumer buying power.
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                             Teaching overpaid company executives how to lower your workers with low pay
                and benefits or not even hire workers pays richly in America now.  One more sign of
                the corporate rich gutting and destroying middle class America.  (If I sound like, Lew
                Dobbs, in this case, it's true and he is exactly right. 

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Exporting America: Why Corporate Greed Is Shipping
                 American Jobs Overseas (Hardcover)
  by Lou Dobbs (Author) "The power of big business over
                 our national life has never been greater..." 
                 See -
                       There is strong held public opinion regarding outsourcing (especially when combined
                 with offshoring) that outsourcing is killing the US LABOR MARKET.  Clearly outsourcing
                 has a terribly detrimental effect on individuals who face job disruption and employment
                 insecurity.   Globalization is causing real wages to decline in the US, evem for the college educated.

                                   Globalization Requires A Bigger Social Safety Net

                        Labor laws in the United States are not as protective as those in the European Union.
                 "While globalization is perceived as a challenge both in the United States and in Europe,
                 the policy debate in both regions differs...(I)t is clear that Americans are more pro-market
                 than Europeans. "
                  See -  http://goliath.ecnext.com/coms2/gi_0199-6910872/The-transatlantic-divide-how-the.html
                 One reason Europe does not have a large trade deficit is because it is much more protectionist
                 than the US.  In London's Financial Times, economist Alan Beattle writes:
If Americans are feeling ever more insecure about inequality, jobs and globalisation,
                              they are not alone. The concerns of the “anxious middle” income earners are echoed across
                              the Atlantic. But ... Americans have tended to display a much greater tolerance for the type
                              of economic dislocation that can accompany globalisation... Statistically, the European Union
                              and the US show the same level of enthusiasm for foreign trade and globalisation. Trade also
                              accounts for a similar percentage of both economies. But Europeans demand a larger social
                              safety net ... to shield them from the vagaries of competition, judging by studies of trade,
                              taxes and  welfare payments. 
Meanwhile, differences in inequality between the US and Europe owe as much or more
                             to redistribution as to unequal wages. ...[W]hile wage disparities are similar, in the US government
                             cash benefits reduce the proportion of households in poverty by less than one-quarter, while
                             elsewhere in the OECD welfare systems reduce that proportion by more than half. Among rich
                             countries, the US is thus left with the largest proportion of households living in poverty. European
                             workers are also much more cushioned if they become unemployed. ... On top of this the European
                             workforce receives a higher “social wage” – public education, healthcare and housing provided
                             free or heavily subsidised by the state – whether employed or not. ..."

                                                                Protectionism Is Growing.

                                        In 1999, the NY Times wrote: Al Greenspan "waded into the escalating debate over
                              trade policy, "denouncing growing protectionist pressures and arguing that pockets of
                              workers sometimes had to suffer in order for the nation to prosper."  Conservative,
                              ritualistic free-trade economists always tell us that it was the Smoot-Hawley Tariff of 1930
                              that guaranteed the great Depression.  

                                      Today both Democratic frontrunners want changes to NAFTA, which Hillary Clinton now
                              says has "serious shortcomings."
Candidate Clinton also says she will take a "hard look" at the U.S.
                              position in the Doha round of World Trade Organization talks, insisting "there is nothing protectionist
                              about this." Obama praises globalization for bringing millions of workers into the global economy
                              but wants a tax code that discourages companies from shipping jobs overseas. 
Congress will likely
                              remain in hands of Democrats.   There will be no more fast-track Presidential authority to grant
                              most-favored-nation status to another company without Congressional oversight. 

                                       January 2008, CNN Money and Fortune ran banner headlines:                               

                            America sours on free trade

                     Economic anxiety has inspired a backlash against free trade,
                     as a new Fortune poll shows, giving Democratic candidates a
                     potent issue. Will it lead to protectionism?

                              "Americans are increasingly feeling like the losers.
                     A large majority - 68% - of those surveyed in a new Fortune
says America's trading partners are benefiting the most
                     from free trade, not the U.S. That sense of victimhood is
                     changing America's attitude about doing business with the
                     world. "

                                              We are a nation crawling into a fetal position, cramped by fear that America has lost control
                                 of its destiny in a fiercely competitive global economy. The fear is mostly about jobs lost overseas and
                                 wages capped by foreign competition.  But it is also fueled by lead-painted toys from China and
                                  border-hopping workers from Mexico, by the housing and credit crisis at home, and by the residue of
                                  vulnerability left by 9/11 and the wars that followed. Americans were willing to experiment with open
                                  borders during the exuberant 1990s. Today that mood has darkened. We are turning inward.
                                  Especially now, as the U.S. economy sputters, we are on the verge of becoming a country of
                                  economic nationalists."


                                        More on this soon.
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