TigerSoft News Service 4/6/2008
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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)
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Insiders Are Betting Outsourcing Continues
in the Uniter States, despite Rising
Unempoyment, Lack of Health Care and
Fears of A National Recession.
SHAME ON HEWITT ASSOCIATES
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.
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.
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.
Exporting America: Why Corporate Greed Is ShippingAmerican Jobs Overseas (Hardcover) by Lou Dobbs (Author) "The power of big business over
our national life has never been greater..."
See - http://www.amazon.com/gp/product/0446577448/ref=cm_rdp_product
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
poll
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."
http://online.wsj.com/public/article/SB116277226395813918-TvtW_7IYYvHHLZCbZTWcbV3_aQc_20061205.html
http://www.foreignaffairs.org/20070701faessay86403/kenneth-f-scheve-matthew-j-slaughter/a-new-deal-for-globalization.html
http://neweconomist.blogs.com/new_economist/2005/04/china_and_the_u.html
More
on this soon.
,