Outsourcing/Globalization and the Internet are here to stay, that's a fact. Present and future employees have to factor this into their lives when choosing college majors and/or self education. People have to adapt to these changes or they will suffer the consequences. As far as socializing the losses, I don't think any private company should receive money for help, unless it's private money. Period. Let the car makers go into Chapter 11, then maybe their unions will say something worth listening to. If not, start from scratch without unions and build a better car for less. As far as the safety net, absolutely, noone is immune to hard times.
True. But the companies engaged in outsourcing should normally be the last in line when it comes to tax cuts, assistance or any other privileges.
Outsourcing is sort of a "chicken and egg" thing. Even if you as an employer resisted outsourcing, you still have to compete against those who do... including Western Europeans... thus, leaving your products/services as higher cost. Most buyers will not pay your higher price simply because you refused to outsource... they think of their wallet first too. (A recent personal example... wifey went furniture shopping for a bedroom set. Found one for about $3900 at one store, found similar one at different store for about $6400..on sale, to boot, down from about $10,000. I asked about the price diff at the second store, and the sales person said "ours was made in America... the other store's was made in China. So, which would most people buy? Some will be pleased to hear we bought the more expensive one.) Low-cost labor in Asia was always "in the cards"... just a matter of when. Western companies hastened the shift, but it was always unstoppable. Nasty as the consequences are for those who lost well-paying jobs, there never really was any alternative outcome.
And when the federal government infuses the banks with cash to increase credit who do you think will be the first in line to receive such credit? The highly compensated corporate executives who are laying off their workforce to maintain payroll but more importantly, to maintain their personal compensation and perks. How many companies have you heard of where the first course of action was to take pay cuts at the top in order to save the workforce at the bottom? These companies have no problem reducing headcount and reducing work week hours for the general labor but ironically none take it on the chin at the top. Once money is freed up they will be the first in line for credit.
"Socialism" ? Let's call it what it really is: Putting Capitalism into Receivership. Obama is trying to save Capitalism from itself. I hope it works.
It seems to me that the net effect of outsourcing is to move money from one pocket in the US to two pockets, one in the US and one abroad. It also seems that to the extent that outsourcing results in US unemployment, that US productivity is harmed and the benefit of outsourcing (if the entire US economy is considered) is negated. The US is now in a world economy. It will have to adapt. That may mean a lowered standard of living, unless the US can educate its population sufficiently that more competitive goods and services of greater value can be produced, and unless the US can cease, or greatly reduce, activities that are harmful to its productivity. Its love affair with war will, thankfully, have to be terminated. It seems Obama's initiatives are focused in these directions, and for that i applaud him. Perhaps Capitalism can be rescued from itself.
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