IBM to outsource 10,000 more jobs before 2009 (profit, stocks, invest, contractors)

[sls76]

I'm sure Obama's ingenious plan to raise corporate taxes (not to mention the union issue) is really going to keep jobs in the US. Raise taxes = more reason to employ people elsewhere. Wake up people.

[HappyTexan]

I was referring to IT. You can't compete with the salaries in India/China for IT work.

[Mach50]

Originally Posted by sls76

I'm sure Obama's ingenious plan to raise corporate taxes (not to mention the union issue) is really going to keep jobs in the US. Raise taxes = more reason to employ people elsewhere. Wake up people.

vs Republicans deregulate, "Free enterprise", and maximize Wall Street Wealth at the cost of the middle class.

Neither model is great at retaining jobs.

But when it comes to creating jobs...this chart explains it all:

[ChunkyMonkey]

Originally Posted by sls76

I'm sure Obama's ingenious plan to raise corporate taxes (not to mention the union issue) is really going to keep jobs in the US. Raise taxes = more reason to employ people elsewhere. Wake up people.

Why couldn't one tax selectively, like those companies that have offshore headquarters in Bermuda just to avoid taxes or those that choose to outsource employees. One thing is clear, the Republican years have been a disaster so almost anything is better, IMO.

[f_m]

Originally Posted by Mach50

vs Republicans deregulate, "Free enterprise", and maximize Wall Street Wealth at the cost of the middle class.

Neither model is great at retaining jobs.

But when it comes to creating jobs...this chart explains it all:

Depends on what kind of jobs you're talking about. The boom in tech was during the 90's regardless of the government, since it had to do with the level of technology available at the time. Computers became "inexpensive" and the internet was more and more available.

[f_m]

Originally Posted by ChunkyMonkey

Why couldn't one tax selectively, like those companies that have offshore headquarters in Bermuda just to avoid taxes or those that choose to outsource employees. One thing is clear, the Republican years have been a disaster so almost anything is better, IMO.

As long as the price of something determines whether people will buy it, the job outlook will be an issue, because only manufacturing jobs really can benefit an economy.

[texdav]

Then they will just move overseas. Many have been making their money opverseas since the tech bubble burst anyway.

[gardener34]

"You can study all the math and engineering but you still cannot compete with $25K per year jobs with no benefits. That is the bigger problem then education."

YEP - I know plenty of engineers who got laid off. They are not dumb people and they have kept up with their skill levels. $25K in this country is poverty level. It is all about the cash.

And if they don't ship the jobs out, they ship the foreigners in to do them via H1-B visas. Screwed either way. I am just tired of having no one that we have all elected look out for our interests. They all say they do - lip service - they only do what it takes to get re-elected and/or get their party into power.

[tallrick]

The only way to fix the problem is to get government out of the way. The top is corrupt and too big to be reformed, so new innovation is needed. However, the complex and corrupt tax code along with local ordinances stifle innovation and prevent new businesses from forming. I am anti-tax and would eliminate or reduce all income and property taxes on citizens and domestically generated income. However, I would concede to a punative tax on those who enjoy outsourced income and who bring capital into the country for personal use. For the rest of us I would eliminate all income tax under 50,000.00 and corporate taxes for small business for several years. H1-b visas would be phased out. Even if US wages are higher, the local market for goods would support it. Otherwise lower wages would still work as real estate and commodities would fall in value to levels that work. If the average wage falls to 1.00 an hour it would be fine if median home values fall to 10,000.00 or less. However, the hyperinflationary scenario we face is only going to add to the pain and wipe out the middle class.

[cdelena]

It is hard to compete in the world market unless you can offer the service/product in demand in a cost effective and timely manner.

Not all outsourcing works but some is very effective. In areas where you can use fast networks to transmit data, and tasks where clear instructions and requirements can be stated, work can be performed overnight overseas at less than half the cost it could be done here.

I was amazed when managing projects for a large financial corporation that back office work was being performed in India at a fraction of the cost with better accuracy and faster turnaround than when done in the US. Only exception processing was kicked back to domestic workers.

US workers are the best at many tasks but companies must choose the most effective way to get jobs done in order to compete in the world market.