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Unless one has been living under a rock, job outsourcing has affected all kind of professions. It began with manufacturing jobs, then customer support jobs, then computer programming jobs, then accounting jobs. Now even medical jobs are being outsourced. I had a chest X-ray a few months ago. The film was emailed to India for analysis, and the result sent was back to the US.
To answer the question:
1. It's terrible for the US in the short-term and long-term. In the short-term people lose their jobs. The cities where factories and offices shut down to move overseas get hurt too because the income tax is gone. All taxpayers will get hurt when the unemployed can't find jobs and have to get government assistance.
In the long-term, The US gets hurt seriously because when companies move jobs overseas they also permanently transfer the tools, technology and skills to the foreign countries they move to. They have hurt themselves big time in the process. If and when they move operations back to the US, they will have to compete with low-cost competitors they created in the very countries they moved to.
2. I lost a job to outsourcing to Mexico. The excuses companies always give you is they have to cut cost to improve earning to protect share holders. This company's stock went from $100 to $4 today. Good riddance!
3. Yes, if companies stay, people don't lose jobs, and federal, state and local governments get their income tax. Local merchants sell more products when people are employed and have money to buy things. States and cities get their sales tax when people buy things. Also, by staying in the US, companies don't transfer the tools, technologies and skills to other countries.
"outsourcing of jobs are for the low-end, factory style jobs" NO. Please google H1-B visa abuse and find out more.
You will find out why many american students are afraid to go into engineering anymore. They are afraid they will spend all that money on a degree and not be able to get a decent job because of the H1-B policies. This is more prevalent in certain industry sectors than others though.
Actually the sales pitch used to be that a corp would save 30% by shipping the jobs overseas. Now with the lower dollar, offshoring (another related term) does not look so good anymore.
This is a subject that I wish that the Presidential candidates would focus on (more) as it is killing our country losing all these jobs year after year!!! And I agree, people are living under a rock if they think that it is only the low paid, low skilled jobs that have been outsourced.
Quote:
Originally Posted by Bette
1. How do you feel about it? ANGRY
2. Has your job been impacted? YES
3. Would you support tax breaks to companies who bring jobs back to the US? Most definitely!!!
The competition among companies who do outsource is incredible. Products once selling for $12 are now $.85. This process started with progressively automated manufacturing in the US until the machinery became too expensive and now in China where their is very little automated machinery.
Probably a 15 year history.
I've seen US production lines beginning with 15 people whittled down to 4 via automation and it still wasn't good enough to make the CEO richer, off to China it went.
Well I could really understand the outsourcing "IF" CEO's pay hadn't gone UP so dramatically these past 10-20 yrs . But what it seems like to little ole me, is that any cost savings went into the BIGWIGS' pockets instead of expanding the business or pay increases (COLA) and/ or keeping medical premiums down for their employees . And that's just MY EXPERIENCE with very large High Tech firms !
Guys do you believe Obama's statements? Will taxing corporates help keep jobs in U.S? No!!! Many of you will have studies economics and understand that in times of recession the last thing a government should do is apply taxes. Do you think the government should go the opposite way and ease the norms for jobs in U.S. and take more steps to attract employers than distract them.
thats my point of view my job was outsourced to Genpact for $72000/year. My employer did not ask whether I was ready to work for less than this amount without the benefits that apply here at my job but Gosh thats the truth!!!
America has the second highest corporate tax rate in the world. (second to Japan) Can we really blame companies for going overseas if they can save a significant amount of money? China's corporate tax rate is 15% lower than that in America, and if we can't compete with that, we will keep losing jobs to other countries.
Agree 100 percent. Seems like the only factory jobs left are subsidized by the U.S. Taxpayer.
1) I'm a business major. If a company wants to outsource, thats fine... lets increase importation taxes so that when they import those goods from China, Mexico, etc they're paying taxes there. This will help our GDP by limiting imports, and encourage companies to keep jobs here. Moreover, the taxing of the imports affects both our companies and their competitors. So that we're not giving an unfair advantage one way or the other.
Well, that depends on what other trade is going on. If taxes are increased on imports, then exports will likely decrease. The issue really isn't imports as much as the loss of jobs. Although imports is directly related to the jobs, it isn't the cause. Imports come in to be sold, but they are only sold if there are buyers.
They should eliminate the tax breaks that allow companies to offshore. This is a holdover from the Kennedy administration I guess in which they encouraged companies to set up offshore facilities to prevent communism proliferation. (This is from an article in readers digest last month.) If this is true, it is ridiculous!
Naw, they do it because it saves them big money. They can pay workers less, not have to comply with safety issues, and get away with murder with how they treat employees.
It's....always....about....money.
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Great thread Bette!
!!!
. But what it seems like to little ole me, is that any cost savings went into the BIGWIGS' pockets instead of expanding the business or pay increases (COLA) and/ or keeping medical premiums down for their employees 
!
Agree 100 percent. Seems like the only factory jobs left are subsidized by the U.S. Taxpayer.
