Offshoring jobs, and global competition might aggregate to very little net loss for now, however, my deep concern is the QUALITY of the replacement work, and what happens over time. Those destination countries are LEARNING FROM US.
I hold two college degrees (BA in Business Administration, and a BS in Computer science), and I live in a sort-of "tri-state" triangle in Illinois / Kentucky / Indiana. I can tell you this. Aggregate of zero or not, hearing of a local Pharmaceutical company moving its IT jobs overseas (India) stings deeply. That company has been a premier employer in this area for three decades.
Another stinging moment was the closure of a plastics factory in a town near here: 200 families will not be celebrating Christmas this year (at least not economically), I'd wager.
Its tearing the heart out of our industrial heartland.
While indifferent (and they ARE indifferent) multi-national companies shunt jobs that Americans trained for, and utilized to enrich them to overseas markets, I must ask a question of the free-trade pundits out there.
Is the decimation of entire expanses of our economy WORTH the risk. We NEED the skills in those services and industries for a couple of unpleasant realties of life. The need to work for a living, war (economic, military or otherwise) and pestilence.
I see trade substantially going only in one direction. We buy cheap goods, we lose entire industries to cheap labor countries....now substantially only to ONE or TWO countries, and our national stability, even our defensive capability is being deeply threatened by supply chains extending into the third world, and by too much interdependence.
Service jobs often require college degrees, requiring YEARS of work and expense to train for. American ability to flex might just run out before India and China run out of hunger.
I find it incredible (incredibly STUPID, actually) that we are risking this. Except for energy, the USA was pretty much a stand-alone economy. When by simply withdrawing, the United States loses mostly its import related jobs, and some jobs on the margins and we retain our leadership, likely for another 50 or 75 years, I must ask WHY.
Via "free trade" we are helping countries that allow rampant corruption, enforce next-to-no environmental laws, change only when embarrassed into it (or forced to), oppress religious practice, free speech, and basic human dignity.
In exchange for Ipods and consumer goods made by slaves we embrace such a world. How is that beneficial in even the smallest degree for the betterment of mankind?
We may say that it offends their cultural norms, but then again, it's OUR money, it's OUR risk, not the risk of the big businesses that dump our workers. Why do we have no say-so in these "agreements" (a national referendum, for example) if such profound measures are under consideration by our government?
There are also a couple of other considerations. Via USA "free trade" policies, many pacific rim countries who cannot afford to do so (now including China, I understand from reading) are undergoing drainage of the few jobs they had available. Formerly, US quotas forced multi-national companies to spread the wealth, now it's all concentrated in the hands of China, a potential adversary.
What happens "IF" (when) China turns on us, either economically or militarily. A chinese trade embargo, or a mass sell-off of US securities (over a trillion dollars worth) would destroy not only them, but us as well.
What about moving pharmaceuticals away? Who gets medicine in a SARS epidemic, or a Avian Flu epidemic, or if some new strain of Ebola spreads across Asia and North America?
Do we risk the same with India? With Indonesia? With who else? All at once?
I think that as this builds momentum, the American middle class has the potential to be BURIED. Perhaps our economy can absorb the destruction wrought by a reborn China, or a reborn India over time, but we cannot afford the attacks on the industrial sector coming from one side, and the attacks on our tech sector jobs coming from the other side, and outsourcing in our own market destabilizing our already shaky families, benefits, and all the other good things Americans have worked (and FOUGHT) so hard for.
I say that even if it takes very little right now, so-called globalization, and "free trade" is a crazy train, and for the average American, life is coming off the rails.
This needs to be slowed down so we can see the potential damage that can be done. Immoderation (especially when you have abundance) is ALWAYS stupid.
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Offshoring jobs, and global competition might aggregate to very little net loss for now, however, my deep concern is the...