Fewer Jobs - Lower Wages?

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QUOTE: "Consider IBM. According to Business Week, by the end of 2008, more than 70 percent of IBM's work force of 400,000 was abroad. In 2009 IBM reduced its U.S. employment by another 8 percent.

For the work force, the outcome may be "grievous," in accordance with Smith's maxim, but it is fine for the principal architects of policy. Current research indicates that about one-fourth of U.S. jobs will be "offshorable" within two decades, and for those jobs that remain, security and decent pay will decline because of the increased competition from replaced workers.

This pattern follows 30 years of stagnation or decline for the majority as wealth poured into few pockets, leading to what has probably become the greatest inequality between the haves and the have-nots since the end of American slavery.

While China is becoming the world's assembly plant and export platform, Chinese workers are suffering along with the rest of the global work force. This is an unsurprising outcome of a system designed to concentrate wealth and power and to set working people in competition with one another worldwide.

Globally, workers' share in national income has declined in many countries-dramatically so in China, leading to growing unrest in that highly inegalitarian society.

So we have another significant shift in global power: from the general population to the principal architects of the global system, a process aided by the undermining of functioning democracy in the United States and other of the Earth's most powerful states.

The future depends on how much the great majority is willing to endure, and whether that great majority will collectively offer a constructive response to confront the problems at the core of the state capitalist system of domination and control.

If not, the results might be grim, as history more than amply reveals." Noam Chomsky

http://www.zcommunications.org/globalization-marches-on-by-noam-chomsky

At some pioint, we have to demand that the globalization nonsense be stopped.

Retired Monk - "Ideology is a disease"

polycarp2
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Jul. 31, 2007 4:01 pm

Comments

The problem is you have blunt headed business owners who are one dimensional in their thinking. If it makes for a bigger profit they will outsource and care little about the consequences. The just believe they are being smart businessmen. The only way to stop them is to tax such practices heavily.

captbebops's picture
captbebops
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Jul. 31, 2007 4:01 pm

IBM is a world leader in BPO (ranked 2d best here)

See my post on blog Geithner endorses Outsourcing US jobs to India for info on Convergys - another outsourcing+offshoring company - I repost the conclusion here...

First was the switch from a manufacturing to a service economy 1980s->2000s

Now they outsource and offshore the service economy too 1990s->today

We need a 'domestic enemies' stock index (DESI) w/ banksters, fossil fools, and companies with >10% empl expense outsourced+offshored or actually doing outsource+offshore - it would probably way outperform the standard indexes in total or by segment.

LeMoyne's picture
LeMoyne
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Jul. 31, 2007 4:01 pm
Quote captbebops:

The problem is you have blunt headed business owners who are one dimensional in their thinking. If it makes for a bigger profit they will outsource and care little about the consequences. The just believe they are being smart businessmen. The only way to stop them is to tax such practices heavily.

A tariff (tax) on the wage differential would do it. However, as long as the neo-liberalism idea "more profits to transnationals makes America prosperous" holds sway...nothing will change. Clinton was a proponent of neo-liberalism...as is Obama. It goes without saying that the Republicans endorse it as well.

Ultimately if you think it through, It's a global race to the lowest possible wage.

Retired Monk - "Ideology is a disease".

polycarp2
Joined:
Jul. 31, 2007 4:01 pm

Seventy percent of the workforce is international seems like a lot, until you consider that 60% of IBM's revenue comes from international markets, and future prospects for growth are in emerging markets.

PeeWee Returns's picture
PeeWee Returns
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Jul. 31, 2007 4:01 pm
Quote PeeWee Returns:

Seventy percent of the workforce is international seems like a lot, until you consider that 60% of IBM's revenue comes from international markets, and future prospects for growth are in emerging markets.

I suppose that is because globalization has made other nations richer, while it simultaneosly has made the US poorer.

This is why I don't understand why you conservatives can't see how the US will no longer be THE economic powerhouse any longer. You can't continue to export your labor, and keep your internal market booming, it's just not possible.

So while the rest of the world gets richer (esp. China) the US becomes poorer, hence less purchasing power...

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meljomur
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Jul. 31, 2007 4:01 pm

As one of the grandfathers of economics, Ricardo, noted, "a nation that outsources its labor costs will impoverish itself."

Since a few can make out like bandits by doing that, Ricardo's tid bit of wisdom is ignored.

Retired Monk - "Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 4:01 pm

OMG Poly, you dare to quote one of the saints to disprove the theories of the disciples! As we have noted earlier, Adam Smith and John Calvin don't support what they are claimed to sanctify either.

I think we ought to use horror and sci fi movies to describe the operation of the Corporate Monsters invading the earth. Nothing beats the "undead" of the Corporate Person. "It Came From 300 Billion Dollars" or the Financial Pod People we know as the Banksters, and how they infiltrated human society and took over. Scary stuff. Real aliens among us.

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DRC
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Jul. 31, 2007 4:01 pm

PeeWee wrote: "Seventy percent of the workforce is international seems like a lot, until you consider that 60% of IBM's revenue comes from international markets, and future prospects for growth are in emerging markets."

-------

At one time, the U.S. shipped its products...and retained its jobs; retained its economic infrastructure. It was called global trade.

Retired Monk

"Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 4:01 pm

“I think we ought to use horror and sci fi movies to describe the operation of the Corporate Monsters invading the earth. Nothing beats the "undead" of the Corporate Person. "It Came From 300 Billion Dollars" or the Financial Pod People we know as the Banksters, and how they infiltrated human society and took over. Scary stuff. Real aliens among us.”

WOW, the “undead” movies had it all wrong. Our “undead” zombies are not people, they are corporations. It seems like movies “Robo-Cop” “Avatar” and “Repo-Man” do speak to some truth about “undead” corporations’ runing out of control. Instead of science–fiction, maybe political-fiction would be a better description sinse they speak more to the political implications then the science implications.

“Seventy percent of the workforce is international seems like a lot, until you consider that 60% of IBM's revenue comes from international markets, and future prospects for growth are in emerging markets. “

I guess we should stop growing corn that is exported and grow it abroad since it will be exported. We are a very large producer of wheat, following that line of thought we should stop exporting wheat and grow it abroad. The future prospects for growth in corn and wheat are in emerging markets.

Both of the two paragraphs are simple responses to a complex problem. A better solution is to slow up birth rates.

shalwechat's picture
shalwechat
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Jul. 31, 2007 4:01 pm

With this issue looming, Ann Coulter is keeping her followers distracted with the topic of Obama's Muslim plans for America. She wrote: "Someday soon, you might wake up to a call to prayer from a Muslim muezzin. Millions of Europeans already do..."

As long as they are distracted and fearful, they are not thinking about their own lack of upward mobility. Little do they know that the economic policies of her hero, Ronald Reagan, set off the events that have caused this Caste System to form in the first place.

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tedkelly
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Jul. 31, 2007 4:01 pm

Currently Chatting

First Columbia took on their drug lords, now they're taking on their billionaires...why can't we?

America’s billionaires are driving this nation’s poverty epidemic. But it doesn’t have to be that way.

As we speak, working-class Americans are getting screwed over by policies that favor the wealthy elite, and leave everyone else in the dust. As a result, more and more Americans are living in poverty.

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