Tackling the Outsourcing Evil

Written by Justin Delabar
Published October 06, 2004

The problem of outsourcing has cemented job retraining education as an issue of top importance, yet it is something that is not publicly discussed often. Bush, however, is firmly behind the idea of retraining and has mentioned it on several campaign stops in those folksy "Ask Bush" sessions, although the administration's actions have not exactly added up to Bush's retraining advocation. Earlier this year the Labor Department made it more difficult for workers in lower population states to receive federal grants to attain job retraining by striking the states' ability to put laid-off persons from small companies together to reach the minimum 50-person threshold for federal retraining aid. Former manufacturing workers in states such as Iowa have been hit particularly hard by this new modus operandi and are currently feeling the full brunt of the economy's stagnation. Bush has also suggested a $151 million cut to job retraining programs this year, even though the economy has not yet emerged from its sickbed.

In a global economy where outsourcing is inevitable, an administration cannot skimp on retraining programs as the Bush administration has — Howard Rosen, head of the Trade Adjustment Assistance Coalition even claims retraining programs should have their funding doubled. The administration seems to not be interested in abating outsourcing, as their reluctance to close the corporate tax loopholes that promote the practice seems to suggest, so one would think they would have tackled retraining in a way befitting true free trade proponents, but they simply haven't. Social Democratic Corporatist states in Europe, such as Denmark, have adjusted nicely to the new global economic system through their promotion and funding of far-reaching retraining programs, which is absolutely required when a country's leadership commits an economy to the whims of global change. However, the United States is much larger and more complex than any of the small Social Democratic European countries and it, quite possibly, may not be able to undertake a policy of unabated outsourcing no matter the funds put into retraining programs.

Kerry and Edwards have claimed that they will close the tax loopholes in order to cease large numbers of jobs from being outsourced while increasing funding for retraining programs within communities, which is the only effective way to tackle the problem. The Bush administration's acceptance and even promotion of outsourcing (Bush's top economic adviser claimed outsourcing is a good thing for the American worker earlier this year) puts them in an impossible bind. In order to spur true economic growth they would have to fund an impossibly large retraining program, which by itself is against Conservative nature (even if they can spend $120 billion on a misguided foreign invasion.) The only way to satiate the economic burdens brought about by the outsourcing epidemic is to limit outsourcing itself — it cannot be stopped completely — and couple that with retraining programs that are adequately, but not overly, funded. The Kerry/Edwards ticket is the only serious one promoting such a plan.

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Tackling the Outsourcing Evil
Published: October 06, 2004
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Section: Politics
Writer: Justin Delabar
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#1 — October 30, 2004 @ 14:13PM — Christopher M. England [URL]

I agree that outsourcing is an evil; I disagree that Kerry/Edwards is the solution. George W. Bush isn't the cause of outsourcing -- it's been around for a long time. More than 40 million American jobs were eliminated between 1979 and 1999, long before Bush ever took office. While it's true the economy created more jobs than were eliminated during this period, United States Department of Labor figures indicate that only thirty-five percent of laid-off full-time workers wound up in equal or better paying jobs. With such numbers, it's quite obvious that Bush's predecessors (Carter, Reagan, Bush, and Clinton) did not fair too well in combating outsourcing either. Bush has managed the economy fairly well considering the impacts of 9/11, the subsequent war on terror, and the multiple hurricanes that have ravaged Florida, one of our Nation's biggest economies. With perhaps the exceptions of Abraham Lincoln and Franklin D. Roosevelt, no other President has managed such adversity so successfully.

#2 — October 30, 2004 @ 14:38PM — Hal Pawluk [URL]

"With perhaps the exception of" Herbert Hoover, no president has managed to create such adversity so successfully.

You're right in going back further, though.

The real mechanism that led to this is globalization.

This president has encouraged it with tax breaks, but Clinton, Reagan, Carter all had a hand in it.

What has happened as a result of about 20 years of bi-partisan stupidity is that there has been a structural change in the American economy.

American workers are now in a global labor pool, competing against hundreds of millions of unemployed in China, India and other countries. These countries also have much larger pools of well-educated and bright unemployed, so we're in trouble.

I recently blogged a bit of info on this: 10/27/04: BUSH SEEMS TO HAVE BROKEN THE AMERICAN JOBS MACHINE

Link opens in a new window.

#3 — October 4, 2005 @ 05:33AM — Tatvasoft - Offshore Software Outsourcing Development India [URL]

I'd like to thank you, Justin Delabar, for posting some good links and continuing to raise the outsourcing issue. Even if we deal with the loss of jobs in certain segments of the workforce, the question remains: how do we address the disproportionate loss of jobs in specific regions/localities? This seems to me to require creative and timely thinking on the part of state and local, even federal elected officials. I'm not holding my breath. When jobs flow from certain already weakened areas (primarily, the rustbelt) overseas, and the benefits flow back to corporations located elsewhere in the country, this is a recipe for dislocation and despair on a widescale, with political ramifications to be seen soon.

Jim
Tatvasoft

#4 — October 20, 2005 @ 08:07AM — GD [URL]

Hi,

I think India will get more job opportunities in offshore business!

#5 — October 20, 2005 @ 08:08AM — offshore software development India [URL]

Morever the quality of education and resource is more in India.

#6 — October 20, 2005 @ 08:47AM — Dave Nalle [URL]

What does it say that on your offshore software development website the workers are clearly in India, yet none of those shown in the header picture look even vaguely Indian?

Dave

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