http://www.washingtonpost.com/business/economy/obamas-record-on-outsourcing-draws-criticism-from-the-left/2012/07/09/gJQAljJCZW_story.html
Unemployment critics have recently pointed to Obama’s tax
policies on outsourcing jobs. President Obama has mentioned changing the rule
that grants the right to avoid paying taxes for a select amount of time on
income from overseas; however the rule has yet to be changed. This subject was
discussed during the presidential campaign, but again, nothing has changed
since. American jobs are declining, and there has been a continual shift of
outsourcing to low-wage countries. Between 2008-2010, an estimated 450,000
American jobs were lost to China’s increasing exports. Though there was a
significant economic standstill during this period, critics still argue what
Obama intends to do with the outsourcing dilemma. A study done by the U.S.
Bureau of Economic Analysis in 2010 showed that large American companies barely
added any jobs, however most extended their foreign labor force by 1.5 percent.
Good article as it has highlighted a significant concern for the American economy.
ReplyDeleteHaving said that, after giving it some thought, would it be fair to say that most of these companies are (kind of) no longer really/truly "American" companies. They've become global networks that design, manufacture, purchase and sell goods or services wherever around the world it's most profitable for them to do so, so they can't really blame outsourcing necessarily.
On the other hand, the idea of cutting American jobs and 'shipping them abroad' is still offensive to many. The mooted “savings” incurred simply is not enough to warrant the human cost.