OUTSOURCING
porchwise said...
I don't know where Dennis has been, but you're right, Ironsides. I had a tax problem arise last summer and when I called the number referred to in the letter, I got India. The girl even admitted it and she was unable to handle the problem and gave me another number which connected me with a stateside IRS agent. And what has NAFTA got to do with outsourcing anyway? We're talking about tech phone service, not trade agreements.
That's like, I don't know how much tv you watch but a couple of years ago, one of the computer companies had an ad about this guy needed his computer fixed and he had to carry it all the way to India for repairs. Our economy could be stronger and the job market better if we just keep the jobs here.
posted by Kenny @ 1:05 PM
1 comments
1 Comments:
NAFTA has to deal with the paranoia surronding the phone support jobs heading over seas. Everyone was freaking out about NAFTA stealing American jobs and it didnt, it created them, same thing with the tech jobs in India. Contrary to your belief, i deal with tech support that is located in India for Microsoft, Lexmark, Okidata, Acer, Seagate, to name a few. I never have had a problem and I deal with them daily. Once again, if we are losing so many jobs to outsourcing, why is the unemployment rate falling?
economist Martin N. Baily, chairman of the Council of Economic Advisers under President Clinton, looked at who benefits from outsourcing. He found that for every $1 spent by a U.S. corporation on outsourcing to India, only 33 cents stayed in India. The other 67 cents came back to the U.S. in the form of cost savings, new exports, and repatriated profits. However, productivity gains add another 45 to 47 cents of value to the U.S. economy. Thus, on balance, the U.S. economy gains $1.12 to $1.14 for every $1 invested in outsourcing.
economist Charles Schultze, chairman of the CEA under President Carter, looked at the number of jobs lost to outsourcing. He found that between the end of 2000 and the end of 2003, at most 215,000 service-sector jobs were lost. This is a minuscule amount in a working population of close to 150 million. Moreover, Schultze says, the productivity gains produced by outsourcing raised real incomes and living standards in the U.S. He concluded that outsourcing cannot be blamed for the “jobless recovery.”
Contrary to popular belief, the U.S. is a large recipient of outsourcing from other countries — i.e., insourcing. In 2002, the U.S. ran a healthy trade surplus in this area — receiving $22 billion more in outsourcing from other countries than it paid in outsourcing to other countries.
Source:
http://www.nationalreview.com/nrof_bartlett/bartlett200410130821.asp
Also read this article from the Heritage Foundation:
http://www.heritage.org/Research/TradeandForeignAid/wm467.cfm
And from Computerworld:
http://www.computerworld.com/developmenttopics/development/story/0,10801,93413,00.html
And the despised Fox News
http://www.foxnews.com/story/0,2933,117820,00.html
Note, in the article you will notice that they refer to entrepreneurship and free enterprise. All I am saying is you need to research things before you draw conclusions. I did this by Google and by sources I saved. I encourage you to read the articles, I know i wont change your collective minds, but maybe you will think about it. BTW Porchwise, i have been on top of this since 2003 when I called Dell and i got an Idian on the other line
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