Contour Enthusiasts Group Archives Forums General Common Interests Thoughts on outsourcing

I am not a Communist. Communism suggests that I believe the Government should OWN EVERYTHING, and I don't. At worst, I borrow from Democratic Socialism, and Star Trek.

Second, one such philosopher is the obvious Plato (read The Republic), but probably the most influencial, and only one who truly needs mentioning, Jesus of Nazareth.

While outsourcing is a relatively new concept for Americans to wrap their heads around (since we've only been around for a couple hundred years), it's not really a new concept altogether and plenty of other countries struggle with the same issue.

Welcome to globalization. Welcome to the world where our transportation systems combined with our lean/mass production systems have advanced to the point where it largely doesn't matter where the work is done any longer. Resistance to change is futile. Adaptation is key.

The reality is that a disportionately small number of the American work force is actually outsourced when you look at the numbers. Is it a valid concern? Yes and no IMHO. I don't believe that closing our trade borders is the answer. Much of our economy has become very dependent on our own ability to ship goods to other countries (exporting). The beef/cattle industry is a stellar example of this fact. Take a look at how many millions of tons of beef the U.S. trades to other countries. There are many other huge industries here in the U.S. that have similar dependencies that would be devastated if we were to limit trade. And make no mistake about it, we're talking about trade here, except in this case, it's human capital/trade, instead of goods.

I understand the deepseated feelings that people have surrounding this topic, and the sometimes desperate circumstances that people are enduring because they cannot find work. That said, I believe it is reactionary to adopt a protectionist economic stance and to believe that limiting trade/outsourcing is the solution to the problem. We must look no further than Japan to learn this valuable lesson, for the Japanese up until the early/mid 90's held extremely tight trade borders and held very protectionist economic policies in so far as human capital and goods were concerned (imports obviously), and Japan is still struggling to recover from an almost decade long depression in their job sector that has also produced a wave of massive layoffs and the resulting cultural/societal challenges and governmental policy challenges and changes. So, protectionist policies have been proven not to work long term by example. So, if preventing outsourcing isn't the answer, what is?

The short answer is that noone really knows, because we've never attempted to operate in an increasingly global economy before. Specific to America, it seems to me (and many others) that Americans in general have a healthy distrust of government solutions. This is at the heart of the growing conservative movement here in the U.S. Economically, we must embrace the reality that the U.S. has one of the most efficient workforces in the world. The lack of sustainable job growth is a function of the fact that our economy has become so darned productive that companies are able to get by with fewer people. In this respect, we are our own worst enemy. We've innovated and invented quite enthusiastically over the last 50 years, and now we're starting to see the fruits of our labor. Obviously, some folks don't like the results. In the long term this productivity is good for America, but it doesn't help the short term job situation. Basically, we're now in a position where unless productivity growth zips along at well over 3 percent (and it has been higher than that the last several quarters), we simply won't see any real impact on job growth because of our economic efficiencies and technological advances.

I've seen some mention of unions on this topic as well. Unions are now disproportionately public sector creatures. in 1960, 40 percent of the U.S. workforce was unionized, and mostly in the private sector to boot. Today, that number has fallen to 13.5 percent, and the majority of that number is now employed by the public sector. Compared to European countries, which on average are 43 percent unionized. In short, unions are no longer the backbone of American industry. Originally unions were created because of unfair labor practices and the lack of any labor law. That was their primary purpose. Now that we've got healthy labor laws on the books, unions are increasingly no longer needed, and in many cases will only exacerbate the issue that is being discussed here due to productivity and competitive stresses, and outdated philosophies and protectionist stances.

I've never been one to encourage the welfare state. I believe that at least in part what we'd need to consider is what Clinton at least started down the path of, which is to limit the welfare state (2 years) and provide job training during this time period. Basically, I believe that the public and private sectors need to work much more efficiently together in determining what areas have sustainable job growth and provide targeted education and training programs with the money we spend on the welfare state and other pork programs. I see the welfare state as a federal extension of the state unemployment insurance programs. I believe that the government's focus on insurance programs would be better aimed at investment programs, no matter what the subject matter. This includes social security, unemployment taxes, and the welfare state. If we can strategically invest in retraining the workforce that is jobless to ensure they have relevant skillsets and even job placement programs, I think this might be a step in the right direction.

Here's a link to the fastest growing job areas by education:

http://www.bls.gov/oco/ocotjt1.htm

There's a wealth of data on the DOL website for anyone who wants to figure out where to go next for a career. I know one area that I've heard a lot about is that the auto-mechanic trade is a good place to go in the trade industries as it's no longer solely about turning wrenches due to the prevalence of electronics used in vehicles today. It's possible to make a six figure salary if you're well trained on the engine electronics and you can turn a good wrench to boot.

Overall, I don't know that people really give much thought to what a global economy really means. To me, it means that the more integrated the world's economies become, if my industry is gradually being displaced in my country of origin for whatever reason, then I must either be willing to relocate to another country (worst case), be willing to accept less pay to do the same work, or I must re-invest myself career-wise. The times of the past, at least in a growing number of industries, where you largely did the same thing your entire worklife, have come and gone. At least some of us will not be doing the same job or even work in the same industry 20 years from now that we are working in today. Those who cling to the past will become victims of the future, especially here in the U.S.

Cjbaldw, that was VERY well said. Kudos.

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Last numbers I heard showed us with a surplus of insourced jobs, compared to the outsourcing. I'd like to see concrete numbers, myself, though.

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