Why Are The American People Mad? Maybe It Is Because Millions Of Their Jobs Have Been Lost To Outsourcing And They Aren’t Coming Back

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As you read this, there are tens of millions of people in China, India and dozens of third world nations who would love to do your job for one-tenth the pay.  They are willing to work 12 hours a day.  They don’t expect a benefits plan or a pension package.  They aren’t going to waste countless hours chatting on their cell phones or updating their Facebook profiles.  All they want is a chance.  And increasingly, the big global corporations that dominate the world economy are giving it to them.  It is called outsourcing, and if you don’t believe that it can happen to your job, you might want to think again.  It is not just Americans who are chasing after the American Dream these days.  We now live in a global economy with a global workforce and the rules of the game have fundamentally changed.

 

It doesn’t matter if you don’t like it. 

The truth is that the big global predator corporations that dominate the global landscape don’t care about you.

They don’t exist to give you a good job.

They don’t exist to enable you to pay your mortgage.

They don’t exist to put your kids through college.

They don’t exist to provide you with a big, cushy pension in your old age.

They exist to make money.

So why should they hire you, when they can hire someone else on the other side of the world for one-tenth the pay?

Why should they hire you, when countries on the other side of the globe will allow them to hire workers in an environment of extremely low taxes and almost no regulations?

Why should they hire you, when a worker in a third world nation is not going to require health insurance, employer contributions to Social Security and unemployment, a benefits package or a pension plan?

The truth is that it is very complicated and it is very expensive to hire an American worker.

Millions upon millions of jobs have already been offshored and outsourced, and tens of millions more are about to be sent out of America.  In fact, Princeton University economist Alan S. Blinder estimates that 22% to 29% of all current U.S. jobs will be offshorable within two decades.

All of our technological advances have made the world a very small place.  In this new global economy, you had better get to know your competition.

So just who are you competing against?  Well, in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.

Are you willing to work for 86 cents an hour?

No?

You had better start getting used to the idea.

For decades, the American people voted for politicians from both parties who promised us that “free trade” and “the global economy” would be so good for us.

But what they didn’t tell us is that our standard of living would inevitably be forced down to the level of all the other workers around the world as labor became a global commodity.

So now we reap the bitter harvest of our poor decisions.

For example, Detroit was once the 4th largest city in the United States, and it was a shining example of how U.S. heavy industry was providing millions of jobs for middle class Americans.  But just look at it today….

The millions of jobs that have been offshored and outsourced simply are not ever coming back.

During the really bad 2001 recession, the U.S. economy lost 2% of its jobs and it took four years to get them all back.  But this time, the U.S. economy has lost more than 5% of its jobs and there is no sign that the bleeding of jobs is going to stop any time soon.

Yet the top politicians in both parties continue to insist that our trade policies are fine.  They have no problem with the fact that we ship millions of jobs overseas and that the lopsided tariff and trade agreements the U.S. government has entered into have caused our trade deficit to balloon to ridiculous proportions. 

The truth is that people need to start talking about the high cost of “free” trade.  The video posted below starts a little slowly, but by the end it will have your jaw hitting the floor….

But nobody takes all of this seriously enough.  The once great American economic machine is being dismantled in slow motion, and nobody seems to really care.  Now NBC is even promoting a new television show called “Outsourced” which makes a big joke out of it.

But the tens of millions of Americans who are currently out of work probably are not going to think it is too funny.

In fact, an increasing number of American people are getting really mad.

Why?

Well, because they are finding it really difficult to provide for their families.

According to a poll taken in 2009, 61 percent of Americans “always or usually” live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.

But an increasing number of Americans are not even doing that well and have gone flat broke.  More than 1.4 million Americans filed for personal bankruptcy in 2009, which was a 32 percent increase over 2008.

The truth is that the rich are getting richer and the poor are getting poorer at an alarming rate.

The bottom 40 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.

1 percent of the pie for 40 percent of the population?

How long do you think that is going to last before people start getting really pissed off?

The American people don’t need more handouts though – what they need are good jobs.

But oops – we shipped all their good jobs to China and India.

The truth is that it doesn’t take a genius to figure out why the average time needed to find a job in America has risen to a record 35.2 weeks.

There simply are not nearly enough jobs in 2010.

Big corporations don’t want to hire American workers anymore.

In the new globalist system, there are far too many much less expensive options.

The new playing field is governed by organizations with initials such as NAFTA, GATT and WTO and in this new game American workers are the big losers.

Perhaps you are reading this and you think that I am wrong.

Well, I have a challenge for you.

In the comments section below, please answer this question:

Why in the world should big global corporations hire American workers when they are allowed to hire good workers on the other side of the world for one-tenth the pay and they don’t have to give them benefits or a pension either?

Hopefully someone can convince me that I am wrong, because I simply cannot see a light at the end of the tunnel for middle class American workers right now.

   
  • Michael Barlow

    Greed!

    Unemployed for 10 months!

  • Concerned Reader

    The only argument that I can say in regards to why the global corporations should provide jobs for the American people is the fact that when one of these global corporations wreaks their financial standing in the economy, they run to the American government for bailouts. The American people as taxpayers then have to spend what little assets they still have left to save these corporations from their own mistakes. For example, General Motors laid off so many American workers that the tax payers should have told the CEO of that company that they should ask the government and people of such places as Mexico and China to bail them out. This is just one example among many that I could have chosen.

    The fact of the matter is that if the American worker is too expensive to keep employed, we are too expensive to bailout these companies who employ foreign workers. When a CEO of a global corporation claims that American workers are too expensive, we should say, “Global corporations are too expensive to save from their own mistakes. Good bye and good luck with your endeavors. You wont be getting a red cent from any of us!”

  • Justa Guy

    It has always been obvious to me that “free trade” could only result in our standard of living being continually lowered until we became even with these foreign workers. It is like having 2 tanks of water, one very much higher than the other. Connect the two tanks together, and inevitably the water from the greater tank will flow to the lesser tank until the greater tank is brought down to even out with the lesser. The problem is made worse by the idea that their labor populations are so much larger than ours, making their tanks very wide, and ours very narrow. This would result in our tank losing many feet of water just to raise theirs by 1 inch. Quite a sucking going on there. There will be no American recovery in the foreseeable future due to simple supply and demand: Lots of jobs leave America, lots of people out of work. Lots of people out of work means lots of people with no disposable income. No income, no spending, no new production, no need for hiring. Surplus of workers allows companies to cut pay (since you can’t leave if there aren’t any jobs), or offer lower wages for any jobs available. That means less disposable income=less spending. And with all the surplus workers, companies can now layoff and rehire new people at a lower salary, who will have less disposable income than their predecessors=less spending=no need for new production. And don’t believe it when they say “times are tough, we have to lay off”. The executives of these companies always seem to rake in tons of dough, even though they “have to have” layoffs. The only hope this country had to save our jobs was in Americans buying Made in USA goods, which most never did. Now a lot of the groceries in the supermarket aren’t even Made in USA. It is probably way too late to turn things around now, but I suggest everyone try to start checking every item they buy for Made in USA. If it doesn’t say it, don’t buy it.

  • Greg

    America was made prosperous for a reason and that reason was to bring in the New World Order. Our destiny is to now be brought low and our future is not pretty. There is no reason for the same people who control the finances of the world and who created America’s wealth to pay Americans more than the rest of the world. This is not about the corporations; it is about the true money and power controllers behind the corporations.

    A better question – why should God bless this nation when we murder our own children by the millions, spread sexual immorality and perversion around the world, preach a false Christian gospel from our biggest churches and “Christian” broadcasters and spread the false gospel around the world, consume tons of mind-altering illegal drugs and generate violent drug gangs all over the world, murder millions of people through our war machine, etc.? The list could go on for pages and I say we have some very bad crops to reap. The best thing Americans can do is to allow this impending misery to draw our hearts back to what really matters. Repent, believe in the Lord Jesus Christ and don’t spend eternity in a much worse place than America is becoming.

  • Justin Time

    Just wonder that if this is being thought out as to who will have any discretionary income left to purchase their goods and services.

    I hope these Corporations end up eating themselves.

  • Tired Ovitall

    Because we care about the work we do. The company I work at just blew $70,000 for some web development from India. Of course, I suggested that they do weekly code reviews and the young snots here trying to make a name for themselves thought it was foolish. Of course, the head of the project, a native of India, didn’t see a need for it either. Well, a few months later and guess what? The code is garbage and is being re-written. All of it. Why? Well, after doing a little digging I found that this “company” was recruiting web developers, and I was lucky enough to find a forum that one of the developers was asking questions on. The guy hadn’t even done any java coding before. WTF???

    And, we had this supposed “project leader” who was a native of India hire other consultants that shared his heritage. And what I noticed about each one was the fact that their didn’t know anything about what we hired them to do. The majority of these people learn on our dime. Just like the project leader they hired here, their credentials are usually false. I took the time to Google one sentence from this guys resume, and what did I find? I found someone else’s resume online, and this guy took 75% of his resume verbatim and used it in his. And, the remaining 25% that wasn’t, I found on two other resume’s online. And here’s the best part, one of them was a sample resume.

  • Duke

    A big thanks to Bill Clinton for passing NAFTA and the sucking sound of all those American jobs going out of the country. Thanks to Clinton also for repealing the Glass Stegall act to allow banking casinos and derivatives to bring down the economy and forcing lenders to lower their lending standards so all poor people can have a house. We probably need to set up tariffs and penalize companies for outsourcing jobs to be somewhat competative in the world, but that has bad consequences for the economy also. No really good solution.

  • Gary

    Like I have said many times-we need to tax the rich, tax (close all loopholes) the corporations and spread the wealth. If corporations out source-tax the hell out of them. The answer is so obvious. There is way too much money in way too few hands mainly thanks to the republican policies along with a little help from the dems.

  • Owen

    Like Greg, I see the fingerprints of the NWO all over this. It is a house of cards, as Justin Time pointed out, in which there will be very few buyers left out there who can afford to get buying. I am convinced that we are seeing the fulfillment of another Bible prophecy: he conspiracy of the rich to defraud the workers their just wage. Look it up: James 5:1-6. I fully expect that the actions of these greedy individuals is purposely designed to cause wide scale misery, death and destruction in order to reduce the world’s current population. If we would just stick together, we could toss out the traitors, strip ill-begotten riches from the wealthy (think nationalizing the Federal Reserve) and raise our tariff rates to create jobs in America once again.

  • Buck

    Don’t forget the origins of NAFTA came during George H.W. Bush’s watch. Just like U.N. Agenda 21. To say Clinton is the only culprit of either of these is misleading and further G.W. renewed the NAFTA agreement years later as I recall saying he did not want to “rock the boat”. When are people going to get the picture of how both major parties are detrimental to the working man/woman in this country?

    This country does not know what free trade really is. The only free trade we have is in black markets.

  • Dave

    I understand people’s anger over this issue, but let’s not exonerate the American people of their role in this tragedy.

    Some of the justifications for corporations moving jobs overseas are:

    1) lower labor cost.
    2) lower benefits costs.
    3) lower taxes.
    4) less environmental regulations.

    How do we sum this up and give it a name?

    In other words, one of the reasons American corporations moved jobs overseas was to escape the high cost of American democratic socialism.

    We don’t live in the United States of America anymore. For too long it has been The United Democratic Socialist States of America.

    Many in this nation, democrats and republicans alike, elect socialist congressmen, and vote to send socialists into executive positions.

    American consumers demand choice and competition. If they don’t like one car, they can go to a different dealership.

    But how is a corporation going to escape the high cost of socialism when there is only one socialist American government?

    Easy, you move out of harms way, meaning, you move production out of the country. It’s a defensive move.

    It’s easy for the American people to rail against corporate America for exporting our manufacturing base. If they want to know who to blame, perhaps they should first examine their own voting record, and look in the mirror. We are dealing with a shallow public mindset, and a form of hypocrisy.

  • Tim

    A lot to agree with here. Been with my current company over 12 years. Last pay raise I got was six years ago. The last two years we’ve had our salaries actually reduced. 401K matching, vacation time, company stock purchase plans, actual pay, all gone or reduced. Me and buddies figure it to be about ~14% overall reduction. At my level I was averaging a 10% annual bonus (which are now a vague memory).

    All in all, I am NOW working longer hours, at a much less satisfying job (it actually sucks), for about 20-25% less than I was making just 3 years ago.

    My company was once a very highly respected company for the way it treated employees and the loyalty that created. We were long term focused, made great products. but now? ha! Upper management pushes harder and harder so they get their *quarterly* bonuses. Below VP level, people, and I mean a LOT of people are now pushing 55-60+ hour weeks for fear of losing their jobs.

    With all this said – I still consider myself LUCKY. Even with the ~20% pay reduction, I still make very good money. But one thing has drastically changed. I no longer circulate my money. It all goes into savings. Every spare penny. And while this is good for me, we all understand it is at the expense of the local economy.

    The saddest thing is to see my kids now graduating from college (two in the last four years!). They are entering a dismal job market with no hope of “true” recovery in the foreseeable future.

  • Alex

    I am currently in the process of “training” my offshore Indian replacement for my current position in technology. It’s true that they are much cheaper, but the claims that they work harder for a chance are not.
    These guys are slow to respond to emails and rarely take initiative. They are also flaky in their work schedules. It’s been a few weeks and I have already had many people tell me they are genuinely worried about the future of the organization.
    I am a contractor in technology. I don’t require a pension, health benefits, or job security. I do require reasonable pay that allows me to live in the area that I work. I have a Master’s degree and 12 years experience and when I have a job I work hard.

    But it’s not about me, it’s about finding someone in India that is willing to do a lousy version of what I do for 1/10 of the cost. Corporate managers are compensated based on short-term profits not long-term growth. Therefore, they have no incentive to keep jobs onshore which is more expensive in the short-term, but keeps key knowledge and strategy close by as well as strengthens the domestic market for the crap they sell. The more jobs they help create, the more people are willing to buy their widgets. By outsourcing, they are losing quality thus reducing brand perception, moving knowledge and strategy offshore, and risking the security of customer data. We need laws that strengthen the nation’s economy and business in the long run, not give corporate managers a chance to make a fast buck!

  • Tomkat

    There are many sides to this. What I see mainly (besides WS Greed) is people just plain spent too much money. Remember 2004-2008? 80% of the cars on the road were BRAND NEW. Amazing. And anyone who was in college in any of the years of 1989-2008 knows that was a spending FRENZY on many campus’: trips, cars, drinking, & mega debt for some. High ticket debt (house, car, education) can end poorly, so to speak

  • Reymont

    The question was “Why in the world should big global corporations hire American workers when they are allowed to hire good workers on the other side of the world for one-tenth the pay and they don’t have to give them benefits or a pension either?”

    The answer is because if they don’t they will go out of business. Picture an American company that makes TVs. Their competitors in Europe and Asia are paying laborers in China 88¢ an hour, while our company is stuck paying $22 an hour in Iowa. Who is going to sell more TVs?

    There is no stopping the outsourcing; it wasn’t any one person’s decision or one political policy. Those people in China are STILL going to make TVs, with or without our involvement, and markets around the world will still buy them. If we want ANY piece of that money to come here, if we want to at least keep an American brand name on them, then we have to outsource the jobs. Otherwise, it’ll be a Chinese or a German brand name on there, and we’re out of the game entirely.

    The only alternative to outsourcing is walling off our economy, and saying that we can only buy American goods and can only sell things to other Americans. Then we’re just passing around the same old dollars, never bringing any new ones into the country, while the rest of the world enjoys rising economies.