While doing some research today I came across this very interesting post by Ezra Klein on new statistics on poverty in the US, titled Our Wonderous Economy.
http://ezraklein.typepad.com/blog/2006/08/our_wondrous_ec.html#comment-21750975
I encourage you to take a look at it as well as the comments that are posted. It's make for an interesting debate.
Wednesday, August 30, 2006
Monday, August 28, 2006
The Golden Era of Profitablity
Ben Bernanke, the current Fed Chariman recently spoke at an economics conference in Jackson Hole, WY. He remarks were made at a time when congress is at least contemplating tariffs on China for its monetary policy of keeping the Yuan artificially low and many of it's predatory trade practices.
“The emergence of China, India and the former communist-bloc countries implies that the greater part of the earth’s population is now engaged, at least potentially, in the global economy. There are no historical antecedents for this development. “
Bernanke said Christopher Columbus’s voyage to the New World ultimately led to enormous economic change, but it took centuries for the New and Old Worlds to economically integrate.
“In contrast, the economic opening of China which began in earnest less than three decades ago, is proceeding rapidly and, if anything, seems to be accelerating,”
The natural reaction of those so affected is to resist change, for example, by seeking the passage of protectionist measures.The challenge for policy-makers is to ensure that the benefits of global economic integration are sufficiently widely shared — for example, by helping displaced workers get the necessary training to take advantage of new opportunities."
President Bush believes that math and science education will help offset the job losses occuring in the US. What he fails to mention is these jobs too can be offshored to cheap labor unless fair and effective policies are put into place.
One would think that Ben, our chief economist, would look at the details in the big picture he outlines.
For addtional commentary look at this blog, http://zane.typepad.com/ccuceo/2006/08/ben_bernanke_on.html
“The emergence of China, India and the former communist-bloc countries implies that the greater part of the earth’s population is now engaged, at least potentially, in the global economy. There are no historical antecedents for this development. “
Bernanke said Christopher Columbus’s voyage to the New World ultimately led to enormous economic change, but it took centuries for the New and Old Worlds to economically integrate.
“In contrast, the economic opening of China which began in earnest less than three decades ago, is proceeding rapidly and, if anything, seems to be accelerating,”
The natural reaction of those so affected is to resist change, for example, by seeking the passage of protectionist measures.The challenge for policy-makers is to ensure that the benefits of global economic integration are sufficiently widely shared — for example, by helping displaced workers get the necessary training to take advantage of new opportunities."
President Bush believes that math and science education will help offset the job losses occuring in the US. What he fails to mention is these jobs too can be offshored to cheap labor unless fair and effective policies are put into place.
One would think that Ben, our chief economist, would look at the details in the big picture he outlines.
For addtional commentary look at this blog, http://zane.typepad.com/ccuceo/2006/08/ben_bernanke_on.html
Trucks
Ford made an announcement last week that plans to speed up closing some factories in the US due to slowing sales of their light truck lines and SUVs. Now imagine that Chairman Bill Ford couldn't forsee that a naation at war with skyrocketing fuel costs just aaren't intersted in buying gas guzzlers. It was also annnounced due to the slow sales of these vehicles that it is ceasing production between now and the end of the year on ten assembly lines due to balooning inventories.
How many more American jobs are being laid waste due to the shortsightedness of our business leaders in the US?
How many more American jobs are being laid waste due to the shortsightedness of our business leaders in the US?
Tuesday, August 22, 2006
China Exploits NAFTA
As if the NAFTA agreement and shipping off our jobs to China wasn't bad enough for this country, it seems that China has found a way to exploit our NAFTA agreement that we entered into with both Mexico and Canada. China has contracted with Mexico to enhance their deep channel ports to bring goods into the US. By utilizing cheap labor in Mexico's Baja penisula, China will be bypassing our ports, American labor, and our security to bring their goods into our country through the back door. Now that's a trading partner for you!
When will our policy makers step up and promote fair trade...................
When will our policy makers step up and promote fair trade...................
Friday, August 11, 2006
I found an interesting blog worth your attention if you want to examine the cost of outsourcing from the point of view of where the jobs going. Check out http://navs.wordpress.com/2006/08/06/economics-of-outsourcing/
Outsourcing Tutors
I came across an article yesterday that really disturbed me. It seems that the tutoring of our children is now being outsourcing to India as well. Online tutoring services are popping up in India. It only takes a video camera attached to a computer to make it work. The article citied huge cost savings. The typical offhshored tutor charges $100/month, where as tutors in the US may be as much as a $100 per session.
I wonder if the parents are actually examining the real costs associated with tutoring their kids offshore. Just to identify a few of the not so apparent cost. The loss of another US job, lowering the tax base, thus affecting the quality of education that their children receive. More importantly, what will the children do when they complete their education since we are continually supporting companies that take our jobs. First it was manufacturing, we were told that's good for the economy as their will be more service and knowledge based jobs. Now their exporting more and more knowledge based jobs. What kind of jobs will be left for our children as congress want to give the service based jobs to the illegal immigrants.
Something to ponder...........
I wonder if the parents are actually examining the real costs associated with tutoring their kids offshore. Just to identify a few of the not so apparent cost. The loss of another US job, lowering the tax base, thus affecting the quality of education that their children receive. More importantly, what will the children do when they complete their education since we are continually supporting companies that take our jobs. First it was manufacturing, we were told that's good for the economy as their will be more service and knowledge based jobs. Now their exporting more and more knowledge based jobs. What kind of jobs will be left for our children as congress want to give the service based jobs to the illegal immigrants.
Something to ponder...........
Tuesday, August 08, 2006
Retirement Accounts
Before recessing for summer vacation, who can tell when they are on vacation when they were in session less than 90 days so far this year, continued the erosion of the middle class. It seems they passed the long overdue pension reform bill. Have they gone so far as to kill company funded retirement accounts all together?
Let's exam some of the key points of the bill. Companies must have there funds fully funded in the next seven years. That means as of today these companies must come up with over $22 billion collectively just to get back to where they should be. Can you see more jobs being exported to fun it?
It give airlines extra time to fund their accounts, all when they are going to the courst to break thier pension funds for the sake of competetiveness, United Airlines is a prime example. Some companie smay have up to 30 years to bring up their balance to proper levels.
It does have a positive aspect when it comes to these over paid top execs, it severely curtails their participation if their company has underfunded thier pension accounts by more than 20%.
Will these requirement meant to protect the worker actually do more harm?
Let's exam some of the key points of the bill. Companies must have there funds fully funded in the next seven years. That means as of today these companies must come up with over $22 billion collectively just to get back to where they should be. Can you see more jobs being exported to fun it?
It give airlines extra time to fund their accounts, all when they are going to the courst to break thier pension funds for the sake of competetiveness, United Airlines is a prime example. Some companie smay have up to 30 years to bring up their balance to proper levels.
It does have a positive aspect when it comes to these over paid top execs, it severely curtails their participation if their company has underfunded thier pension accounts by more than 20%.
Will these requirement meant to protect the worker actually do more harm?
Thursday, August 03, 2006
Because It Looks Good on the Books
My brother in law is a VP of Product Management for a major software development firm. They employ thousands across their various products lines. He pretty much knows where I stand on issues of offshoring. This past weekend, I had the opportunity to spend some time with him and I adked him falt out what percentage of his development employees were in India. His first response was "why do you ask." I replied "I'm just curious." Finally, he said about 25%.
I wasn't surprised at the remark interestingly enough, but his next few statements floored me. He said "but they really aren't productive so we really don't save any money, they may evan cost us more in the long run." My next question of course was "Then why do it?" Here's the punch line "because it looks good on the books."
His company displaces thousand of American jobs because "it looks good on the books".
I wasn't surprised at the remark interestingly enough, but his next few statements floored me. He said "but they really aren't productive so we really don't save any money, they may evan cost us more in the long run." My next question of course was "Then why do it?" Here's the punch line "because it looks good on the books."
His company displaces thousand of American jobs because "it looks good on the books".
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