Sunday, January 29, 2006

The Outsourcing of America


Tell me, when is the last time you called a company and talked to a representative that was actually in the United States?

Are you sure?

Because more and more companies are moving their customer service to India and spending millions of dollars teaching these people to speak flawless English. They even chose American-sounding names so that the customers won't suspect they are talking to someone in India (some names work better than others, of course. If you chose the name Moses Garcia, I'm talking about you.)

Outsourcing is good for the bottom line of Corporate America. The average call center employee in India makes in one day what the average citizen of India would earn in one week.

It's also what their American counterparts working that same call center job would make in one hour. It's cheap labor, and nothing else.

Outsourcing is ruining this country. We don't just outsource call center jobs; we outsource data entry, accounting, and of course manufacturing. The reason your new sweatshirt is so cheap is because it was made by a 7 year old working in a sweatshop in Mexico for 70 cents a day. Now is some kid being forced into basically slavery hurting America? Well, no. But the fact is that kid working for 70 cents a day cost American jobs. That means that there are people unemployed and unable to purchase say, a new home, car, or other items. And that means that the stores and the manufacturers lose that profit. Which means that over time, they make less and less profit.

So both the retailer and the manufacturer cut back on labor because they are losing profit. And those labor cut backs mean that even more people don't have the income to buy the stuff, which means that there are more labor cuts...and so the cyle never ends as we get stuff cheaper and cheaper but have less and less money to buy it. Because the people that lose their jobs here means that there are less home sales, less car sales...less everything sales. Which means retail jobs are lost.

You get the picture, right?

Now let's add into the equation the fact that our military tanks are made in China. Yes, that China. The ones that have threatened to nuke us. The ones that are allied with Iran. In fact, our economy is being run by China because of the amount of money our government has borrowed from them.

Nervous? Good. You should be. If not, read this article.

Not only are we sending our jobs to foreign countries, we're staking our existence on them continuing to float our loans and sell our military the things that our soliders need. The United States is now the largest exporter of raw materials and the largest importer of finished products.

Congratulations, America. You now meet the definition of a third world country.

No comments: