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November 5, 2004 4:00 AM PST

Perspective: Out of sight, out of mind?

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Out of sight, out of mind?
I had been spending a lot of time thinking about the future of offshore outsourcing when one Yuta Tabuse turned up on my personal radar.

For those of you who are not hoops fanatics, Tabuse is a 5-foot-9-inch reserve who plays for the Phoenix Suns. Tabuse also happens to be the first Japanese national to make the roster of a National Basketball Association club.

As a fellow 5-foot-9er, I'm pulling for the diminutive point guard, though it makes no difference whether Tabuse goes down in NBA annals as a bust or as the second coming of Michael Jordan. Either way, his arrival on the American scene--along with that of other overseas-born players--speaks volumes about how economic globalization is fast changing old assumptions about the way things ought to work.

"The way things ought to work"--that's one doozey of an anachronistic phrase. So much so that it should be sandwiched on a garage shelf between a pet rock and a "Happy Days" poster of The Fonz. In the friction-free nirvana of the Internet age, such grudging expressions of entitlement are supposed to be tres passe. But don't tell that to NBA journeymen, or you risk a knuckle sandwich. These folks are nervous and upset.

The underlying structural changes that forced the subject onto the national agenda are still around.
Nervous because foreign-born players are the new must-have commodity for every aspiring professional basketball club. Upset because so many Serbs and Russians and Turks are popping up all over the league, and that presents a threat to their coveted multimillion-dollar jobs.

This doesn't qualify as a textbook example of offshore outsourcing. (If anything, it's an example of offshore insourcing!) But the raw emotion that explodes when "American" jobs get handed to foreign-born talent is familiar enough. I see it in the outpouring of e-mail I receive each time I write about the export of computer jobs.

Oddly enough, offshoring hardly figured in the presidential election. More folks appeared interested in the outcome of the Red Sox-Yankees playoff series than they were about the prospect of more software jobs moving to Bangalore, India. Of course, so much of the offshoring debate between the candidates was phony that you could excuse the electorate for not paying attention.

Academic elites are of two minds (about outsourcing)--as is the technology industry, with senior management and its employees as divided as ever.

The Bush administration, which promotes itself as being friendly to free-traders, has long followed a fairly protectionist policy. And while John Kerry was keen on winning support from organized labor, he wasn't planning radical changes. To be sure, a Kerry administration would have expanded terms of the Trade Adjustment Assistance program to help workers displaced when their jobs got outsourced overseas--but hardly enough to qualify him as the second coming of Leon Trotsky.

However, while the political discussion was informed more by style than by substance, nobody who works in the computer business believes that this controversy has even remotely found a resolution. The underlying structural changes that first forced offshore outsourcing onto the national agenda still exist. The palpable fear and uncertainty you find among rank-and-file employees is worse than before. And true to form, nobody in a position of authority is treating the subject in a serious, systematic way.

Instead, we receive caricatures of positions. Maybe I shouldn't judge the hired help in the nation's capital so harshly. After all, the academic elites are of two minds--as is the technology industry, with senior management and its employees as divided as ever. (Red sweatshirts, blue sweatshirts, anyone?)

So what's the answer? I'm going to reverse the tables this time. What do you think needs to be done? Head to my offshoring blog, and chime in. No screeds, please. I'm going to package together the 25 best answers and send them to the white building at 1600 Pennsylvania Ave. just before the inaugural ball.

In the meantime, the only sure thing is that the migration of U.S. technology jobs will increase--as will the din. Who knows? By the time this country figures out what it wants to do, Yuta Tabuse might even be a household name.

Biography
Charles Cooper is CNET News.com's executive editor of commentary.

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Outsourcing
by November 5, 2004 6:00 AM PST
I think the United States should put some strict guidelines in place regarding outsourcing. These guidelines should affect all United States based corporation as well as corporations with a significant presence in the United States. While I acknowledge & understand the concerns of people who assert that government should not interfere with private businesses. I completely agree. However, companies like General Motors, Microsoft, etc are not private businesses. These are public corporations! Public companies enjoy many benefits & freedoms that private businesses cannot realize, but this should come with more responsibility to the public which supports them.
I would like to see us restrict outsourcing by public companies only to democratic countries. We should also disallow them to outsource to any country for which the United Nations has condemned the government for human rights violations.
While I don?t like the idea of having my job outsourced, I would feel a lot better about it going to some place like India than China. I have seen programs on the Indians who have taken some of the good jobs from the U.S. Even though they make much less, the cost of living is less so they live in relative luxury. The same cannot be said for China, where workers are virtual slaves. We should not be trading with this country at all. It does indeed increase our standard of living by providing much lower cost goods, but we are, in my opinion, sacrificing those people for our own gain.
Reply to this comment
Nice feedback
by charlie cooper November 5, 2004 8:46 AM PST
Hi James,

Nice feedback. But allow me to play devil's advocate. You talk about the responsibilities that go hand-in-hand with being a public company. But do you really think the courts would allow a law restricting what publicly traded corporations can do -- just because they are public? I'm not a constitutional scholar but I have big doubts about that.

Regards
Outsourcing
by November 5, 2004 6:00 AM PST
I think the United States should put some strict guidelines in place regarding outsourcing. These guidelines should affect all United States based corporation as well as corporations with a significant presence in the United States. While I acknowledge & understand the concerns of people who assert that government should not interfere with private businesses. I completely agree. However, companies like General Motors, Microsoft, etc are not private businesses. These are public corporations! Public companies enjoy many benefits & freedoms that private businesses cannot realize, but this should come with more responsibility to the public which supports them.
I would like to see us restrict outsourcing by public companies only to democratic countries. We should also disallow them to outsource to any country for which the United Nations has condemned the government for human rights violations.
While I don?t like the idea of having my job outsourced, I would feel a lot better about it going to some place like India than China. I have seen programs on the Indians who have taken some of the good jobs from the U.S. Even though they make much less, the cost of living is less so they live in relative luxury. The same cannot be said for China, where workers are virtual slaves. We should not be trading with this country at all. It does indeed increase our standard of living by providing much lower cost goods, but we are, in my opinion, sacrificing those people for our own gain.
Reply to this comment
Nice feedback
by charlie cooper November 5, 2004 8:46 AM PST
Hi James,

Nice feedback. But allow me to play devil's advocate. You talk about the responsibilities that go hand-in-hand with being a public company. But do you really think the courts would allow a law restricting what publicly traded corporations can do -- just because they are public? I'm not a constitutional scholar but I have big doubts about that.

Regards
Class War
by November 5, 2004 6:29 AM PST
This is now a class war, Charles. The well-paid but not very powerful engineers against the optioned and golden-handcuffed managers who must deliver on over-promised profits and productivity to Boards of unengaged but very highly rewarded non-participants and stockholders. This is about greed and position.

My advice to the more intelligent among you; it is time to do a John Galt.
Reply to this comment
Who is John Galt?
by November 8, 2004 10:01 AM PST
I recently saw an interview in which Intel CEO Craig Barret complained that our education system's failure to produce more engineers and scientists was hampering the country's competitiveness. The prior evening, I had attended a real estate class at Mission College just down the street from Intel headquarters. In this class of future realtors, 42 out of 44 students had come from high technology careers. There are similar statistics at Law and Business schools all over the country.
John Galt is alive and well. Unfortunately, our real life leaders seem to be just as oblivious to what's happening as Ayn Rand's fictional ones. Whether our society colapses as dramatically as the one in Atlas Shrugged depends on how blind all of us really are.
Class War
by November 5, 2004 6:29 AM PST
This is now a class war, Charles. The well-paid but not very powerful engineers against the optioned and golden-handcuffed managers who must deliver on over-promised profits and productivity to Boards of unengaged but very highly rewarded non-participants and stockholders. This is about greed and position.

My advice to the more intelligent among you; it is time to do a John Galt.
Reply to this comment
Who is John Galt?
by November 8, 2004 10:01 AM PST
I recently saw an interview in which Intel CEO Craig Barret complained that our education system's failure to produce more engineers and scientists was hampering the country's competitiveness. The prior evening, I had attended a real estate class at Mission College just down the street from Intel headquarters. In this class of future realtors, 42 out of 44 students had come from high technology careers. There are similar statistics at Law and Business schools all over the country.
John Galt is alive and well. Unfortunately, our real life leaders seem to be just as oblivious to what's happening as Ayn Rand's fictional ones. Whether our society colapses as dramatically as the one in Atlas Shrugged depends on how blind all of us really are.
Offshoring?
by tbeckner November 5, 2004 8:44 AM PST
What we are really talking about is the wholesale selling out of America, it's tax base, and the middle-class for Corporate Greed.
Reply to this comment
Offshoring?
by tbeckner November 5, 2004 8:44 AM PST
What we are really talking about is the wholesale selling out of America, it's tax base, and the middle-class for Corporate Greed.
Reply to this comment
Public assistance
by sunergeos November 5, 2004 9:48 AM PST
I use to complain loudly about the offshoring issue until I was reminded that this is exactly what happened when manufacturing starting going overseas. What have we done for manufacturing to keep it here in the USA and to keep the factory workers employed? It is the exact same model.

It's obvious that the collective thinking at the national level by the US Governement is to back corporate interest. Why would we allow offhsoring of our tech skills, but make the US population pay for US only perscription drugs? The benefactor is obvious.

My only idea is what has been already covered. Make assistance available for those who need training for a career change. My take on it is people should get the assistance that is equal to their years in service in the IT industry. A 45 year-old programmer who has been employed for 23 years as a programmer should get more assistance than a 25 year-old programmer who has only worked 4 years in the industry. I'm not sure how that would get implemented, but it seems fair to me - if that is still an objective.
Reply to this comment
Personal Responsibility
by David Arbogast November 8, 2004 7:32 AM PST
I seriously doubt that reeducation benefits will be paid by the government to IT workers because of a trend in offshoring. At some point, personal responsibility plays a role. No matter what field you work in, you should keep track of trends and future predictions so that you can be prepared for whatever happens. People caught unprepared suffer more than those who keep their eyes open. This is the concept of Personal accountability. I wouldn't support redistribution of tax dollars for this effort. I would prefer to distribute tax dollars to people who have a future vision and can create more business and jobs for other Americans.
View reply
Public assistance
by sunergeos November 5, 2004 9:48 AM PST
I use to complain loudly about the offshoring issue until I was reminded that this is exactly what happened when manufacturing starting going overseas. What have we done for manufacturing to keep it here in the USA and to keep the factory workers employed? It is the exact same model.

It's obvious that the collective thinking at the national level by the US Governement is to back corporate interest. Why would we allow offhsoring of our tech skills, but make the US population pay for US only perscription drugs? The benefactor is obvious.

My only idea is what has been already covered. Make assistance available for those who need training for a career change. My take on it is people should get the assistance that is equal to their years in service in the IT industry. A 45 year-old programmer who has been employed for 23 years as a programmer should get more assistance than a 25 year-old programmer who has only worked 4 years in the industry. I'm not sure how that would get implemented, but it seems fair to me - if that is still an objective.
Reply to this comment
Personal Responsibility
by David Arbogast November 8, 2004 7:32 AM PST
I seriously doubt that reeducation benefits will be paid by the government to IT workers because of a trend in offshoring. At some point, personal responsibility plays a role. No matter what field you work in, you should keep track of trends and future predictions so that you can be prepared for whatever happens. People caught unprepared suffer more than those who keep their eyes open. This is the concept of Personal accountability. I wouldn't support redistribution of tax dollars for this effort. I would prefer to distribute tax dollars to people who have a future vision and can create more business and jobs for other Americans.
View reply
outsourcing leads to innovation
by nehrlich November 5, 2004 12:35 PM PST
I wrote a blog post about this a few months ago (http://www.nehrlich.com/blog/2004/08/25#innovation_optimism). Here's my take. Outsourcing is less of a problem than automation. And both of them have the same root - people are expensive and shouldn't have to spend their time doing menial work. And I don't think that's a bad thing.

To quote my post:
"As more and more jobs disappear off the low end of the scale, either due to outsourcing or due to automation, that means more and more resources available to devote to innovation. Less muscle power, more mind power. The more minds you have working on a problem, the better. So more minds working on innovation means more productivity gains, which in turn frees up even more people to work on innovation, and we're in a nice little virtuous circle where the standard of living keeps on increasing for everyone."

Yeah, it's starry-eyed and optimistic. But it's what's been happening for 100 years (how many people were farmers 100 years ago?), and it will continue to happen whether we like it or not. If the economy were a zero-sum game, where a job sent overseas is a job lost forever, it'd be different. But it's not.

Note - I'm not an economist, so this is a layman's take on things. Any resemblance to legitimate economic ideas is purely coincidental.
Reply to this comment
and innovation is hardly a large job pool
by November 5, 2004 2:24 PM PST
while the argument that outsourcing lead to innovation is valid from a logical standpoint it's hardly a positive effect from a social-economic standpoint as the large pool of developers would need to innovate and produce innovations to the market.
First technology companies can hardly maintain a large pool of innovators. At the end how many innovations can they invest in compared to their ability to bring them to market.
Second how much innovation can the market sustain. Not that many at the same time.

I would definitely agree to be part of this innovation pool but at the same time I'm aware that the pool size is not big enough to fit in all of us with bachelor/master degrees with or without experience.

I'm not sure that in this race towards optimal returm, I'd be willing to hang myself with the exact same rope that I bought. I'd say: Free trade is right but only in a level-palying field.
View reply
outsourcing leads to innovation
by nehrlich November 5, 2004 12:35 PM PST
I wrote a blog post about this a few months ago (http://www.nehrlich.com/blog/2004/08/25#innovation_optimism). Here's my take. Outsourcing is less of a problem than automation. And both of them have the same root - people are expensive and shouldn't have to spend their time doing menial work. And I don't think that's a bad thing.

To quote my post:
"As more and more jobs disappear off the low end of the scale, either due to outsourcing or due to automation, that means more and more resources available to devote to innovation. Less muscle power, more mind power. The more minds you have working on a problem, the better. So more minds working on innovation means more productivity gains, which in turn frees up even more people to work on innovation, and we're in a nice little virtuous circle where the standard of living keeps on increasing for everyone."

Yeah, it's starry-eyed and optimistic. But it's what's been happening for 100 years (how many people were farmers 100 years ago?), and it will continue to happen whether we like it or not. If the economy were a zero-sum game, where a job sent overseas is a job lost forever, it'd be different. But it's not.

Note - I'm not an economist, so this is a layman's take on things. Any resemblance to legitimate economic ideas is purely coincidental.
Reply to this comment
and innovation is hardly a large job pool
by November 5, 2004 2:24 PM PST
while the argument that outsourcing lead to innovation is valid from a logical standpoint it's hardly a positive effect from a social-economic standpoint as the large pool of developers would need to innovate and produce innovations to the market.
First technology companies can hardly maintain a large pool of innovators. At the end how many innovations can they invest in compared to their ability to bring them to market.
Second how much innovation can the market sustain. Not that many at the same time.

I would definitely agree to be part of this innovation pool but at the same time I'm aware that the pool size is not big enough to fit in all of us with bachelor/master degrees with or without experience.

I'm not sure that in this race towards optimal returm, I'd be willing to hang myself with the exact same rope that I bought. I'd say: Free trade is right but only in a level-palying field.
View reply
Outsourcing should be banned
by imkain November 5, 2004 12:37 PM PST
Outsourcing should be banned since it destroys the entire motto of "Made in the USA" as well as it is very unpatriotic to outsource jobs to other countries without checking with the qualified people that work here first. Big business needs to understand that outsourcing will only cost them more in customers leaving, complaints, and customer satisfaction. If your business is in America then you need to hire people in America. This is the only way that the United States economy will rise back from the dot com disasters and bring back the money into this beloved country of ours.
Reply to this comment
Couldn't disagree more.
by David Arbogast November 8, 2004 7:22 AM PST
Banning outsourcing will do far more harm than good. When Oracle was allowed to pursue PeopleSoft, one of the reasons was that competition existed in the form of SAP, a German company. Assuming Oracle and SAP end up competing head to head, a ban on oursourcing in the US will force Oracle to pay at least 400%-600% more per hour for labor than SAP, assuming SAP takes advantage of low-cost outsourced development. In this scenario, the American company cannot compete, goes out of business, and far more jobs are lost than if American companies are allowed to compete fairly with the rest of the world.

The economy is global, and there is no avoiding it. The problem is not outsourcing. The problem is that the price of labor fell suddenly and dramatically. Attacking outsourcing will be bad for American companies and will ultimately raise the cost of American products.. including exports. We will not be able to compete with the rest of the world if we put ourselves at a disadvantage by adopting the emotional and irrational "ban outsourcing" philosophy.
View reply
Outsourcing should be banned
by imkain November 5, 2004 12:37 PM PST
Outsourcing should be banned since it destroys the entire motto of "Made in the USA" as well as it is very unpatriotic to outsource jobs to other countries without checking with the qualified people that work here first. Big business needs to understand that outsourcing will only cost them more in customers leaving, complaints, and customer satisfaction. If your business is in America then you need to hire people in America. This is the only way that the United States economy will rise back from the dot com disasters and bring back the money into this beloved country of ours.
Reply to this comment
Couldn't disagree more.
by David Arbogast November 8, 2004 7:22 AM PST
Banning outsourcing will do far more harm than good. When Oracle was allowed to pursue PeopleSoft, one of the reasons was that competition existed in the form of SAP, a German company. Assuming Oracle and SAP end up competing head to head, a ban on oursourcing in the US will force Oracle to pay at least 400%-600% more per hour for labor than SAP, assuming SAP takes advantage of low-cost outsourced development. In this scenario, the American company cannot compete, goes out of business, and far more jobs are lost than if American companies are allowed to compete fairly with the rest of the world.

The economy is global, and there is no avoiding it. The problem is not outsourcing. The problem is that the price of labor fell suddenly and dramatically. Attacking outsourcing will be bad for American companies and will ultimately raise the cost of American products.. including exports. We will not be able to compete with the rest of the world if we put ourselves at a disadvantage by adopting the emotional and irrational "ban outsourcing" philosophy.
View reply
Will you even get 25 suggestions?
by OlShue November 5, 2004 1:50 PM PST
I think you're being pretty optimistic when you expect to get 25 thoughtful suggestions from C-Net readers. Despite the consistent exceptional content and analysis here, I doubt you'll find that thoughtful quality is mirrored from your average contributing reader. Ironically, I think you'll receive a much more insightful response from a groupthink venue like Slashdot than from the impetuous contrarians you find here.

If you?re serious about soliciting thought-provoking suggestions, then I would propose you engage your readers for longer than a week on your blog and get the other C-Net contributors/editors involved in a discussion with the readers, providing the reader with enough feedback so as to actually provoke the readers to offer more than parroted dogma.
Reply to this comment
Will you even get 25 suggestions?
by OlShue November 5, 2004 1:50 PM PST
I think you're being pretty optimistic when you expect to get 25 thoughtful suggestions from C-Net readers. Despite the consistent exceptional content and analysis here, I doubt you'll find that thoughtful quality is mirrored from your average contributing reader. Ironically, I think you'll receive a much more insightful response from a groupthink venue like Slashdot than from the impetuous contrarians you find here.

If you?re serious about soliciting thought-provoking suggestions, then I would propose you engage your readers for longer than a week on your blog and get the other C-Net contributors/editors involved in a discussion with the readers, providing the reader with enough feedback so as to actually provoke the readers to offer more than parroted dogma.
Reply to this comment
Outsourcing: A Benefit to Society
by DreamsInChrome November 5, 2004 7:52 PM PST
People forget that there are positives that are a direct result of outsourcing. People also forget a primary law of business: The first responsibility of a business is to turn a profit for its investors. Should that profit be compatible with other obligations, including human rights or domestic jobs, it is fine for that business to persue them, however, when anything prevents said business from profiting, it is the obligation of that business to remove those obstacles to its profit.

The positives that can be had from outsourcing include a more competitive market, and better education. If the United States is interested in keeping jobs stateside, we must first be able to supply an adequate work force that is properly trained and educated. If enough people get scared that their children won't have jobs as a result of outsourcing, they will do their best to insure of that better education for their children.

Regarding the improved market conditions that happen as a result, the government should never regulate how people buy and sell products. The consumer does a good enough job of that on their own. If consumers are willing to pay a premium for products made domestically, the market will reflect that. If there is enough demand for domestic products, more companies might start bringing jobs back to the states. But if price is the only concern, one must expect outsourcing to continue until we as a nation can become more competitive overall.
Reply to this comment
Education? So we'll have smart unemployed
by TheMidnightCoder November 9, 2004 6:56 AM PST
Big business is not off shoring due to lack of education here (though many use it as an excuse), it's purly because of labor costs. Going out and getting a phd in computer sciences is still not going to get you a programming job, just more debt.
View reply
not a benefit to OUR society
by aabcdefghij987654321 November 9, 2004 9:40 PM PST
We already have an adequate work force that is properly trained and educated.

What we do NOT have is an adequate work force that is properly trained, educated, and able to make a decent living on $10k a year.
View reply
Outsourcing: A Benefit to Society
by DreamsInChrome November 5, 2004 7:52 PM PST
People forget that there are positives that are a direct result of outsourcing. People also forget a primary law of business: The first responsibility of a business is to turn a profit for its investors. Should that profit be compatible with other obligations, including human rights or domestic jobs, it is fine for that business to persue them, however, when anything prevents said business from profiting, it is the obligation of that business to remove those obstacles to its profit.

The positives that can be had from outsourcing include a more competitive market, and better education. If the United States is interested in keeping jobs stateside, we must first be able to supply an adequate work force that is properly trained and educated. If enough people get scared that their children won't have jobs as a result of outsourcing, they will do their best to insure of that better education for their children.

Regarding the improved market conditions that happen as a result, the government should never regulate how people buy and sell products. The consumer does a good enough job of that on their own. If consumers are willing to pay a premium for products made domestically, the market will reflect that. If there is enough demand for domestic products, more companies might start bringing jobs back to the states. But if price is the only concern, one must expect outsourcing to continue until we as a nation can become more competitive overall.
Reply to this comment
Education? So we'll have smart unemployed
by TheMidnightCoder November 9, 2004 6:56 AM PST
Big business is not off shoring due to lack of education here (though many use it as an excuse), it's purly because of labor costs. Going out and getting a phd in computer sciences is still not going to get you a programming job, just more debt.
View reply
not a benefit to OUR society
by aabcdefghij987654321 November 9, 2004 9:40 PM PST
We already have an adequate work force that is properly trained and educated.

What we do NOT have is an adequate work force that is properly trained, educated, and able to make a decent living on $10k a year.
View reply
Outsource myself?
by November 11, 2004 3:11 PM PST
First, sending readers' suggestions to the White House is a waste of time. The Bush administration has already given outsourcing its seal of approval.

I'd like to respond to a few comments here. The gist of one is that outsourcing is an inevitable market reaction to the opportunity to cut costs, and that any attempt to manage the market is unnatural and doomed to failure. But markets are always managed to an extent by government, in favor of its businesses and citizens. It used to be that U.S. citizens and business had interests in common: more demand meant more work for U.S. workers. But our economy is no longer a closed system, and our corporations no longer ?American.? They hire the cheapest labor they can find, anywhere on earth, and still get to sell their products to U.S. consumers. When people in government say that outsourcing is good for America, they mean it?s good for their corporate contributors.

Another comment repeats the idea that only menial jobs are sent overseas. I?m not sure which tech industry PR department started floating the idea that programming and engineering are ?menial,? but they?ve done a great job of whitewashing the fact that ?knowledge work? ? the kind of skilled jobs that innovation is built on ? is being shipped overseas, or given over to foreign consultancies that import cheap visa workers. Everyone knew 30 years ago that manufacturing jobs were going overseas. Moving up skilled work like programming was supposed to help us stay a step ahead, but it?s become obvious that skill and education can?t compete with the low wages paid overseas.

And finally, the idea that Americans are natural entrepreneurs ? who can let go of these skilled jobs and ride some new wave of invention to prosperity ? is a crock. Especially coming from the Bush administration and its corporate allies. They have done absolutely nothing to inspire a new wave of innovation, instead protecting the status quo in energy, stem cell research, media consolidation, etc.. If Bush had used the trauma of 9/11 to rally this country to escape the grip of Middle East oil and build energy-efficient, smog free cars and power plants as soon as possible, we might have something to look forward to: a whole new field of research, and a whole new market. Instead countries like China, which have to be energy efficient to grow, are taking the lead.

Now that my programming career has bit the dust, maybe I can get a job driving a truck in Iraq for Halliburton. Anybody know where I can buy some cheap body armor?
Reply to this comment
Outsource myself?
by November 11, 2004 3:11 PM PST
First, sending readers' suggestions to the White House is a waste of time. The Bush administration has already given outsourcing its seal of approval.

I'd like to respond to a few comments here. The gist of one is that outsourcing is an inevitable market reaction to the opportunity to cut costs, and that any attempt to manage the market is unnatural and doomed to failure. But markets are always managed to an extent by government, in favor of its businesses and citizens. It used to be that U.S. citizens and business had interests in common: more demand meant more work for U.S. workers. But our economy is no longer a closed system, and our corporations no longer ?American.? They hire the cheapest labor they can find, anywhere on earth, and still get to sell their products to U.S. consumers. When people in government say that outsourcing is good for America, they mean it?s good for their corporate contributors.

Another comment repeats the idea that only menial jobs are sent overseas. I?m not sure which tech industry PR department started floating the idea that programming and engineering are ?menial,? but they?ve done a great job of whitewashing the fact that ?knowledge work? ? the kind of skilled jobs that innovation is built on ? is being shipped overseas, or given over to foreign consultancies that import cheap visa workers. Everyone knew 30 years ago that manufacturing jobs were going overseas. Moving up skilled work like programming was supposed to help us stay a step ahead, but it?s become obvious that skill and education can?t compete with the low wages paid overseas.

And finally, the idea that Americans are natural entrepreneurs ? who can let go of these skilled jobs and ride some new wave of invention to prosperity ? is a crock. Especially coming from the Bush administration and its corporate allies. They have done absolutely nothing to inspire a new wave of innovation, instead protecting the status quo in energy, stem cell research, media consolidation, etc.. If Bush had used the trauma of 9/11 to rally this country to escape the grip of Middle East oil and build energy-efficient, smog free cars and power plants as soon as possible, we might have something to look forward to: a whole new field of research, and a whole new market. Instead countries like China, which have to be energy efficient to grow, are taking the lead.

Now that my programming career has bit the dust, maybe I can get a job driving a truck in Iraq for Halliburton. Anybody know where I can buy some cheap body armor?
Reply to this comment
An Answer for US Companies re: Outsourcing
by November 12, 2004 11:13 AM PST
US companies need to confront the brutal facts of the situation that each finds itself in, particularly focusing on profitable growth. We are strong on innovation and somewhat weak on the perspiration side of developing and executing growth plans.

With all of the money the US government throws at economic development and business assistance, there should be something left to help midsize US based manufacturers develop and execute Growth Plans. There are emerging models for how this process works and The Bush Administration should seek these and the organizations that have developed them out. If we don't do this, nothing will setm the tide of outsouring and our economy will look like a sea of malls and Burger King franchises.
Reply to this comment
An Answer for US Companies re: Outsourcing
by November 12, 2004 11:13 AM PST
US companies need to confront the brutal facts of the situation that each finds itself in, particularly focusing on profitable growth. We are strong on innovation and somewhat weak on the perspiration side of developing and executing growth plans.

With all of the money the US government throws at economic development and business assistance, there should be something left to help midsize US based manufacturers develop and execute Growth Plans. There are emerging models for how this process works and The Bush Administration should seek these and the organizations that have developed them out. If we don't do this, nothing will setm the tide of outsouring and our economy will look like a sea of malls and Burger King franchises.
Reply to this comment
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