Job Exports?! BS! rev. 12.27.2009 Back to Lessons

Cut the Crap...... Nobody's Exporting Jobs.

From John Mauldin, quoting Business Week Magazine: 03.13.2004

"Business Week tells us that for each 1% rise in productivity we lose up to 1.3 million jobs a year. Of the 2.7 million jobs lost over the past three years, foreign out-sourcing has only been responsible for around 300,000 jobs, or around 11%."

But foreign out-sourcing has been responsible for about 90% of Democratic presidential candidate's rhetoric. John Kerry's line is the "Benedict Arnold CEOs."

Excellent article on the subject by Thomas L. Friedman, in the San Jose Mercury News, 02.27.2004, originally at
no longer seems to be available.

My opinions:

What really happened is this:

Here's the real deal, and you may be able to judge for yourself if what I'm saying is true. Give it a look.

Therefore, the expansion of the Internet around the world has allowed low-income countries with educated citizens to bid lower prices for work that can be done remotely. Companies are not exporting jobs in order to damage the US economy or deliberately put people in the US out of work, although there are many side-effects of this, and many are not good for the USA.
Stop blaming companies for "exporting jobs."
That's not what they're doing.
They're reacting to financial pressures and motivations provided by State and Federal Governments, and making financial decisions in their best interests: the best interests of their stockholders.

A lot of hot air has recently been blown about this subject in California, especially in light of the campaign to recall the current Governor, Gray Davis, and replace him with one of well over 100 candidates currently [08.22.03] running for election.

The one solution which nobody is talking about, and which, I feel must be talked about, is the only solution to consider:

What can the State of California [or insert the name of your state or country....] do to make it a more hospitable place for business. A place where businesses are easier to create, cheaper to run, easier to employ people, easier to do the paperwork needed to run the business and create "necessary reports", etc.... How to make California a state that's at least as attractive as its neighboring states, and hopefully more so, to do business in!

Cruz Bustamante has clearly stated his intent to do the opposite: his plan to solve state financial problems is to raise income taxes and taxes on business.

Governor Davis was bright enough to negotiate the longest-possible energy contracts for the State at the peak of the "Energy Crisis", when prices were highest. I don't know about you, but I think it's a bit stupid to NOT think of recalling a Governor with that lack of business sense.

Over the past ten or more years, many tax-paying companies have left California. Cruz Bustamante wants to raise the taxes on the remaining few as a reward for not leaving for lower-taxing states. Is there a doctor in the house who can do an IQ transplant?!

We need government, both in California and throughout the USA and the Federal Government, who can grasp the concept that jobs are leaving the USA because government regulations and union bargaining have made the USA non-competitive in world markets. Until steps are taken to reverse that trend, there is only one choice left for our citizens:

Many, many years ago, I visited Sweden. I was traveling with a sales rep, and you could guess that I would ask him something about how he liked the world of socialized medecine, etc., in his country. He admitted he liked that very much.
Then I asked him if he minded the high tax levels he had to pay to get those benefits. "Well, let me put it this way," he replied, "A while back, my boss offered me a raise. I asked if I could have more vacation time, instead."

See? The taxes were so high that they had reached the point where more work for more money was discouraged. People didn't want more money for more work. They'd rather work less hours than get a raise. Now, that is certainly an interesting challenge for anyone who's given the job of increasing productivity, isn't it? What would you do?

02.11.2004: Here's a quote from Michael Lombardi of Lombardi Publishing:

"2.2 million jobs are gone for good. They are on "permanent vacation" (to quote the economist Max Webster) overseas.
They will not be returning, and it is more than likely the exodus will continue, as long as we Americans insist on being paid ten times more than our global neighbors for completing the same task.

Real economic change is underfoot in America. No President dares address it; no incumbent will speak its horrible name.

This nation raised itself to the top because of our agrarian might. We toiled and the land provided a bounty which we sold abroad. We prospered. Then America became an industrial powerhouse, making and mining more than we needed. We grew rich and, perhaps, complacent. But now we are on a new road... a road with an uncertain destination.

The greatest resource Americans have left is the ability to innovate, think, and solve problems - to invent and create. We have shown the world that we can do this like no other. And now we will have to structure an economy around those proponents. We will have to invent a new economy, with very well educated elements, using a very well educated work force. We will have to discard the blue-collar mentality of years gone by.

Meanwhile, the longer those who control our daily economy remain deluded about the great change we are going through, the higher the price of gold will go and the lower the U.S. dollar will drop.

The old guard has fallen back on old tricks. They won't work and they will only delay the inevitable."

Some of you still don't get it, do you? You're trying to say this isn't true or that this is reversible. Please explain, in detail, how, without another Smoot-Hawley Tariff?