02-25-2004, 11:00 PM
Article on "Always-On"
<span style='color:red'><b>Outsourcing created jobs that the pols ignore </b></span>
link
The talk on why and how the US needs to act about the outsourcing is getting interesting by the day . The economist, consultant , corporation, angry-laid-off-programmer and now even the presidential candidates ....every one has an interesting and rational opinion on dealing with the spoil sport. My comments are purely an Indian point of view on what we see, read and hear on the happenings , and hopefully it adds to the confusion.
Just arguing that it has not happened in the past even when the manufacturing was faced with completion from Japan and now just about every country in South & South East Asia doesn't seem to wash any more. Seems more concrete evidence is needed to prove that the net effect to the US worker will be positive this time around too .
The argument usually goes "But this is high tech services, the well paid jobs are on the danger list , if they go then America will soon have nothing left". Revisiting the by now standard counter "Studies do show that America gains more than India thru off-shoring ". But this isn't the same as creating jobs . True. "The US consumer has saved billions through technology out-sourcing by the financial services industry"..... But jobs are still disappearing by the thousands daily . True Again.
Wired suggests the American economy will create new innovative jobs, but what they will be ...too early to say .
The answer to this question may indeed be difficult ,
as it is hard to predict what jobs the US will retain and create more of as India & China emerge worthy competitors in just about every field, call centers to space .
All I can offer in defense of two main accused .."The people here will definitely eat more Big Macs and drink Coke with their new found wealth ", ... but we all know that this won't create too many jobs in US.
They are also sure to watch more Hollywood films and travel to US on business and pleasure in greater numbers . More may be able to afford the prized US education for their children , and I believe over a 150,000 Indian & Chinese already do each year , poor as they are . Some may join those rich enough to afford your excellent medical facilities, others may just want to buy an apartment in New York or own a ranch in Colorado to wind down . All this should create real jobs, but may be not be the type a laid off programmer wants. May be the fellow doesn't know a thing or two the steel worker does.
The rate at which such jobs may be created may well astound Americans , as an Indian on an average now earns around a $500 p.a. while the Chinese just about double, to the American's $38,000. If the magic of disposable income is working to propel these economies by 8% -10% p.a. , it may add a fraction to the US & European economies too, after all we are a fat 2.3 billion and growing .
One thing is for certain, the protectionism won't work for the American people the way it is explained, nor the politician will be able to deliver on the election promises .
A multi-polar economic world order is already in place where no country now has the power to demand a bigger share of the pie without growing it, or following commonsense economic policies. The G-20 have successfully blocked US & EU in the WTO on issues like agriculture. The Chinese retaliate hard when their interests are harmed, and the Indians turn adamant on opening up more, if markets that were open till very recent are blocked .
Politicians are the same every where. Good at doing only the easy ones. The services trade, both off-shoring and the right of a person to deliver services on site is the next contentious frontier to be resolved at the WTO .
The speed and the rationality with which these issues will be sorted out should be pointer to how painless the transition to a more balanced development path for the world will be .
<span style='color:red'><b>Outsourcing created jobs that the pols ignore </b></span>
link
The talk on why and how the US needs to act about the outsourcing is getting interesting by the day . The economist, consultant , corporation, angry-laid-off-programmer and now even the presidential candidates ....every one has an interesting and rational opinion on dealing with the spoil sport. My comments are purely an Indian point of view on what we see, read and hear on the happenings , and hopefully it adds to the confusion.
Just arguing that it has not happened in the past even when the manufacturing was faced with completion from Japan and now just about every country in South & South East Asia doesn't seem to wash any more. Seems more concrete evidence is needed to prove that the net effect to the US worker will be positive this time around too .
The argument usually goes "But this is high tech services, the well paid jobs are on the danger list , if they go then America will soon have nothing left". Revisiting the by now standard counter "Studies do show that America gains more than India thru off-shoring ". But this isn't the same as creating jobs . True. "The US consumer has saved billions through technology out-sourcing by the financial services industry"..... But jobs are still disappearing by the thousands daily . True Again.
Wired suggests the American economy will create new innovative jobs, but what they will be ...too early to say .
The answer to this question may indeed be difficult ,
as it is hard to predict what jobs the US will retain and create more of as India & China emerge worthy competitors in just about every field, call centers to space .
All I can offer in defense of two main accused .."The people here will definitely eat more Big Macs and drink Coke with their new found wealth ", ... but we all know that this won't create too many jobs in US.
They are also sure to watch more Hollywood films and travel to US on business and pleasure in greater numbers . More may be able to afford the prized US education for their children , and I believe over a 150,000 Indian & Chinese already do each year , poor as they are . Some may join those rich enough to afford your excellent medical facilities, others may just want to buy an apartment in New York or own a ranch in Colorado to wind down . All this should create real jobs, but may be not be the type a laid off programmer wants. May be the fellow doesn't know a thing or two the steel worker does.
The rate at which such jobs may be created may well astound Americans , as an Indian on an average now earns around a $500 p.a. while the Chinese just about double, to the American's $38,000. If the magic of disposable income is working to propel these economies by 8% -10% p.a. , it may add a fraction to the US & European economies too, after all we are a fat 2.3 billion and growing .
One thing is for certain, the protectionism won't work for the American people the way it is explained, nor the politician will be able to deliver on the election promises .
A multi-polar economic world order is already in place where no country now has the power to demand a bigger share of the pie without growing it, or following commonsense economic policies. The G-20 have successfully blocked US & EU in the WTO on issues like agriculture. The Chinese retaliate hard when their interests are harmed, and the Indians turn adamant on opening up more, if markets that were open till very recent are blocked .
Politicians are the same every where. Good at doing only the easy ones. The services trade, both off-shoring and the right of a person to deliver services on site is the next contentious frontier to be resolved at the WTO .
The speed and the rationality with which these issues will be sorted out should be pointer to how painless the transition to a more balanced development path for the world will be .