Wednesday, July 27, 2011

What's Wrong With America's Job Engine

In response to the Article by David Wessel July 27 2011

Although in the article David states the obvious - we are bleeding jobs and  the economy is growing too slowly.  David is trying to make the excuse for corporations by saying - if the companies knew the can sell more they would be more inclined to hire people. This is basically like stating that if the chicken saw more food it would lay more eggs. That is not the crux of the reason that America Job Engine is not growing.

Just consider the point mentioned briefly in the article "In a survey of 2,000 companies earlier this year, McKinsey Global Institute, the think tank arm of the big consulting firm, found 58% of employers expect to have more part-time, temporary or contract workers over the next five years and 21.5% more "outsourced or offshore" workers."

Well - now we are talking - if you read this and you understand that employers plan to "outsource and offshore more workers" doesn't it state the obvious - THERE WILL BE LESS HIRING IN THE US!!!
Not only that - but those same corporations and CEO's that cry to the government that they do not have enough skilled workers in this country and that they want more H1-B visas to "qualified workers" from other countries to come to the US - turn around and ship jobs overseas.

But more than that - not only that jobs get shipped. Corporations have to build factories and invest in those countries they hire. This creates an enormous transfer of investment from the US to countries like China, India and Korea - well guess what - if the money flows out - there is not enough money and willingness to invest in good old USA. That is the true crux why you see low job growth and nonexistent recovery - the investment balance in the US is negative!

See the article by David Malpass and Stephen Moore July 5 2011
By the way - those corporations that bring in 65,000 workers every year to the US (and most of them end up staying later) do not really do this because they can't find qualified people here in the US. The do it because they want qualified people on the CHEAP! See the article by Stephanie Gleason July 27 2011

With all the unemployed people out there - there are many engineers and tech workers able and bright that are looking for work in this troubled economy. Yes some of them might be in their 50's with lots of experience which will cost the company more than they are willing to pay.

By going the H1-B way, Multi-National corporations enjoy two way benefit approach. Cheaper labor overseas and cheaper labor in the US (for those jobs they do leave here). This goes to show the point I explained in my previous Blog regarding corporations in America. The point is that the corporate profit motivation by itself does not benefit the national interest of the people who give this corporation the right to exist. If a corporation is an entity it must choose a nationality to be loyal to. Just as people in the US are sworn to loyalty for the US - Corporations that are formed in the US must operate as a national powerhouse for the benefit of people of the country of origin - considerations of shipping of jobs should be limited by the people who give the corporation the right to exist. This not the way corporations operate today in the US.

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