There's also a big problem with corporations stating skilled American workers can't be found. It was reported somewhere up to a 2 million shortage of skilled , educated workers especially in the technical fields as was traditionally done of new college(or military) graduates they hired. What hasn't been reported as much and has been swept under the rug by the media and both major parties is that corporations don't invest in training anymore of Americans. There are far fewer internships. Far fewer retraining programs sponsored. Within the past decade, there was the boom of hiring foreign nationals and shipping jobs overseas with a lot of training done by soon to be laid off workers who claimed they had to "train their replacement". Even at the undergraduate and now at the graduate level, new graduates don't have the specific job skills required in a STEM(science,engineering, technical,math) job. Imo, that's the real problem with educated STEM jobs, not as much the university system, as corporations sitting on cash, or investing it offshore, and not training the next generations of new technical skilled workers. Throwing more taxpayer money at Education K-12, "shovel ready" jobs, and the waste of the Dept. of Education to produce liberal studies graduates for the next generation of K-12 teachers, DMV, and state workers is not helping the situation. That's just fueling the unions machine.
I recall reading Computerworld magazines back in the late nineties and early 2000's. There were editor and opinion articles about "outsourcing" and "offshoring", whether it was good for the industry etc. There were a lot of pros about it, such as improved efficiency, quicker project time estimations, improved global business etc. And we all know how that turned out. Record corporate profits and production by the cost cutting due to offshoring. As of now, not just IT has been affected by offshoring but most all employment sectors. An estimated 20-25 million jobs were offshored, a whole lost generation of jobs. And those jobs are probably never coming back. The next 3rd world industrialization boom will be Brazil , and South America. The "American" multinationals will be there next. A lot of technological and manufacturing know-how was also shipped off. When we saw high end precision electronics starting to be made in China such as graphics cards, most all laptops and motherboards, and LCD's since 2005, it was pretty much over. Before that they could only manufacture dubious messily soldered boards for power supplies.
Last edited by Cloudy; October 5th, 2011 at 01:41 AM.
Trust me, corporations do not want to sit on the cash. They are not getting any interest, and there is inflation. The only reason why they are sitting on cash because the environment does not warrant it. There is no certainty from Washington. The decision from Washington affect everyone in the country. This is the reason why they rather go offshore and outsource the jobs.
Just take the same situation apply to a state level. If the lawmaker in NY is uncertain and introduce new law every day, but in NJ, the lawmaker is certain that no new tax and regulations will be introduce, the companies in NY can just relocation their resource to NJ if they want to grow. This is exactly the reason why corporations outsource.
Just think about it, you are facing your policy at home and by outsourcing, you have to deal with another countries policy. Why make business complicate. It suppose to be fun.
Under a capitalist and free country, they can do whatever they want with the money. If they like, they can burn it to warm their hands.
But we don't have a free country or we have capitalism. China has more economy freedom than US. Business here are look to China. This is how sad this country is.
The occupy wall street people are ill inform. It is not capitalism that failed, it is corny capitalism that had failed. Our government with central planning has failed us. A true capitalism would like those "too big to failed" just failed.
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Honestly, I think these protests are intended to deflect attention from the White House, in regards to the last 2-3 years of economic policy making that hasn't produced the results we were promised. Otherwise, why are they starting now? It would have been more salient to raise these concerns back in 2008 ...
Furthermore, to allege that "corporate and Wall Street greed" is the only reason behind the current economic predicament is to ignore the role that government played in this (and, to a lesser extent, organized labor). I'm not saying that Wall Street (Bear Stearns, Lehman Bros., Merrill, B of A) and corporations (AIG) didn't play a role, because they clearly did, but to portray them as being the only actors responsible is disingenuous. The Federal Government in the 1990s prodded banks to develop the sub-prime mortgage market, and the White House resisted efforts by the CFTC to rein in over-the-counter derivatives. Republicans don't get off scot-free either, as they controlled both the White House and Congress for six years in the 2000s and didn't do anything to head off these risks.
That being said, while most of the TARP money lent to the financial sector has been repaid, the biggest *non-payment* so far has been from the automobile industry, which is beset by onerous labor contracts. The challenges facing state and municipal governments stem primarily from the fact that they rely too much on taxing the wealthy (whose average net worth plummeted during this crisis, thereby reducing tax revenues to government), exposing the prohibitive costs these governments pay to unionized labor and pensions.
Of course, all of this is lost on the twenty-something protesters who are banging drums, blowing horns and waving pseudo-socialist red flags on the corner of Jackson and LaSalle Street in Chicago.