Monday, November 3, 2008

Why sending jobs overseas has led us to the 2nd great depression

So all I hear from Republicans with regard to sending jobs overseas is how so many new high paying jobs will be created in the U.S. when we send our jobs overseas. This makes absolutely no sense whatsoever. Here's a comprehensive list of the damaging effects of off shoring:

1. That's great that you send every Americans job overseas but then what do we do with Americans that have to change industries now? The government that promotes sending jobs offshore has a responsibility to take care of Americans displaced by this off shoring. That means more tax money spent now in the form of Vocational / School vouchers and government sponsored training programs. Also, the government gets to do the research to see what training they should offer. The government is responsible if they offer training for industries that get shipped overseas the next day. Wow, sounds expensive but it is the right thing to do, and is done in many countries in Europe. That raises taxes for all by the way.

2. There is a smaller amount of tax dollars coming into the government because the off shore wage is so much smaller. Less money for homeless and cleaning up ghettos here in America. That money could also go to education, investment in alternate fuel sources, medical care for all Americans. The list of things Americans deserve is endless but gets shorter when we decide to send jobs off shore.

3. Those dollars made by foreigners are kept in their economies, sent back home to family, I'm sure you've no doubt heard someone from China or India say in this country. Hey, what about my family and my parents? Why don't I deserve to make that money for them? Why should it go to someone elses family in India or China or wherever decides to undercut Americans? Fairytale economics teaches us that they will spend those dollars sent back home on expensive American products in their own countries. But if they do not, if they purchase much cheaper products made in their own country, those dollars are lost to you and I forever.

4. The government frequently makes student loans for training in work that is strictly done overseas (basically everything), thus shipping those jobs away that one was recently trained in! So now there are huge student loans that cant be paid back simply because the government gave tax credits to businesses to ship those jobs away. Now all that's available if your lucky is a job at Wall mart that will keep that loan open for much longer and raising taxes for all because of this. Taxes go down when there aren't looming student loans.

5. When one is made unemployed because their industry has been shipped overseas, they usually will receive unemployment insurance which once again drains on the system, again raising taxes. The fewer people we have collecting unemployment the less tax money we have to pay as tax payers.

6. When everyones spending power is reduced to Wallmart wages, dont expect banks to stay around very long. If everyone has to live in an apartment, that is just profit to the pocket of apartment owners instead of being capital gaining interes and being available to new business owners, anyone looking for capital for any reason. Now again weve shrank the amount of tax money comming in thus raising tax rates. We can have lots of tax dollars comming in from employed Americans so we can have a lower tax rate overall, or we can have fewer tax dollars becuase ther is less income to tax thus forcing us to raise the tax rate becuse there are fewer dollars to tax!

7. Fairytale economics teaches us that the savings earned by businesses by offshoring will be reinvested into the company and new higher paying jobs will emerge!! But what if the business owner or board investor wants to turn a profit instead of reinvest this year? Well guess what, no job creation and again a lower tax base for what all society needs.

So all you "lower tax" fans out there, guess what; when you offshore jobs, taxes go way up exponentially for everyone!!! So its very hard to listen to someone that says that they support offshoring and lower taxes.

Whats so great about depression anyway?

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