Bush: There Is Outsourcing Because We Are Dumb

For me, it was Bush's most offensive line of the night. Kevin Drum's wife found Bush's comment on how education will solve outsourcing as offensive as I did:
At the time he made it, it struck me as nothing more than a routine politician-speak answer, basically not a big deal. But it got the biggest reaction of the night from my wife: she felt insulted. "Jobs aren't going overseas because they're better educated," she said, "they're going overseas because labor costs half as much." She was steamed.
Of course, those in favor of trade policies that lead to increased outsourcing have always argued that those favor any restrictions or regulations on trade whatsoever are dumb. Bush just wanted to say it to America's face.



Display:


If you cant, (none / 0)

hit this poll. We are down bad. Damn, living in the south is depressing.

http://www.11alive.com/

It's the first story, under "poll."

by jp2 on Thu Oct 14, 2004 at 12:59:09 AM EST

jp2, the poll on that web page is BROKEN (none / 0)


just FYI

It doesnt register my vote for Kerry...

I tried from several IPs and browsers.. deleted cookies..etc..

They are lying to you.. Try it yourself..

by ultraworld on Thu Oct 14, 2004 at 02:21:40 AM EST
[ Parent ]

Outsourcing (none / 0)

Well, there isn't much point in trading or outsourcing with other countries if there is not an economic advantage in doing so. People are always looking to buy goods and services cheaper. Trade always occurs because both sides benefit, or believe they benefit from the trade.
People who believe we can have a richer country by trade restrictions are indeed dumb.

And BTW, let's put to rest the notion that either Bush or Kerry believe in total free trade. They don't.

by Mark Fulwiler on Thu Oct 14, 2004 at 01:34:08 AM EST

Re: Outsourcing (none / 0)

Well, there is an advantage to corporate owners, because labor is a significant part of their costs.. If they can get an engineer in Bangalore for $5 a day, and continue to charge the same thing, they make a LOT more money..

To Bush, that's all that matters.

One disturbing thing that neither Bush nor Kerry mention is the lack of accountability that seems increasing all of the time. This has the potential to become a really difficult situation for working people.

Of course, under our system, neither the government nor industry have any obligation whatsoever to provide or even attempt to increase the quantity or quality of jobs.

And, there is even a movement afoot (notably in Hong Kong) to take the vote away from natural people and give it to businesses (corporate persons) instead.

Of course, if 'productivity' continues to increase, yes, the businesses that are seeing that productivity make more money, assuming that an adequate number of people somewhere have money to buy their products.

But they have no obligation to share the increased profits with current or former employees. In fact, they do have a corporate obligation to eliminate staffing as their staff increasingly does its job better.

So if you track increased productivity into the future you will see that eventually we are faced with a situation where we can make everything we need with very few people..

But, if people here in the US don't have jobs, people, at least American people, will not be able to afford to buy them...

by ultraworld on Thu Oct 14, 2004 at 02:46:10 AM EST
[ Parent ]

Since we comfortably won 3 debates... (none / 0)

I'll take a moment of luxury and actually agree with Bush on this one.  I've thought the same for a while.

Outsourcing labor is an outgrowth of two things: the technological growth of communication and poor education in the USA.

The Internet, cheap (and clear) international phone calls, and sattelite communication all combine to make outsourcing feasible, although with obvious overhead costs.

The bigger problem, in my view, is that there are  very bright, well-educated people in countries that we are used to thinking of as the third world.  They are clearly smart enough to learn English, at least.  And here, in the USA, many students barely know how to read and write.

I went back to college to finish a degree recently.  As an older student, it was very eye-opening.  Young people today are stupider than they used to be.  That may be painful to hear, and I might not know how to prove it other than through my own anecdotal experience, but it is true.  

The international students kick the ass of the American students.  There's obviously some self-selection involved in international students superior performanc; it takes some ambition and intelligence to go to school overseas, here, as they do.  But the laziness and lack of interest of many American students is just ghastly.  They take it for granted.  The instructors take it for granted.  This stupidity is accompanied by a huge sense of entitlement.

Well, that's my little rant.  Bush is right, although he might have just been grabbing at straws when he said it.

by Dumbo on Thu Oct 14, 2004 at 08:52:25 AM EST

Education is the Answer to Everything (none / 0)

Even dandruff.  I happen to be a poster child for success through higher education.  Like the current president, I have an MBA, albeit from a southern school.  I went to a well-respected university on grants, work/study, and dishwashing.  A community college degree alone would not have enabled me to enjoy the career I have.

I haven't seen anyone comment on Bush's emphasis on community college as the path to higher education for the masses.  He never talks about enabling poor families to send their children to Yale or Harvard, even Eastern State.  Why didn't his daughters choose that route?  Could it be that he believes smart kids from less affluent backgrounds don't deserve a chance to prove themselves at an elite university?

by ConcernedCitizen on Thu Oct 14, 2004 at 09:00:50 AM EST

Re: Education is the Answer to Everything (none / 0)

Education is extremely important and more is better, but it is certainly not the answer to the outsourcing issue.

Jobs are not being outsourced to India, etc., because those people are more educated/skilled than Americans, they are being outsourced because they will work for less comepnsation.  Increaseing the skill and education of the US workforce may actually hurt in these industries, because more skilled/educated workers demand higher compensation.

Investments in education/training will hopefully help workers when American companies see opportunities for profits in emerging technologies.  Gov't. investment in emerging technologies (e.g., renewable energy sources) can help this process along.

by danielj on Thu Oct 14, 2004 at 12:52:22 PM EST
[ Parent ]

Outsourcing (none / 0)

Free trade sucks for America.  It doesn't help our citizens.  The economic theories that the pin head economists cling to are all bunk.  Tell me about the morality curve or the nationality curve.  There isn't any such thing because all that matters in business is profit.  If a business can go overseas and reduce their labor cost to zero (slavery) then they will have a comparative advantage and the pin heads all claim this is a good thing because we Americans get the benefit of cheaper products.  This logic is the same as saying the benefit of cheap cotton justified the plantation lifestyle.  So what happens is one of two things

  1. American companies take their jobs to places where they can have slaves (or ruin the environment or avoid paying retirement or health costs) and we lose an industry because of "comparative advantage"

  2. American companies drive down compensation in this country to levels paid in the 3rd world.

This is the race to the bottom.  It does not benefit workers!  Cheaper prices don't help the unemployed!
by Just Karl on Thu Oct 14, 2004 at 01:17:04 PM EST

I have a theory on the trade deficit (none / 0)

It's a bit weird, but...

The reason we have such a huge trade deficit is because we are the most powerful country in the world.  The deficit is a result of our (real and perceived) strength.

Why?

Because our currency is the most trusted on the planet.

What do all international oil transactions use as a base currency?  Dollars.
What currency do the citizens of countries use where the local currency is basically worthless?  Dollars.
What currency do drug dealers and money smugglers use?  Dollars.

Not Yen, not Pesos, not Euros, not Pounds, not Rubles.  No, US Dollars.

The demand for US dollars is artificially high due to this.  Therefore, the cost of US dollars is artificially high.  Therefore, the cost of US-based labor, which is paid in dollars, is artificially high.  Therefore, there is an artificial incentive to ship jobs overseas, where the workers are paid in a currency that costs less.

by Geotpf on Thu Oct 14, 2004 at 03:22:03 PM EST


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