One Aging Geek

Thursday, July 01, 2004

Donohue Endorses Outsourcing of Jobs

Donohue Endorses Outsourcing of Jobs

U.S. Chamber of Commerce Leader Thomas Donohue Promotes Outsourcing of Jobs to Boost Economy

SAN FRANCISCO (AP) -- U.S. Chamber of Commerce President and CEO Thomas Donohue is promoting overseas outsourcing of jobs as a way to boost the economy and even increase employment -- a stance that rankles jobless white-collar workers, particularly in the flagging technology industry. Donohue, speaking Wednesday night to the Commonwealth Club of California, said he believes exporting high-paid tech jobs to low-cost countries such as India, China and Russia saves companies money that they may use to create new jobs for Americans.

CEOs from Wall Street to Silicon Valley have embraced the theory, and the pace of offshoring has shocked statisticians and economists. In early June, the Bureau of Labor Statistics downwardly revised projections for white-collar job growth for 2002-2012, based on accelerated job migration. The agency reported that seven of the 10 occupations expected to gain the most ground are low-wage occupations that do not require a college degree.

Technology consulting firm Gartner Inc. estimates that 10 percent of computer services and software jobs will be moved overseas by the end of this year.

Why is it that those at the top of the pyramid scheme known as Corporate America think this good while those of at the bottom don't?

The most ludicrous statement is that the savings is used to create new jobs. The savings is used to raise the ever spiraling compensation of C-leve executives. It's just another facet of the Reagonomice / Trickle Down Economics / Voodoo Economics.