Politics, Offshoring Jobs and Wage Slavery
Daniel Downs
January 29, 2007
Offshoring jobs is one of the hot issues in the current presidential campaign. Kerry blames President Bush for massive job losses. Blame game Kerry must have forgot that in 1993 he voted for those losses. In 1993, Senator Kerry voted to implement the North American Free Trade Act (NAFTA). Unlike Kerry, Economic Policy Institute blames NAFTA for over 879,000 lost jobs. If he was doing his job, Kerry knew jobs would be lost. On November 17, 1993, it was reported to the Senate that thousands of manufacturing jobs would be lost. Job loss estimates ranged from 22,500 to 912,000. Another report made made on the same day pointed out that if NAFTA was passed over 30 percent of the African-American labor force employed in manufacturing would be effected. Why was Kerry not concerned in 1993?
Critics like Kerry fail to mention the new jobs created since NAFTA's implementation. According to Economic Policy Institute, NAFTA resulted in exports that created 794,194 new jobs. The Center for Trade Policy Studies reports the total number of new jobs created since 1993 is 309.9 million, and the total jobs lost as 327.7 million. Why the discrepency bwtween these figures and those of the Economic Policy Institute? The latter estimates are for export related jobs only, whereas former is for all U.S. jobs. Although exports generates fewer jobs than are lost to offshoring. Overall, the politcal economy has created more jobs than lost, but not because of NAFTA, which Kerry voted for.
What would happen if Kerry and others succeed at restricting off-shoring jobs? Offshoring jobs improves the foreign economies making it possible for them buy American goods and invest in the American economy. A large percentage of sales revenues generated by businesses in large cities like Seattle, San Jose, New York City, and elsewhere originates from export sales. Restricting job offshoring would reduce revenues and jobs. With baby boomers beginning to retire, some economists predict a shortage of workers. They suggest more retirees will need labor intensive services, which may require outsourcing of other jobs to compensate for labor shortages in other fields.
Change is always painful. Those who suffer job loss need solutions not political rhetoric. One solution is accurate information and local support. Another is substantial increases in export trade so that more jobs are created locally. Still another is funding for retraining. President Bush has proposed increased funding for job retraining. That is a step in the right direction.
Critics like Kerry fail to mention the new jobs created since NAFTA's implementation. According to Economic Policy Institute, NAFTA resulted in exports that created 794,194 new jobs. The Center for Trade Policy Studies reports the total number of new jobs created since 1993 is 309.9 million, and the total jobs lost as 327.7 million. Why the discrepency bwtween these figures and those of the Economic Policy Institute? The latter estimates are for export related jobs only, whereas former is for all U.S. jobs. Although exports generates fewer jobs than are lost to offshoring. Overall, the politcal economy has created more jobs than lost, but not because of NAFTA, which Kerry voted for.
What would happen if Kerry and others succeed at restricting off-shoring jobs? Offshoring jobs improves the foreign economies making it possible for them buy American goods and invest in the American economy. A large percentage of sales revenues generated by businesses in large cities like Seattle, San Jose, New York City, and elsewhere originates from export sales. Restricting job offshoring would reduce revenues and jobs. With baby boomers beginning to retire, some economists predict a shortage of workers. They suggest more retirees will need labor intensive services, which may require outsourcing of other jobs to compensate for labor shortages in other fields.
Change is always painful. Those who suffer job loss need solutions not political rhetoric. One solution is accurate information and local support. Another is substantial increases in export trade so that more jobs are created locally. Still another is funding for retraining. President Bush has proposed increased funding for job retraining. That is a step in the right direction.
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