Editor's corner/ Over a cup of tea
Heidi M. Pascual*
Publisher & Editor
* 2006 Journalist of the
Year for the State of
Wisconsin (U.S.-SBA)
Publisher & Editor
* 2006 Journalist of the
Year for the State of
Wisconsin (U.S.-SBA)
| Bad word in America nowadays: "Outsourcing" |
When American corporations moved some of their firms' activities and functions in other
countries, their main concern was to cut costs. In the last two decades, these corporations
made lots of money due to cheap labor, low taxes and lots of incentives in their host countries.
Essentially, outsourcing is the export of domestic jobs to places where unionized labor isn't
encouraged. In some of these host countries, industrial zones are established exclusively for
these foreign corporations. In addition, there is an absence of the IRS, OSHA, EPA and other
regulatory agencies as well as health care insurance for workers that usually eat up profits!
Proponents of outsourcing used to claim that even the loss of auto jobs and high-paying
manufacturing jobs on the domestic front sparked innovation that created more and
better-paying jobs in the U.S. They also argued that corporations that outsourced many menial
jobs provided employment to people in third world countries who wouldn't otherwise have jobs
to support their families. Americans, through these corporations, maintained the U.S. image of
being Big Brother to these poor countries.
However, for many years now, we're not talking only about assembly-line type of jobs that
are being outsourced to countries in Asia, Central and South America, and Africa. We're talking
about highly-skilled and professional jobs such as those in IT, computer & electronic
engineering, telecommunications, medical and pharmaceutical research, and many others.
Since 2007 when our economy started to plummet and our unemployment rose to
astronomical heights, outsourcing has become a very bad word. It has in fact been the focus of
a campaign pitch by Pres. Obama last year: to encourage and provide incentives to American
corporations that will provide employment here at home rather than abroad. With millions of
unemployed Americans and companies closing shop every day, it is impossible not to take a
closer look at outsourcing. These hard times direct us to focus inward and regain our economic
lead in the world. After all, how can the U.S. help others if it is having a hard time keeping its
people alive?
countries, their main concern was to cut costs. In the last two decades, these corporations
made lots of money due to cheap labor, low taxes and lots of incentives in their host countries.
Essentially, outsourcing is the export of domestic jobs to places where unionized labor isn't
encouraged. In some of these host countries, industrial zones are established exclusively for
these foreign corporations. In addition, there is an absence of the IRS, OSHA, EPA and other
regulatory agencies as well as health care insurance for workers that usually eat up profits!
Proponents of outsourcing used to claim that even the loss of auto jobs and high-paying
manufacturing jobs on the domestic front sparked innovation that created more and
better-paying jobs in the U.S. They also argued that corporations that outsourced many menial
jobs provided employment to people in third world countries who wouldn't otherwise have jobs
to support their families. Americans, through these corporations, maintained the U.S. image of
being Big Brother to these poor countries.
However, for many years now, we're not talking only about assembly-line type of jobs that
are being outsourced to countries in Asia, Central and South America, and Africa. We're talking
about highly-skilled and professional jobs such as those in IT, computer & electronic
engineering, telecommunications, medical and pharmaceutical research, and many others.
Since 2007 when our economy started to plummet and our unemployment rose to
astronomical heights, outsourcing has become a very bad word. It has in fact been the focus of
a campaign pitch by Pres. Obama last year: to encourage and provide incentives to American
corporations that will provide employment here at home rather than abroad. With millions of
unemployed Americans and companies closing shop every day, it is impossible not to take a
closer look at outsourcing. These hard times direct us to focus inward and regain our economic
lead in the world. After all, how can the U.S. help others if it is having a hard time keeping its
people alive?
