CSC To Cut 1,800 Domestic Jobs, Add 2,000 Offshore Workers 1260

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True.

That is the case -for now. You need a change in policy to fix the situation. You aren't producing anything to the extent you used to anymore is because your cost structure doesn't allow you to do so. Companies move work from the US to other countries because the high cost of living and your high std of living makes it financially unviable to hire people locally. If both of these come down, they will create jobs for which you can re-train. If it comes down a bit, you will have to train for work higher up the value chain coz you are still expensive to hire, but maybe given an a chance you can improvise and provide value for money. If the cost structure comes down significantly, even blue collar workers will see their jobs come back in addition to white collar workers getting their jobs back. The reason why you see so many americans following their jobs to Blore is because the cost structure allows employers to hire them in Blore, and because the company that moves the jobs there doesn't have anything against the workers being laid off in the US -but only something against the cost structure in the US.

Its something that makes sense to some people who are neither Indians nor affliated to corporations nor have an anti-american agenda.

No -if americans consume less, they will become financially viable to hire. Initially, the chinese consumed very little and exported a lot. But now, they have both consumers and producers in their country. India for its part consumes more or as much as it produces, and we have a trade deficit with many countries. There is no secret sauce in the hands of the american Consumer Debt that he and he alone, can finance jobs in India-China. Any working clbutt person starts consuming once he has a job in hand. The folks doing outsourced work in India or labourers doing export-oriented stuff in China and their mgrs etc.. have all acquired purchasing power, and that enables them to consume and buy products the american Consumer Debt who lost his job would have. From what I have heard, corporations have lobbied heavily for the olympics to be held in Beijing -so that they can show (advt) their wares to 1.2 billion first-time consumers there, and if you fix your cost structure -those 1.2 billion first-time consumers could finance your job too.

Neither. I am telling you something that you are having a difficulty in comprehending.

It isn't going to hurt people here if you reduce your consumption level. It will hurt some countries that export heavily to the US. As I told you before, our exports to the US are less than that of S. Korea or some small ASEAN countries.

Never done any farming. There were lots of engineers-doctors-scientific manpower in India before outsourcing or globalization came into the picture. I remember reading (before MNCs started recruiting) that India has(-d) the 3rd largest scientific manpower in the world. It isn't exclusively a country of farmers -and needn't be so, for farming to be the biggest form of economic activity.

they would lose quite a few jobs if the sole buyer of their services was the heavily indebted US consumer. If a company like IBM or HP otr GE which sells industrial equipment to businesses and not consumers -and that too worldwide and not just in the USA -replaces its US staff by Indian engineers, then they will have still be able to retain their jobs if your consumption level drops.

It won't. It will help to correct your trade deficit, and make it financially viable for employers to hire americans for goods-services to be sold either inside or outside the USA.

fine.

It can -and for you to know for sure that it will or will not make a diff, you need to understand how monetary policy works.

didn't your govt spend a lot of taxpayer money in defeating communism?

good for them, and good for you if it doesn't yield savings as advertised. The problem comes when it does yield significant savings and translates to not just cheaper but also better products for the customer. When that happens, the american worker loses his job to the other guy who has a comparative advantage over him.

yeah -thats a possibility. But then, we have a free market here too -and wages have been shooting up here for the past couple of years. They have no means to ensure that labour remains cheap here.

regards -kamal