THE NEXT WAVE OF OFFSHORING Far Eastern Economic Review March 2005 By Robyn Meredith
A few interesting quotes from this article:
Robyn happily chirps, “Over the next decade, offshoring will knock millions of white-collar Americans and Europeans out of work, blowing a hole in the middle class from Los Angeles to London, from Boston to Berlin, from Toledo to Tokyo, from Austin to Amsterdam… Fat, rich and spoiled Westerners have for several generations been shielded from workplace competition with the world's most populous nations. ”
“Here's the extent of the good news for middle-class America: If history is any guide, just over a third of those who are laid off because of offshoring will quickly find a new job and be no worse off, according to consultants McKinsey & Co. Just over half will have to take pay cuts of at least 15%. A quarter of those laid off will take pay cuts of at least 30%. European workers are even in worse trouble: those who lose jobs there are only half as likely as Americans to find new jobs within six months, according to McKinsey.”
“Yet offshoring doesn't have to be all doom and gloom for Western countries. Economists say increased trade-globalization-however painful for those who lose their jobs because of it, always brings more wealth to the world as a whole. Offshoring is already a net gain for the U.S. and for the country where the jobs land. Every dollar of spending that U.S. companies transfer to India creates $1.46 in new wealth, according to McKinsey research. India keeps 33 cents of that gain, while the U.S. keeps $1.13 for every dollar spent on offshoring.
This means consumers in the West are big winners, too. Despite the pain felt by white-collar workers whose jobs are moved offshore, the jobs transfer will bring lower prices to the shores of the industrialized nations.”
This goes to show the inhumanity of the neocons - a full two-thirds of laid off workers will face long term unemployment and lower wages. But it is even worse than that. Every time you have mass unemployment you have bankruptcies, family break-ups, an increase in substance abuse, an increased risk for heart attacks and suicide. Simply put, unemployment ruins lives and worse, KILLS.
Most of the so-called increased wealth certainly won’t do to the work force, it will go to the greedy corporations that are outsourcing. And even if offshoring was beneficial, doesn’t Robin’s sort of argument have a familiar ring to it? Isn’t it “the end justifies the means?” Isn’t it “Well, it’s OK to destroy the lives of these people because the majority benefit”? Isn’t this the same thinking as “Yes, Stalin is a brute, but give him credit, he industrialized Russia?” THE NEXT WAVE OF OFFSHORING shows once again how amoral and nihilistic the neocons are.
Sunday, April 10, 2005
Saturday, April 9, 2005
FREE PUBLIC TRANSPORT?
A group in France, RATP claims that free city transit would cost no more than one where you pay for a ticket. How can this be possible, you ask?
First off, the true cost of so-called private transportation must be considered. These include pollution, road and street repair, injuries and deaths, and the cost of gasoline and diesel for a petroleum importing country like France. Anything that lessens the amount of "private" traffic also reduces these hidden costs. If free transit shifted, say 15% of traveling away from autos, add this to the "plus side" of the public transit ledger.
Ticket sales make up only about 30% of the amount that goes to provide for public transit. The rest is provided by the government. Before anyone gets worked up over subsidies to public transport, remember that so-called private transportation is even more highly subsidized by the state, some $135 billion per annum in the USA.
Then there are the costs of printing and selling tickets, keeping the turnstiles functioning and policing for free riders. This sizable amount would have to be deducted from the cost of public transit.
A further saving could be made from de-bureaucratizing management. High-salary government bureaucrats could be eliminated and replaced by a board of directors elected from the transit workers and users. The transit company would become a stake-holder cooperative rather than a government agency. Lower level management posts could be eliminated as the transit workers could practice self-management on a day-to-day basis. With democratic management, the need for strikes, which are so costly to a transit system, would be eliminated.
Of course no "free" system is actually free. Transit must be paid for in some manner. At present, it is covered by a mix of taxes and tickets. By eliminating tickets, it would seem that taxes would bear the entire burden. Not necessarily as taxes could be replaced by user fees. The group which benefits most from transportation systems are businesses. The movement of workers and customers, as well as goods, is a business cost that is socialized - imagine if each company had to supply its own transportation system to bring its workers to the job and consumers to the shop, as well as paying tolls to pay for the roads and bridges. An alternative method of finance would be to charge each business a user fee, and like water rates, the bigger the business, the larger the charge.
First off, the true cost of so-called private transportation must be considered. These include pollution, road and street repair, injuries and deaths, and the cost of gasoline and diesel for a petroleum importing country like France. Anything that lessens the amount of "private" traffic also reduces these hidden costs. If free transit shifted, say 15% of traveling away from autos, add this to the "plus side" of the public transit ledger.
Ticket sales make up only about 30% of the amount that goes to provide for public transit. The rest is provided by the government. Before anyone gets worked up over subsidies to public transport, remember that so-called private transportation is even more highly subsidized by the state, some $135 billion per annum in the USA.
Then there are the costs of printing and selling tickets, keeping the turnstiles functioning and policing for free riders. This sizable amount would have to be deducted from the cost of public transit.
A further saving could be made from de-bureaucratizing management. High-salary government bureaucrats could be eliminated and replaced by a board of directors elected from the transit workers and users. The transit company would become a stake-holder cooperative rather than a government agency. Lower level management posts could be eliminated as the transit workers could practice self-management on a day-to-day basis. With democratic management, the need for strikes, which are so costly to a transit system, would be eliminated.
Of course no "free" system is actually free. Transit must be paid for in some manner. At present, it is covered by a mix of taxes and tickets. By eliminating tickets, it would seem that taxes would bear the entire burden. Not necessarily as taxes could be replaced by user fees. The group which benefits most from transportation systems are businesses. The movement of workers and customers, as well as goods, is a business cost that is socialized - imagine if each company had to supply its own transportation system to bring its workers to the job and consumers to the shop, as well as paying tolls to pay for the roads and bridges. An alternative method of finance would be to charge each business a user fee, and like water rates, the bigger the business, the larger the charge.
QUEBEC STUDENT STRIKE UP-DATE
The student movement has been split over whether to accept the government’s offer of $70 million in bursaries for the next year and a restoration of the $103 million the following years. Two of the major student organizations, the FEUQ and FECQ voted in favor and the others, especially the more militant CASSEE, have rejected it. The later group has moved beyond the simple single issue to a direction that is critical of the present politico-economic system. As I write about 80,000 students or approximately 40% of the total remain committed to the strike.
Such a high level of militance continues to put great pressure on the neocon government and is a good measure of what is in store for the future. In spite of the more conservative student federation’s copping out of the strike, it should be kept in mind that this has been one of the few times a neocon government has been forced to back down in its attacks upon the people. The neocons will soon learn that “crime does not pay!”
Such a high level of militance continues to put great pressure on the neocon government and is a good measure of what is in store for the future. In spite of the more conservative student federation’s copping out of the strike, it should be kept in mind that this has been one of the few times a neocon government has been forced to back down in its attacks upon the people. The neocons will soon learn that “crime does not pay!”
Tuesday, April 5, 2005
QUEBEC STUDENT PROTEST
The recent, and indeed on-going, college and university student protest movement in Quebec is of historical significance. For the first time in North America a European-level of student solidarity has arisen. Previously, student militance tended to be a minority movement or, as with opposition to the war in Vietnam in the USA, sparked by something outside of direct campus issues. Here we have a student general strike over the neocon Liberal govts. abolition of bursaries. More than 200,000 students have taken part in actions. Even the rather conservative economics students of the University of Montreal went out for a day. Some high schools went out in solidarity, as well.
The movement has a sense of humor and is mature. In one action the students formed an orchestra, stood in from of the Liberal Headquarters and played the "103rd Symphony" (in reference to the $103 million cut from bursaries) There has only been one minor action out of hundreds - the partial looting of a supermarket - that might turn off supporters. And public support does run high - 63% according to the polls. ( I remember when student protests got very little public support.)
Decisions are made at mass democratic assembles. Hopefully, this will remain the case and the students will refrain from throwing up a group of "leaders" who will act as intermediaries, and eventually sell-out the movement.
The state is backed into a corner. They offered $70 million in bursaries and the students refused - only the restoration of the full $103 million. Some campuses went as far as to demand that the govt resign as their only negotiating point.
All of this bodes well for the future. Student movements often invigorate the workers movement (remember 1968!) and this may be the shot in the arm we need, in order to have an all-out general strike against the Pinocharest regime and its vicious attacks upon workers. Mass student activism is a radicalizing process which gives rise to a whole new generation of militants. The future is hot!
The movement has a sense of humor and is mature. In one action the students formed an orchestra, stood in from of the Liberal Headquarters and played the "103rd Symphony" (in reference to the $103 million cut from bursaries) There has only been one minor action out of hundreds - the partial looting of a supermarket - that might turn off supporters. And public support does run high - 63% according to the polls. ( I remember when student protests got very little public support.)
Decisions are made at mass democratic assembles. Hopefully, this will remain the case and the students will refrain from throwing up a group of "leaders" who will act as intermediaries, and eventually sell-out the movement.
The state is backed into a corner. They offered $70 million in bursaries and the students refused - only the restoration of the full $103 million. Some campuses went as far as to demand that the govt resign as their only negotiating point.
All of this bodes well for the future. Student movements often invigorate the workers movement (remember 1968!) and this may be the shot in the arm we need, in order to have an all-out general strike against the Pinocharest regime and its vicious attacks upon workers. Mass student activism is a radicalizing process which gives rise to a whole new generation of militants. The future is hot!
Comment To The The Tyee
(In reference to the up-coming BC election. )With the Gliberals record, the NDP should be ready for a landslide. That they might not even win a minority govt. points out what a poor opposition they have been. But then again, the NDP and the hard right share a common fear of the average working person. Both parties wish to be in power to rule OVER us and not to allow us to control our lives in our communities. Thus, it is no wonder that most people are not enthused about such an “opposition.” Social democracy was originally about empowerment of workers, farmers and their communities. Somewhere along the line this got lost. Democracy got reduced to the quadrennial farce whereby we elect an elite who do what they want and to hell with our wishes. Loss of the true democratic vision has meant the stifling of social democracy and a further lack of imagination. It is no wonder that in many countries they have become Neocon-lite. Rather than give our time to the NDP perhaps we should think of forming committees of correspondence to discuss and agitate for empowerment of the community, cooperative development and self-management?
Friday, April 1, 2005
WHO WILL CONSUME IN WALLY WORLD?
Henry Ford was that rarest of breeds, an intelligent capitalist. He realized the consumption of manufactured goods was limited by low wages. So he paid his production workers the highest wages in industry. They now had enough money to buy his cars and this ushered in the era of mass production/mass consumption that Antonio Gramsci called "Fordism". The other auto manufacturers denounced Ford as a "communist", but he laughed all the way to the bank. Wealthy before, he soon became the richest man in the world, thanks to mass consumption,
Fast forward 90 years. The capitalists are now trying to undo the "Fordist revolution." Their joy is in beating our wages and working conditions down to a minimum. Rather than a high-wage auto plants, low-wage Walmart and MacDo are the model. Factories are shut down and cheap imports brought in from low wage - lousy working condition countries like China. Governments seek to outsource and corporatize their functions and turn their former employees into insecure cheap labour
Since nothing occurs in isolation, a fact forgotten by our greed-stupified capitalists, "reverse-Fordism" creates a major problem. Who will buy the goods? Someone who goes from a well paid job to a poorly paid one is not about to buy an expensive appliance, a new car, or seek a mortgage. Every person whose job is lost or "privatized" at a lousy wage is a lost customer for some other industry. A rich minority can never sop up all the production that a reasonably well paid work force can – which was the major reason for having a high-wage work force in the first place.
In order to compensate, many people have been running up high levels of debt since their incomes don't match consumption desires. These debts become a chain around their necks and the result is a new kind of debt peonage. Welcome to the future... which turns out to be like 1890! However, large consumer debt, coupled with balance of payments problems (thanks to all those cheap slave-labor imports) coupled with high government debt is a rickety structure like a house of cards and the whole thing could come crashing down at any moment. But even if the debt problem did not exist, a continuing trend of low wages and poor working conditions will eventually lead to economic stagnation and crisis.
Fast forward 90 years. The capitalists are now trying to undo the "Fordist revolution." Their joy is in beating our wages and working conditions down to a minimum. Rather than a high-wage auto plants, low-wage Walmart and MacDo are the model. Factories are shut down and cheap imports brought in from low wage - lousy working condition countries like China. Governments seek to outsource and corporatize their functions and turn their former employees into insecure cheap labour
Since nothing occurs in isolation, a fact forgotten by our greed-stupified capitalists, "reverse-Fordism" creates a major problem. Who will buy the goods? Someone who goes from a well paid job to a poorly paid one is not about to buy an expensive appliance, a new car, or seek a mortgage. Every person whose job is lost or "privatized" at a lousy wage is a lost customer for some other industry. A rich minority can never sop up all the production that a reasonably well paid work force can – which was the major reason for having a high-wage work force in the first place.
In order to compensate, many people have been running up high levels of debt since their incomes don't match consumption desires. These debts become a chain around their necks and the result is a new kind of debt peonage. Welcome to the future... which turns out to be like 1890! However, large consumer debt, coupled with balance of payments problems (thanks to all those cheap slave-labor imports) coupled with high government debt is a rickety structure like a house of cards and the whole thing could come crashing down at any moment. But even if the debt problem did not exist, a continuing trend of low wages and poor working conditions will eventually lead to economic stagnation and crisis.
NATIVE LAND CLAIMS THREATEN THE CORPORATE STATE!
One of the major hurdles activists face is the underlying philosophy of this culture, one that sees everything as disconnected. Thus, people do not see the reality that "an injury to one, is an injury to all," nor do they see that a victory by one group of oppressed is a victory for all the oppressed.
Typical of this sort of ignorance is the far too common negative attitudes toward Native struggles, most particularly land claims. These attitudes are encouraged by the corporate media, since land claims threaten the corporate state. This observation seems a common place among the libertarian left - after all land claims mean the potential loss of corporate control over vast amounts of minerals, water and timber.
But there is more to it than just resources. Native People, after centuries of oppression, cultural genocide and racism are standing up and fighting back. Yes, there are corrupt Indian bureaucrats and would-be capitalists among them. Yes, cigarette smuggling and casinos exist as well. However, consider the possibility of Native People reaching back into their traditions, developing a cooperative, sustainable and communitarian economy on their territories.
One small example of Native communal developments is found in the Innu Reserve of Essipit on Quebec’s North Shore. According to an article in the Montreal Gazette Feb. 27th entitled “A Success”, the Innu have financed a number of successful industries and have become the main economic force in the area, keeping the neighboring white town of Les Escumins alive. There is a certain amount of jealousy involved as the white municipality complains that First Nations People have an unfair advantage since their Band Council can invest in profit making enterprises while their municipal govt. can only invest in non-profit services and infrastructure. (Rather than being jealous, change the stupid law or find some way around it.)
Should Native People continue in a communitarian direction and reject the corporate capitalist model, Canada would have these islands of alternative economic development based on a revitalized Native culture. Most likely, First Nations alternative economies would then link up with existing non-Native cooperatives. Both groups would support each other. One result (rather than jealousy) could be a growing desire for a communitarian approach and local control of development in non-Native communities. All of this would be bad news for the greed heads.
Typical of this sort of ignorance is the far too common negative attitudes toward Native struggles, most particularly land claims. These attitudes are encouraged by the corporate media, since land claims threaten the corporate state. This observation seems a common place among the libertarian left - after all land claims mean the potential loss of corporate control over vast amounts of minerals, water and timber.
But there is more to it than just resources. Native People, after centuries of oppression, cultural genocide and racism are standing up and fighting back. Yes, there are corrupt Indian bureaucrats and would-be capitalists among them. Yes, cigarette smuggling and casinos exist as well. However, consider the possibility of Native People reaching back into their traditions, developing a cooperative, sustainable and communitarian economy on their territories.
One small example of Native communal developments is found in the Innu Reserve of Essipit on Quebec’s North Shore. According to an article in the Montreal Gazette Feb. 27th entitled “A Success”, the Innu have financed a number of successful industries and have become the main economic force in the area, keeping the neighboring white town of Les Escumins alive. There is a certain amount of jealousy involved as the white municipality complains that First Nations People have an unfair advantage since their Band Council can invest in profit making enterprises while their municipal govt. can only invest in non-profit services and infrastructure. (Rather than being jealous, change the stupid law or find some way around it.)
Should Native People continue in a communitarian direction and reject the corporate capitalist model, Canada would have these islands of alternative economic development based on a revitalized Native culture. Most likely, First Nations alternative economies would then link up with existing non-Native cooperatives. Both groups would support each other. One result (rather than jealousy) could be a growing desire for a communitarian approach and local control of development in non-Native communities. All of this would be bad news for the greed heads.
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