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Report: Obama Launches New Program to Help Corporations "Take Advantage of Low Labor Costs" Abroad

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Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 12:56 PM
Original message
Report: Obama Launches New Program to Help Corporations "Take Advantage of Low Labor Costs" Abroad
Edited on Thu Aug-05-10 12:57 PM by Better Believe It
Report: Obama Launches New Program to Help Corporations "Take Advantage of Low Labor Costs" Abroad
by David Sirota
August 5, 2010

Now, with the unemployment crisis persisting, the key jobs question is once again front a center in American politics. Specifically: How do we create jobs here at home and build our most valuable 21st century industries?

The first and foremost answer is that our government should stop doing stuff like the program described in this stunning new report from Information Week:

U.S. To Train 3,000 Offshore IT Workers
Despite President Obama's pledge to retain more hi-tech jobs in the U.S., a federal agency run by a hand-picked Obama appointee has launched a $22 million program to train workers, including 3,000 specialists in IT and related functions, in South Asia.

Following their training, the tech workers will be placed with outsourcing vendors in the region that provide offshore IT and business services to American companies looking to take advantage of the Asian subcontinent's low labor costs...

The outsourcing program (is) sure to draw the most fire from critics. While Obama acknowledged that occupations such as garment making don't add much value to the U.S. economy, he argued relentlessly during his presidential run that lawmakers needed to do more to keep hi-tech jobs in IT, biological sciences, and green energy in the country.


Now look, I'm all for a robust foreign aid budget - we don't do nearly enough to help the developing world. However, using foreign aid money to specifically help private corporations "take advantage of low labor costs" in the developing world - that's not "aid," that's rank taxpayer subsidization of for-profit exploitation.

Right now, Even if we do not reform our atrocious trade policies that incentivize the ongoing wage-cutting race to the bottom, the least we should be doing is investing every single available dollar we have in job training and job creation here at home. Doing the opposite - actually using public dollars to intensify that wage-cutting race to the bottom - is grotesque.

George W. Bush's administration was rightly criticized by progressives for publicly endorsing job outsourcing, and Obama's administration should be similarly taken to task for now putting taxpayer funds behind the previous administration's endorsement.

http://www.openleft.com/diary/19706/report-obama-launches-new-program-to-help-corporations-take-advantage-of-low-labor-costs-abroad

Read the full Information Week report at:

http://www.informationweek.com/news/software/integration/showArticle.jhtml?articleID=226500202




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Chulanowa Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:00 PM
Response to Original message
1. Report: Obama appointee is a douchebag, stabs president in the back on jobs
Now we wait to see if Obama says boo about it, though :popcorn:
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Poboy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:05 PM
Response to Reply #1
4. Hopefully Glenn Beck will report on this.
Maybe then this will stop.

Very sad that its come to this, but maybe the best we can hope for is instead of trying to get the Admin. to act like a Democrat is to send things like this to the right wing yackers and hope for the lunatics to pick up on it to bash the Admin. with. They always have more sucess than we do.
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Winterblues Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:02 PM
Response to Original message
2. Well in foreign countries businesses don't have to worry about Health Care Costs
So not only do they pay their employees less but they have much less overhead because their governments provide for Health Care for their citizens. This makes it extremely difficult for American business to compete and the Obama Administration doesn't seem willing to be a real help.
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ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:03 PM
Response to Original message
3. There is a reason Sirota's post is being rejected by many people
This has nothing to do with outsourcing. This is aid to train workers in countries to help build up these countries. How is training a worker in a country and employing them in that country outsourcing American jobs? If the U.S. trains a teacher or a technician in Afghanistan that is not outsourcing.

Ending outsourcing is done from within this country by eliminating loopholes and tax breaks for companies that take their operations overseas, and rewarding those that create jobs here.

Here's the State Department's press release

These four alliances are all with Sri Lankan private companies. USAID's investment of about Rs.1.1 billion is generating an additional Rs.2.9 billion investment from the private sector for a total investment of approximately Rs.4 billion in the construction, business process outsourcing, and apparel manufacturing sectors.

Go the site USAID and read about the initiatives. Programs like these are exactly the purpose of this agency. It wasn't too long ago that the administration was being criticized for being extremely slow in appointing a director. The fact is that aid to underdeveloped countries is an important part of American foreign policy.

It was created specifically for this purpose.

It's tough to balance foreign policy with domestic needs.





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HillbillyBob Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:22 PM
Response to Reply #3
7. Ok Why the hell are we paying to train aliens?
I did not get any offer to help train me for a new job when I needed it.
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notadmblnd Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:55 PM
Response to Reply #7
15. Yes you did. You may not have taken advantage of it, but it's there
I qualified for a 5500.00 pell grant to go back to school myself and I haven't received unemployment compensation the past 5 years I've been out of work. So if you want funds to retrain in another field, just jog on down to your local community college and hit the student aid office. They'll help you do the paperwork to qualify (anyone under 45k a year qualifies) for $$s to attend school.
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flyarm Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:26 PM
Response to Reply #3
9. Give us all a list of who it is being rejected by? other than our government sources..
Edited on Thu Aug-05-10 01:27 PM by flyarm
and the TALKING POINTS..
I got this info yesterday in approx 50 emails by people on my email lists..

It was posted here several times yesterday and not written by David!!

So please tell us who it is being rejected by..besides our government!!
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hedgehog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:58 PM
Response to Reply #3
17. I think that we're dealing with the power of the internet here- that
we are not paying to train someone for the local economy but rather a global competitor for American jobs.
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SunsetDreams Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 02:10 PM
Response to Reply #3
20. Thank you, I knew there was something up with this:
Edited on Thu Aug-05-10 02:11 PM by SunsetDreams
I couldn't get past this: "foreign aid money to specifically help private corporations "take advantage of low labor costs" in the developing world"

It just wasn't making sense to me, I was looking it up myself. Then I saw your post.
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Pirate Smile Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:06 PM
Response to Original message
5. How much to trust David Sirota:
Is Obama Meaner To Liberals Than To Conservatives?

Over at Daily Kos, David Sirota says President Obama is meaner to the left than he is to Republicans:

Yesterday at OpenLeft, I wrote a post about how the Obama administration unduly shies away from confrontation with Republicans and conservatives. Whether this is a product of the president's personal fetishization of conciliation or a product of a right-of-center political ideology none of us can know because none of us are in his head. But it's a pretty obvious statement of fact that the president has reflexively tried to avoid confrontation with the GOP, even when confrontation is necessary.
That said, one thing I failed to mention in my post yesterday should also be equally obvious: This president goes out of his way to be very confrontational towards progressives.

Periodically, we get clear examples of this. To name a few: There was the time that the Obama administration openly threatened progressive Democrats if they didn't agree to vote for more Afghanistan War funding; There was the time that President Obama publicly insulted progressives by claiming the public option wasn't important; There was the time that the Obama administration aggressively fought progressive legislation to audit the Federal Reserve; And, of course, there is the White House's over-the-top interventions in local Democratic primaries on behalf of corporate conservative candidates in their campaigns against progressive standard-bearers.


Okay, we have four examples here of the White House doing extremely nasty things to the left:

1. "Openly threatening" House Democrats who don't vote for the Afghanistan war bill. When you click on the link, it turns out that "openly" is quite a stretch:

The White House is playing hardball with Democrats who intend to vote against the supplemental war spending bill, threatening freshmen who oppose it that they won't get help with reelection and will be cut off from the White House, Rep. Lynn Woolsey (D-Calif.) said Friday.
"We're not going to help you. You'll never hear from us again," Woolsey said the White House is telling freshmen. She wouldn't say who is issuing the threats, and the White House didn't immediately return a call.
Woolsey said she herself had not been pressured because the White House and leadership know she's a firm no vote. But she had heard from other members about the White House pressure.


I'm sure there was some pressure, but this is a second-hand accusation that the administration denies, and which cites no specific examples of either anybody who exerted or received pressure. I'm sure the administration was lobbying for the war funding.

2. "President Obama publicly insulted progressives" -- this turns out to consist of a set of talking points from Organizing for America that contained the sentence, "The public option is just one small part of health insurance reform." That is the entirety of the way that "President Obama" "publicly" "insulted" progressives.

3. "The time that the Obama administration aggressively fought progressive legislation to audit the Federal Reserve" -- well, the White House did disagree with one amendment to the financial reform bill. You tell me if this -- again, it's Sirota's link -- sounds "aggressive":

The White House, Federal Reserve and Wall Street lobbyists are kicking up their opposition to an amendment to audit the Fed as a Senate vote approaches, Sen. Bernie Sanders (I-Vt.), the lead sponsor of the measure, said on Monday. ...

"I think momentum is with us. But I've gotta tell you, that on this amendment, you're taking on all of Wall Street, you're taking on the Fed, obviously, and unfortunately you seem to be taking on the White House, as well. And that's a tough group to beat," said Sanders.

He's been trading calls, he said, with Rahm Emanuel, the White House chief of staff.


Ooh, nasty!

4. "There is the White House's over-the-top interventions in local Democratic primaries on behalf of corporate conservative candidates in their campaigns against progressive standard-bearers." -- Sirota's evidence here is that the White House endorsed incumbents in Pennsylvania, Arkansas, and Colorado. Endorsing Incumbents is a completely pro-forma exercise. George W. Bush endorsed Arlen Specter over Pat Toomey in 2004.

Have these endorsements been "over the top"? Actually, they've been fairly perfunctory. While Obama did feature in ads for Specter and Blanche Lincoln, he never visited Pennsylvania or Arkansas before the primaries. Specter supporters publicly complained about the president's lack of support while, in Arkansas, many observers credited another president--Bill Clinton--for Lincoln's victory. As for Colorado, Obama's only traveled to Colorado once, and Romanoff has pulled even with Bennet in both the primary and general elections. This is the opposite of "over the top."

So the sum total of the slaps to the face of progressives consists of lobbying to support a bill in the House, a mild statement for OfA disagreeing with the left, another act of lobbying in the Senate, and a few low-key endorsements. Remember, Sirota is arguing here that these steps are more vicious than anything Obama has done against Republicans.

The massive enthusiasm gap between Democrats and Republicans has numerous causes, but surely one of them is the exquisite sensitivity to insult displayed by progressive activists.

http://www.tnr.com/blog/jonathan-chait/76790/obama-meaner-liberals-conservatives
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flyarm Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:23 PM
Response to Reply #5
8. yeah yeah yeah, lets just keep attacking the messenger..we will have no one left who was an ally
during the Bush years..it is really getting pathetic! The desparation to silence the truth tellers here is going off the charts!

The freaking busses underneath are over - flowing ..hundreds of new busses were brought forward to house all displaced dems ..any Idea how many more we will need? So we can get the order in now, ahead of time?

The only silly season I see is those who keep trying to keep truth from spilling out!
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Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:29 PM
Response to Reply #5
11. So do you have an opinion on the article and report?

I'm listening.

Personal attacks against liberal writers I pretty much ignore.
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Mojorabbit Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:42 PM
Response to Reply #5
12. I am sick of people
being thrown under the bus on this board. Not that that will stop anyone but I had to say it.
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Pirate Smile Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 02:51 PM
Response to Reply #12
23. Except the President. You guys are happy to toss him and assume the worst at all times.
Edited on Thu Aug-05-10 02:53 PM by Pirate Smile
Sirota has a record in dealing with Obama and we all know it so sorry if he doesn't have much credibility left with some of us.
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frylock Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 03:26 PM
Response to Reply #23
24. poor litlle fella
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SunsetDreams Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 02:17 PM
Response to Reply #5
22. Thanks for posting that, interesting read.
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HillbillyBob Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:19 PM
Response to Original message
6. Well I am all for helping those who need it in poor countries
but I resent the f&&k out of our jobs being sent to do it.
Oh and the garment/textile industries were a big part of our economy in NC now we haven't got much of anything.
We need to make this a big stink I put it on my facebook page yesterday.
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flyarm Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:28 PM
Response to Original message
10. K&R for the truthtellers!! eom
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pampango Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:46 PM
Response to Original message
13. It's just in Sri Lanka which is recovering from a civil war and includes helping the garment and
construction industries there, too.

"Under director Rajiv Shah, the United States Agency for International Development will partner with private outsourcers in Sri Lanka to teach workers there advanced IT skills like Enterprise Java (Java EE) programming, as well as skills in business process outsourcing and call center support. USAID will also help the trainees brush up on their English language proficiency.

USAID is also partnering with Sri Lankan companies in other industries, including construction and garment manufacturing, to help create 10,000 new jobs in the country, which is still recovering from a 30-year civil war that ended in 2009."

"Sri Lanka's outsourcing industry is nascent, but growing as it begins to scoop up work from neighboring India.

In addition to homegrown firms, it's attracting investment from Indian outsourcers looking to expand beyond increasingly expensive tech hubs like Bangalore, Hyderabad, and Mumbai. In 2007, consultants at A.T. Kearney listed the country as 29th on their list of the top 50 global outsourcing destinations."
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notadmblnd Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:49 PM
Response to Original message
14. I got a call from a contract house this morning about a Technical Rep level II
for the company I used to work for. Five years ago, I was earning 45k doing the same job. The compensation for the position now is $10.50. I think I'm going to keep the house cleaning job I was offered this morning. It's close to home, no stress, no investment for business attire and it sounds like fun. Knowing what I'm in store for going back to my old company at 10.50 an hour does not excite me at all.
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The Straight Story Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 01:58 PM
Response to Reply #14
16. Back at chase where I worked almost all the engineers are gone....
they started between 55-65k/year. Let go and now consultants are making 12.50/hr doing the same job.

Do those jobs count as 'lost'? same amount of people, but wages are going back into the pocket of chase.
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notadmblnd Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 02:15 PM
Response to Reply #16
21. definately counts as lost wages
it's a shame that they've allowed outsourcing to drive down wages in this country. It wouldn't be so bad if the price of things like utilities, food and rent went down along with the wages. I'm going to start the house cleaning job Monday and if I like it as well as I think I will, I'm going to work for $8.00 and have no stress what so ever to deal with. At this point in my life, if I'm going to work for low wages, it's going to be something I can be comfortable and happy with myself over.
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Touchdown Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 02:00 PM
Response to Original message
18. 3D chess
:hide:
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LatteLibertine Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-05-10 02:01 PM
Response to Original message
19. Outsourcing
our work is a result of the naked greed of the most wealthy. They have the money to pay US workers. They choose not to. It's also a tactic to undermine and destroy our unions.
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