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Commentary: How our entire economy is being outsourced

by Ted Sherman

Created on: February 23, 2007   Last Updated: April 09, 2007

The massive layoffs at Ford, Chrysler and General Motors could total as high as 100,000 before year's end. Outsourcing started as a convenience several decades ago, but now it has become a creeping disease that threatens to destroy the American economy.

It may not happen for a couple of years, but it is inevitable if the current trend continues. Who's to blame? What difference does it make now? The necessary step is to stop the bleeding before the body dies.

First, and most obvious is the auto industry. Even FEMA and the Bush couldn't possibly be as stupidly shortsighted as the US carmakers. When Volkswagen brought its little car into the country in the 1950s, the US carmakers laughed and kept building their big, overpriced gas hogs. When Toyota and other Asian manufacturers brought in more efficient, cheaper cards, the US carmakers laughed and began making even bigger and more expensive gas hogs.

The trend continued into this century, and now all the US carmakers can sell are grossly overprices, overweight and overgassed giants. Suddenly, someone who keeps the books said to the bosses: Hey, all the Asian and European carmakers have taken our business away. And then the bosses said: Oh, gosh. Let's fire thousands and thousands of workers, try to merge with other gas hog makers and, by the way, give ourselves millions of dollars in bonuses.

Of course, it isn't only the US auto industry that has outsourced itself almost into oblivion. Go to any department store and look at the labels on clothing, electronics, toys or any other products. You may not find any that were made in the US. You can thank the big chain stores like Wal-Mart for that. In fact, if you want to thank anyone in Wal-Mart, you'll have to do it in Spanish. That good old American store has outsourced virtually all of its employees who are US citizens.

Try to call for tech help for your computer, or check your bill with a chain store, then by listening to accent, try to figure out what country's workforce got the call.

The reason for all this outsourcing in most people's minds is that foreign workers get much less money. That's true ... for now. But what about a generation from now? Will your kid be happy to get a job that pays a buck and hour for an 80-hour workweek? If the trend continues at its current rate, it could happen here.






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