It’s about jobs. Why is that so difficult to understand.
90% of Americans have been affected directly or indirectly by outsourcing. You can call it off shoring but that doesn’t change the result.
There is one person that could answer ALL the questions surrounding BAIN.
That’s Mitt Romney.
But he won’t do it.
‘Axelrod’s response? Good luck explaining the difference between “outsourcing” and “offshoring” to a voter in Ohio. Or anywhere’.
“The Washington Post gave them repeated opportunities to respond in detail to the questions that were raised, and they chose not to comment,” Axelrod said. “They may have been trying to figure out his position on the immigration question, which has taken several days as well.”
From : http://www.businessinsider.com/barack-obama-mitt-romney-bain-capital-private-equity-outsourcing-offshoring-2012-6
‘Tax Incentives to Keep Jobs in U.S. Blocked in Senate’
Sep 28, 2010
‘The U.S. Senate failed to advance legislation that would create tax breaks for companies that move foreign-based jobs to the U.S. and penalize those that send jobs offshore’.
‘The 53-45 vote was short of the 60 needed to move the measure forward; four Democrats and independent Joe Lieberman of Connecticut voted with 40 Republicans against allowing formal consideration of the bill’.
‘The offshore-jobs legislation would waive for two years the 6.2 percent payroll tax for employees hired by U.S.-based companies to replace workers who performed the same job overseas. That would save companies about $1 billion in taxes over the next three fiscal years, according to the Joint Committee on Taxation’.
From : http://www.bloomberg.com/news/2010-09-28/senate-republicans-block-tax-incentives-to-move-foreign-based-jobs-to-u-s-.html
President Obama : ‘”There is no reason why our tax code should actively reward them for creating jobs overseas,” he said. “Instead, we should be using our tax dollars to reward companies that create jobs and businesses within our borders.”
From : http://www.drudge.com/archive/137574/obama-end-outsourcing-tax-breaks
‘The problem with this history, however, is that it runs counter to Mitt Romney’s own narrative. And he only has himself to blame’.
‘On the campaign trail, Romney has a tendency to talk about a job creation record. Specifically, that he helped create 100,000 “net jobs.” As we’ve previously reported, it’s a figure that no one, including Romney, can actually calculate. Bain Capital never tracked the number of jobs it created, let alone the number it destroyed or outsourced. Nor did it track any collateral employment damage, such as a mom-and-pop stationary store put out of business by Staples (SPLS)’.
From : http://finance.fortune.cnn.com/2012/06/22/romney-outsourcing-bain/
Here’s my response to your actual reply :
Re: CSI – The call centers were a new creation with the help of Bain’s money and management.
Please cite a source (since no one is required to keep a record) that these jobs in Eurpoe and Japan only ‘serviced international customers of U.S. companies in their local languages’.
Because THAT would be a HUGE news scoop!
Here’s what the SEC filings show – ‘Initially, CSI employed U.S. workers to provide these services but by the mid-1990s was setting up call centers outside the country’.
‘Two years after Bain invested in the firm, CSI merged with another enterprise to form a new company called Stream International Inc. By 1997, Stream was running three tech-support call centers in Europe and was part of a call center joint venture in Japan, an SEC filing shows. “The Company believes that the trend toward outsourcing technical support occurring in the U.S. is also occurring in international markets,” the SEC filing said’.
And as to Modus : ‘The corporate merger that created Stream also gave birth to another, related business known as Modus Media Inc., which specialized in helping companies outsource their manufacturing. Modus Media was a subsidiary of Stream that became an independent company in early 1998. Bain was the largest shareholder, SEC filings show’.
‘Modus Media grew rapidly. In December 1997, it announced it had contracted with Microsoft to produce software and training products at a center in Australia’.
‘Two years later, Modus Media told the SEC it was performing outsource packaging and hardware assembly for IBM, Sun Microsystems, Hewlett-Packard Co. and Dell Computer Corp. The filing disclosed that Modus had operations on four continents, including Asian facilities in Singapore, Taiwan, China and South Korea, and European facilities in Ireland and France, and a center in Australia’.
From : http://www.washingtonpost.com/business/economy/romneys-bain-capital-invested-in-companies-that-moved-jobs-overseas/2012/06/21/gJQAsD9ptV_story_1.html
As to Dr. Kimura’s report.
You cited 1(one) count them report by 1 (one) count them economist on a study of outsourcing to JAPAN’S economy.
Here’s a hint. Japan’s economic dynamics are different then the Unitred States.
‘You left out two important points from Dr.Kimura.
1. ‘Unfortunately, the dataset does not permit analyses of the skill structure of labor that is directly employed’.
Such as moving relative low wage call center jobs from here to even lower wage overseas.
2. ‘In East Asia, at least, there is evidence that domestic workers ought to welcome offshoring by their employers’.
Here’s a hint. We are not Asia. The dynamics of our employment are not equal to Japans.
See : http://economistsview.typepad.com/economistsview/2007/12/job-creating-of.html#more
Oh and the link above is the article you referenced.
Conservative – ‘Corporate Software Inc. helped distribute U.S. software around the world. The overseas call centers referenced in the WaPo article were based in Europe and Japan, and serviced international customers of U.S. companies in their local languages. Modus Media also helped American companies sell their products internationally.
Fukunari Kimura, Professor of Economics at Keio University in Japan has done a comprehensive study to determine the effects of offshoring on domestic operations. It was discovered that “they experience greater job creation at a rate as high as 8%”. The “statistics” and “formal analysis both suggest that globalising manufacturing firms are less likely to reduce their domestic employment than other firms. Firms that go abroad expand employment at home relative to non-globalizers.”