New Program to Help Corporations "Take Advantage of Low Labor Costs" Abroad

[dajoki]

David Sirota's blog
Report: Obama Launches New Program to Help Corporations "Take Advantage of Low Labor Costs" Abroad
by David Sirota | August 6, 2010 - 10:02am
http://www.smirkingchimp.com/node/30574

In recent months, President Obama reversed his campaign promises on trade issues - first by dropping his pledge to renegotiate NAFTA and then by pushing to pass NAFTA-style trade agreements with South Korea, Panama and Colombia. 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.

[Donnachaidh]

1. political three card monti

go on a road trip and make all sorts of blustering speeches about how MUCH they are doing to bring jobs, jobs JOBS to the unemployed -- and then institute REAL programs to aid corporations in taking even MORE jobs away from the unemployed.

There's that CHANGE we can believe in again, right? :sarcasm:

[bluethruandthru]

2. Wait - what???

I feel like I stepped into some parallel universe. Our tax dollars are being used to train people from other countries to do jobs that could be done here?
How can this be?

[FiveGoodMen]

4. You'd never know the Democrats were in charge, would you?

Maybe they're not.

(Either not in charge or not Democrats)

[blindpig]

9. Capital is in charge

Same as it ever was.

[FiveGoodMen]

10. Same as it ever was

So much for change.

[Odin2005]

19. If voting changed anything they would make it illegal. --Emma Goldman

[aquart]

3. This is insane.

My grandmother was a garment worker. She fed herself and her family for years. Then she retired on her union pension. Sorry Obama doesn't think she added much to the economy.

[dajoki]

6. My mother...

was a garment worker for 50 years and also retired with her pension.

[aquart]

17. Changed their lives, knowing they had that protection.

My grandmother wasn't rich. Not by a long shot. But she also wasn't frightened. And she knew that ws because of her union. And because she stood up for it.

[MindPilot]

5. US government to the American worker:

"Fuck off and die."

[FiveGoodMen]

11. American voter to US government:

"Please, sir, can I have some more?"

[Brickbat]

7. I refuse to support someone who actively works against my interests.

This is getting disgusting. The garment industry didn't do much for the economy? Um, WTF? What the fuck is his fucking problem?

[inna]

8. K&R, and please see this:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=8888070&mesg_id=8890021

[leftstreet]

12. Oh wow, thanks for posting that

I completely missed it

[Starry Messenger]

13. Meanwhile NBC is producing a new comedy series "Outsourcing"

Bet it's a lot of laffs. If you have a job in this country. http://www.reuters.com/article/idUSTRE66U03A20100731

[Political Tiger]

14. LOL! This "federal agency run by a hand-picked Obama appointee"

is the USAID. I guess that's why David Sirota purposely decided to not name this "federal agency run by a hand-picked Obama appointee" because he wanted to make it sound like this was some secret organization, and he is counting on people not looking up the facts and just taking his word for it. Sad.

What reason would Sirota have for not naming this "federal agency run by a hand-picked Obama appointee" other than as an attempt to deceive?

And what difference is there between Sirota and someone like Andrew Breitbart, who employees the same tactics? It's okay when the left is deceitful but not when the right is??

Here's some info on what Sirota describes only as "a federal agency run by a hand-picked Obama appointee":

The United States has a long history of extending a helping hand to those people overseas struggling to make a better life, recover from a disaster or striving to live in a free and democratic country. It is this caring that stands as a hallmark of the United States around the world -- and shows the world our true character as a nation.

U.S. foreign assistance has always had the twofold purpose of furthering America's foreign policy interests in expanding democracy and free markets while improving the lives of the citizens of the developing world. Spending less than one-half of 1 percent of the federal budget, USAID works around the world to achieve these goals.

USAID's history goes back to the Marshall Plan reconstruction of Europe after World War Two and the Truman Administration's Point Four Program. In 1961, the Foreign Assistance Act was signed into law and USAID was created by executive order.

Since that time, USAID has been the principal U.S. agency to extend assistance to countries recovering from disaster, trying to escape poverty, and engaging in democratic reforms.

MORE:
http://www.usaid.gov/about_usaid/

[dajoki]

15. No matter what you call it...

the results are the same, tax payer money funding cheap labor for big corporations overseas.

[Political Tiger]

16. The problem is that people like Sirota have to personalize things

and blame Obama.

His opinion piece is called "Obama Launches New Program to Help Corporations "Take Advantage of Low Labor Costs" Abroad."

Well, no, that's a big fat lie!

Obama is NOT launching some "New Program to Help Corporations "Take Advantage of Low Labor Costs" Abroad."

The USAID, not Obama, has, according to InformationWeek where Sirota selectively lifted his info, "has launched a $36 million program to train workers, including 3,000 specialists in IT and related functions, in South Asia....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."

And as InformationWeek points out, "Sri Lanka's outsourcing industry is nascent" and of the $36 million being spent, only $10 million of that is coming from the US "while its private partners are investing roughly $26 million."

Of the 10,000 jobs they are trying to help create in Sri Lanka, only 3,000 are related to "outsourcing."

Now, I know the buck stops with Obama, but the reality is that there are thousands of agencies run by the US government, and USAID is one of them.

But Sirota makes it sound as if Obama, and Obama alone, came up with this program and set it in motion, and considering all the things he has on his plate, it's preposterous to even try to make such a claim. Here's a list of U.S. Government Departments and Agencies: http://www.usa.gov/Agencies/Federal/All_Agencies/index.shtml

Does Obama personally have his hand in every decision each and every one of these thousands of agencies do? It would be humanly impossible for him to do so.

"USAID is contributing about $10 million to the effort." That's barely a drop in the bucket considering the budget of the United States.

Of course, outsourcing of US jobs is a legitimate concern. However, there's no reason to believe these 3,000 people being trained are going to take away only, if any, US jobs.

Outsourcing is a big problem, but it's not Obama's fault. If anyone is to blame, it's us, the consumers, who demand cheap computers and other goods, and the corporations that outsource jobs to satisfy our insatiable demand for cheap merchandise.

Trying to blame Obama personally for everything is nonconstructive. He's only one man.

[Odin2005]

20. USAID is a tool of American Imperialism. Always has been.

[Odin2005]

18. So, Obama fanboys, what's your rationalization for THIS bullshit?

Don't you guys DARE insist I support this BACKSTABBEFR! :grr:

[maryf]

21. K&R, keep spreading the truth!

:fistbump:

[dajoki]

22. Thanks Mary!!

:pals:

[maryf]

23. anytime dajoki!

:pals: