Obama: US must fight protectionism... Indian outsourcing industry to grow to $200 billion

[somone]

http://profit.ndtv.com/news/show/india-us-must-together-fight-protectionism-obama-118858?pfrom=Business

India, US must together fight protectionism: Obama
NDTV Correspondent, November 8, 2010 (New Delhi)

The issue of outsourcing and its correlation to rising unemployment in the US seems to have finally been put to rest.

In his address to Members of Parliament in New Delhi, US President Barack Obama said, "Together, we can resist the protectionism that stifles growth and innovation. The US remains — and will continue to remain — one of the most open economies in the world." He said the US would work with India to make global economic recovery strong and durable. In his speech, he said: "As global partners, we can promote prosperity in both our countries... Together, we can create the high-tech, high-wage jobs of the future.

"As G-20 partners, we can make sure the global economic recovery is a strong and durable recovery," he said, adding the two nations are ready to implement civil nuclear agreement that will help meet India's growing energy needs and create thousands of jobs for both the US and India. “When American people ask me why you are visiting India, I want to say that look India just created 50,000 jobs and so we should not be talking about protectionism. It is not a one way street," Obama said.

And if that was not enough, Prime Minister Manmohan Singh came through with a spirited defense of the outsourcing industry going as far as saying that India was not in the business of stealing jobs from the US. "India is not in the business of stealing jobs from the US. Our outsourcing industry I believe has helped to improve the productive capacity and productivity of the American industry and the new deals that have been sealed have been in infrastructure," Prime Minister Manmohan Singh said...

Surely, it is good news for the Indian outsourcing industry that is aiming to grow to $200 billion by the end of the next decade.

[Catherina]

1. Dear Mr President, if you want to create jobs, start building windmills

right here in the good old U.S. of A.

[Starry Messenger]

2. Am I taking crazy pills?

If there is a job created over in another country, then it isn't being created here. Mobile capital does not equal mobile labor. I mean, that's kind of a long fucking commute, right?

[abelenkpe]

27. I work for a company

that opened satellite offices in India about ten years ago. When they opened the India offices we had about 500 employees. Everyone was bummed and resisted the calls to go to India to train our employees overseas. People still resist and many fear management is maneuvering to get rid of our jobs altogether. Who knows maybe eventually they will but right now we split the work evenly and things have worked out quite well. Ironically the parent office in the states has continued to grow. They honestly can say hiring people in India allowed them to grow and hire more here. Don't think that is true for large corporations though. They are able to take on more work and compete globally with similar businesses in other countries that offer tax incentives and don't have to provide employee health care (because these other businesses are in countries that provide single payer health care.) US companies (it's been explained) utilize workers in places like India for two main reasons: to compete with countries that offer tax incentives and to compete with countries who have single payer care. See our government is f-ing everyone over by not providing single payer and by having the stupidest trade agreements ever devised by mankind. It's either an evil plan devised by an evil genius or an act of collective stupidity. Can't decide which....

[Starry Messenger]

29. It's free market chaos.

I hate to be a bummer but what happens if your company gets taken over by one of the big guys? Who do you imagine is getting laid off?

[abelenkpe]

33. We would

but no worries there. Bigger places have tried to buy this place over several times over the past 12 years. Then they try to starve us of work for refusing. Company may certainly go under but won't be bought out. I'm no fan of outsourcing just saying this is one example of it actually creating jobs here. This is not true of large corporations though...those are just jobs lost forever here given to workers in other countries.

[KarenS]

3. Words fail me. n/t

[Motown_Johnny]

4. I'm a protectionist, always have been and always will be

I am also an Obama supporter, but I seriously disagree with him on this

[whathehell]

13. I'm a protectionist too, damn it...

and this pisses me off.

Good god..If there's any way to primary this guy and WIN in '12, I say "Go for it".

[mzmolly]

16. The OP is misleading.

“When American people ask me why you are visiting India, I want to say that look India just created 50,000 jobs and so we should not be talking about protectionism. It is not a one way street," is the actual quote from Obama. He's saying that we can promote a win/win, not a win/lose.

[GeorgeGist]

26. Did you happen to notice ...

that the quote is actually illiterate.

[mzmolly]

28. I think the Presidents quote

is literate. ;) Then again, I'm also accused of being illiterate on occasion.

[highplainsdem]

5. Oh, good. He's on the side of Indian workers.

[Exilednight]

6. Does anyone else find it disturbing that we are selling arms to .........

Pakistan and India at the same time. Didn't we do this with Iraq and Iran when Reagan was president?

[leftstreet]

7. and we're not even getting any mangoes outta the deal

:cry:

[nc4bo]

8. Pardon me whilst I vomit. nt

[durkermaker]

9. yet, we spend a fortune on the pentagon, because of 'defense'

defending ourselves against protectionism, so that people can take everything we have

[Starbucks Anarchist]

10. I think the 50,000 refers to this:

http://www.google.com/hostednews/ap/article/ALeqM5jDhWNvj-KgnXtfilvMa-8VXMjwiA?docId=8376ef7584f149fcb19a68f67f9fae29

(snip)

India is also a growing investor in the U.S. From 2004-2009, Indian companies invested over $26 billion in the U.S., creating more than 55,000 jobs, according to KMPG.

[avaistheone1]

19. From the same article

"Those deals pale in comparison with Reliance Power's recent China purchases. Less than two weeks ago, Reliance Power announced a $10 billion order for power generation equipment for its coal-based power plants from China's Shanghai Electric Group Co. Ltd., and secured a $12 billion financing package for Chinese exports from a consortium of Chinese banks."




Seems like the bottomline is that India is making better deals and is making them in favor of China, not the US.

[Starbucks Anarchist]

20. So those 50,000 US jobs mean nothing?

Okay. :eyes:

[avaistheone1]

24. It is estimated that at least 350,000 American IT jobs have been outsourced to India

in just that one industry, not even considering any others.


I really don't believe there will even be 50,000 new jobs. There may be jobs that support 50,000 existing workers, but 50,000 new jobs - highly doubtful. We'll see, let's hope you are right.

[OHdem10]

23. Every country looks our for their own self interest, especially India

except the US.

I suppose it is US Businesses best interest.

[durkermaker]

11. I think it's good that he is saying this

because i've known all along that he's always been on that side. anyone who really parsed his campaign h-1b visa statements knew where he really stood, and isnt surprised by anything other than his being open about it

[B Calm]

12. So I guess repealing NAFTA is not in his plans either. . .

[nc4bo]

14. I'd say that is completely off the table. nt

[mzmolly]

15. That's not quite what he said.

"When American people ask me why you are visiting India, I want to say that look India just created 50,000 jobs and so we should not be talking about protectionism. It is not a one way street,"

[sabrina 1]

17. He calls outsourcing, 'protectionism'? What happened to this man?

He was an intelligent, articulate, thoughtful candidate who would never have said something like this. Is there something in the water in DC?

[datan]

21. no

he's not calling outsourcing protectionism. Outsourcing is the opposite of protectionism.

[sabrina 1]

31. I know it is the opposite of protectionism, but it hasn't stopped,

has it? And we are about to cave on the Bush tax cuts. So, why are we being lectured about protectionism when there appears to be no change of policy on outsourcing of American jobs? My question was, since we are still outsourcing jobs, is there any reason to even mention the word 'protectionism'? I am for it at this point, until American jobs have been restored. We are responsible to our own country first. Obama seems to believe we have some responsibility to India. That was fine before Americans lost their jobs and their homes. Charity begins at home. When Americans are taken care of, then we can worry about creating jobs elsewhere.

[otohara]

18. Barf

:puke:

This is upsetting.

[dgibby]

22. So, he's saying India created 50,000 jobs.

Great; however, I have a few questions:

How many jobs have been outsourced to India?

Who got those jobs that were created?

How much do those jobs pay in comparison to the jobs that were lost?

Are those jobs permanent or temporary?

What about benefits? Are there good benefits with those jobs that were created here?

Inquiring minds want to know.

[maryf]

25. This line is very scary...

"the two nations are ready to implement civil nuclear agreement that will help meet India's growing energy needs and create thousands of jobs for both the US and India." What is that agreement??? what kinds of jobs exactly???

[Marr]

30. Well, a few of us will have to get India's infrastructure all revved-up so

it can handle *all* of our fatcats' cheap labor requirements.

This may be the most sickening thing I've heard from Obama, and probably the least surprising. He's a neoliberal, cheap labor, corporate "Democrat". They love this sort of thing.

[durkermaker]

32. even in his campaign, he favored raising H-1b, so why is anyone surprised?

anyone who read the fine print always knew where he stood