$13 Billion export to US may not be worth taking the whole blame for outsourcing
$13 Billion export to US may not be worth taking the whole blame for outsourcing
Election year 2004 in India and US is supercharged with the issue of outsourcing. While BJP is projecting “feel good effect” in India, US is in the middle of economic stagnation and the US population is blaming India and some other countries for the job losses in US. US Republicans in general support outsourcing from India and other countries. They believe cheap imports of services from India and goods from China are a win-win for all. It is a game of who can use whom and get richer. In India politicians and business leaders are lured by “US Dollars” coming in truckload in exchange of cheap labor of no use in the country any way. The US corporations are busy pushing their stock prices up and saving labor cost through outsourcing can only do that. The problem in this “good for all” theory is that in US people are in extreme debt and have a home mortgage to pay. A loss of job in US is much more catastrophic than in India. In US people do not have extended families. They live on their own. In India, if some one loses his/her job or becomes ill, other family members support that situation. In US people depend on the unemployment checks from the department of labor. In US it is true that every month approximately one million people lose their jobs and another million get jobs. However, even if a small percent of them cannot get reemployed in a short time, the unemployment benefits run out and qualified people start taking lower category low paying jobs. People lose their home, belonging and even sometimes their family. It is difficult for Indians to understand this. In India even the private sector does not hire and fire the same way American companies do. Consequently, it is a major problem in US. US is going through a major structural and economic readjustment. The next few years, no matter who is the president and which party controls the Senate and the House, it will be extremely difficult for some in US. Wealthy Americans has nothing to worry except higher prices for food, Gasoline etc. Common Americans will go through the trauma of structural readjustment of standard of living and economic securities. In the middle of all this common Americans are blaming India for taking away their jobs and the right to live a dignified life. American corporations are even saying, by outsourcing cheap labor and goods, they can save enough money to hire Americans for better jobs. It may be true but is it worth for India to take this blame? After all a $13 billion in exports to US is not worth getting branded as economic rouge nation stealing US jobs. India should come out clean by saying to all parties: India is open for anyone who wants to invest in India and prosper. However, please do not blame your internal problems on India. India like all other countries solicits investment, growth and open trade but does not intentionally steal jobs from other countries. Indian Government must at this stage take all tax and other fiscal incentives out for firms exporting to US and other countries that comes under the area of outsourcing.