The U.S. has now shed 605,000 jobs since the beginning of the year; The U.S. unemployment rate hits 6.1%, highest level in five years; Employers slashed 84,000 jobs in August, steeper cuts than analysts expected[2].
With no doubt, out sourcing of the American production system to the lower labor rate countries has considered as the most beneficial strategy which has led to the higher profit achievement for the business runners.
Don’t you think that the allocation of one quarter gained benefit of the out sourced income is not enough to tackle the current unemployment in the United States?
References:
- [1] Aljazeera news, “China trade dominance looms over US” followed by URL: http://english.aljazeera.net/news/americas/2008/10/20081021143831584145.html
- [2] Lose Angeles Times “The Unemployment and presidential campaign” followed by URL: http://www.latimes.com/news/nationworld/nation/la-fi-economy6-2008sep06,0,3121791.story
10 comments:
Brad regarding to your question...Undoubtedly, U.S. is confronting high unemployment rate and many of the BIG TIME businessmen are trying to help the US economy…for instance, Buffett, the world's richest person as ranked by Forbes Magazine with wealth totaling $62 billion, have said that U.S. Government should increase taxes on the wealthy to help pay for the recently-passed bank rescue, which is designed to end the financial crisis and eventually help to reduce unemployment rate of the U.S. (http://www.bloggingstocks.com/2008/10/27/warren-buffett-i-should-be-paying-more-in-federal-taxes/)
Buffett's stance demonstrates that there is at least one person of high income and/or wealth (and probably many more) who believe upper-income groups should be paying more in federal taxes each year. (http://www.iht.com/articles/ap/2008/10/02/business/NA-US-Buffett-Economy.php)
Policymakers have to look for new instruments that would help to reduce the number of the unemployed people and prevent disastrous social outcomes from unemployment. However, it is still remains unclear what newly appointed President of U.S. Barack Obama would do to improve the instable economy of the U.S.
Hey…. Brad this is a very good topic to know about the world economic. Today unemployment is series news in US. The US new president Mr. Obama said it is a big challenge to them to solve the economic & unemployment problem. It is not going to be quick and it is not going to be easy for us to dig ourselves out of the hole that they are in.”But I’m sure Obama is a intelligent person he can solve the problem he may take some time.
According to the latest figures released by the US Labour Department, 240,000 jobs were lost last month, which is the tenth consecutive month that the US labour market has suffered.
The jobless rate now stands at 6.5 percent which is the highest rate in 14 years with 1.2 million jobs lost in 2008, although this is still within economist estimates of 8 percent.
The state of the labour market is currently deteriorating faster, as it was predicted that 159,000 jobs would have been lost in September but the true figure is nearly double that.
In the last ten months alone, 1.2 million people have lost their jobs and with 284,000 jobs lost in September, the labour market is gaining negative momentum.
The downturn in the economy has meant that cuts are being made and the workforce being trimmed across all the main industry sectors.
http://www.investmentmarkets.co.uk/20081110-2668.html
Now new president Obama said that Obama believes that the minimum wage should be a “living wage” and argues that the burdens of globalization are placed on the backs of workers. He argues that tax cuts for the rich do not create jobs and that unions should be strengthened.
(google)
In my opinion the first we should now why the U.S out sourcing,as we know out sourcing is use for reduce the cost,American invest for china are looking for the lower labor and the cheaper sourcing.
unemployment become big problem in United States this day because so many United States company trying to increase their profit and lower their cost by outsourcing to Asia country like China and Thailand. to solve this problem, United States government should have the solution example; open new sector which absorb employ, reducing tax for company.
According to the latest figures released by the US Labour Department, 240,000 jobs were lost last month, which is the tenth consecutive month that the US labour market has suffered.
The jobless rate now stands at 6.5 percent which is the highest rate in 14 years with 1.2 million jobs lost in 2008, although this is still within economist estimates of 8 percent.
The new US president Barack Obama is doing his best to solve this problem by restructuring firms and give new jobs and decrease the income tax for the poor and middle income people
Well, as i said before, globalistation isn't profiting every country in the same way, and its natural for a company to outsource to a cheaper labour source.Tax breaks are not the ultimate solution,Bill clinton did that, without having a desired result.A minimum wage would increase cost of production, pushing companies to outsource more. The idea of increasing taxes to companies that outsource sounds more credible to me, because the outsourcing companies would pay more taxes, hence more finances to the government to settle her unemployment squabbles.
Well,I think that the benefits of the out sourced income is NOT enough to tackle the current unemployment in the United States.Just imagine?!The economy must create about 100,000 jobs a month just to keep pace with population growth.
Economists said the deepening number of job losses is a clear sign that the economy’s troubles are far from over. Dean Baker, co-director of the Center for Economic and Policy Research in Washington, noted that the steepest declines were in the manufacturing sector, driven by deep cutbacks in the auto industry, and in temporary employment services.
Moreover,democrats argue that a second package of stimulus payments is needed to give the economy a jolt. Nevertheless,republicans accuse Democrats of planning to raise taxes, which they say would damage the economy more.
http://articles.latimes.com/2008/sep/06/business/fi-economy6
I would say the out sourced income may help the country BUT not much that can solve this problem.Therefore, America should think of a way to solve this before it goes worse!
Unemployement is big issue for any country.Such a country like America it is not seems well when unemployement rate is higher.America do their business and they expend their business such countries like China,Thailand,India because of low labou cost,material cost and increase the profit level.
To be honest, I think business outsourcing jobs (if they can do it profitably) should be supported, because there’s nothing about people in your own country that make their jobs more valuable than the jobs of those people overseas.
If it’s a worry about poorer service/quality, let businesses sort that out for themselves, surely if things go badly they’ll realise that outsourcing was a bad idea. If things go well, they’ll save money and the consumers will benefit from increased competition in the market.
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