Obama Targets Outsourcing, India Chuckles

It sounds like Barack Obama is proposing something that might actually make sense: closing a tax loophole that allows American companies to claim a deduction when they outsource American jobs. Well, it’s the though that counts.

Taking away incentives to ship American jobs to cheap foreign labor is a great idea, but what Obama is planning doesn’t go far enough. The problem is, that even if you tax these companies at the maximum rate, the labor in countries like India is so cheap that it would still be a bargain to outsource. India realizes that, and although they tossed a few stones at Obama, they don’t seem that worried about a decline in American jobs coming their way.

After all, many highly skilled Indian workers are American schooled and trained, and are every bit as talented as their American counterparts. They’ll just work for peanuts in India though. Peanuts to us, but over there, 10 or 15 thousand dollars a year is living pretty well.

How about this idea: take the worst outsourcing offenders, see what industry they’re in, and then take that stimulus money and create American industry, American jobs to compete with the outsourcers. Subsidize them long enough to cripple-or at least send a come on back if you know what’s good for you message to these companies. Competing with someone making a dollar a day is not competition. It’s exploitation. Time to play hard ball.

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6 Responses to Obama Targets Outsourcing, India Chuckles

  1. Kaurik says:

    You dont seem to be bothered by all the manufacturing jobs sent over to China. The call center / back-end jobs outsourced to India is a very small percentage of the jobs that have been permanently sent over to China. I guess it’s just that those who lost employment in the ‘rust belt’ or other places from where factories (yes, physical structures) were moved to China, are not as influential as the white-collar workers facing a threat at this time.

    How about subsidizing manufacturing and getting the pride back in the ‘Made in USA’ label? Time to play hard ball.

  2. rjjrdq says:

    Thanks for stopping by. I agree with your last line there. As for the China issue-check the archives, I’ve had plenty to say about China-none of it good. As far as referencing India in this post, it is due to the NY Times article I linked to. It is due to the reference Obama made specifically to India. Sure I could have used China, Bangladesh, Philippines or any number of other cheap labor countries. The article was specifically India’s response to Obama’s tax proposal.

  3. Amar says:

    Let me clear up some confusion that Lou have created in American society.

    1. Indian labor is cheap – correct – They work smartly (Not hard)
    2. Indian labor is not as smart as American – Dead wrong 100% – They are way way smarter than average American.
    3. Indian are like cheap labor from Mexico – Wrong 100% – Best of best from India come to USA. Labor class goes to Gulf.
    4. American think they are stupid – Wrong – Indians not only think they believe average Americans are lazy and stupid.
    5. They eat curry – 100% Correct
    6. They smell – 90% Correct 10% use deodorant.
    7. They are like average Mexican and Chinese – 100% wrong They are here because they want to be not like those from China and India who mostly are either asylum or forced to be here.
    8. They are threat to average American – 100% Wrong – Most friendly peaceful people on earth – except few bad apples.
    9. They have nothing back in India – 100% wrong. – They all are from very good higher middle class educated families. Just don’t want to live in India.. too dirty.. would not say though..
    10. When they are gone understand USA is declining rapidly..

  4. rjjrdq says:

    They eat curry? Who knew!

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