Traitors

Well, perhaps "traitor" is too harsh a word, but "unpatriotic" is certainly a contender.

I refer to the search by major American corporations to "offshore" jobs, while the unemployment rate continues to rise exponentially. It's around 6% nationally, and in one area is over 10%.

If American companies need workers, why can't they hire unemployed Americans right here in the US? Cost is one reason; Americans have that pesky minimum wage to deal with. It's a necessary evil, to be sure, but unemployed and under-employed Americans cost everyone far more.

What American companies fail to realize is that if they can jump-start the economy by hiring Americans, the will sell more of their goods. Their profits will increase, far offsetting the additional cost of hiring local labor. Remember, our economy is all consumer-based. Nothing has the power of many people buying things.

This is where the government needs to step in. Congress is quick with the buck to hand to private corporations they deem "in need," but not so much for the people. Keeping Americans employed is in everyone's interest because it both increases the flow of money, and increases tax revenue. It would certainly kick the economy in the arse, maybe fixing all our problems. But how to do it?

Taxes. Congress has a lot of leverage over corporations by using the Tax Tool. The most obvious way is to tax companies who hire employees in other countries to conduct their business. Apply a tax for every worker hired outside of the US. The other way is to give a tax incentive - say a credit for every American worker hired. Or do both. The key is to make it worth the while of the companies to hire Americans.

We need a stimulus, but Congress has it wrong; doling out money is not the right way. Getting people working is the right way, and this is a way to do it.


Gartner lists top 30 offshoring hot spots | Business Tech - CNET News:

"While India was the 'undisputed leader,' followed by China and other BRIC countries Russia and Brazil, research firm Gartner's list this year of the top 30 offshoring destinations showed Mexico, Poland, and Vietnam pushing their way up to take them on.

Ian Marriott, research vice president at Gartner, said these countries would be seeking to take advantage of the credit crisis to capitalize on organizations' drive to save costs."