Ellen Goodman (1941 - )
Why are businesses outsourcing? Of course, the answer to such a question is the bottom dollar, but what is wrong with the American bottom dollar?
So here we go-“Three reasons that the U.S. cannot compete on a global scale.”
This is a complex subject in which there may be infinite amounts of points that lead to a conclusive reality on the subject…..but I don’t have an infinite mind nor time so we will limit it to three points that I am comfortable with.
#1- The American wage and salary
After building my own home and employing the likes of many “not-so legal citizens” in the construction process, I came to a very clear understanding regarding my salary. It became very clear that I truly do not earn what I receive. In fact, I am clearly overpaid for the amount of services I provide. As I watched these construction workers break their backs over relatively difficult problems, I realized that although I don’t break my back like they do I certainly don’t break my brain to that degree either.
Everyone is a victim of observing conditions on the other side of the employment fence. Such as, “That guy gets paid more than me for the same job”, or “she has way better benefits for less education” or “at least I don’t have to commute 3 hours every day” or “the cost of living is much lower here, so it is worth it.” Even though I feel I don’t earn what I already am receiving, I can’t help but tell myself, after these comparisons, that I deserve more than what I am currently getting. I bet you are the same too! Ask yourself these two questions. 1) When you think about the whole world and the world’s pay scale, do you think you deserve what you are getting paid? Y/N 2) When you compare yourself to others working in America, do you think you deserve more compensation, benefits, something? Y/N
If you are really honest with yourself, I think you will answer that you don’t deserve what you are currently paid but when you compare yourself to others you deserve more. Quite a conundrum.
Blessed is he who is content with his station in life, while the rest of us vie for that competitive edge that inevitably makes us bitter.
We believe that a secretary should get paid about X much and a teacher should get about Y much and a chemist should get paid about Z much. Yet everyone is pushing it all in an upward direction. The economics of supply and demand for workers has for some reason allowed everything to go in an upward cycle. More and more compensation for what?
I am going to let a dirty secret out of the bag. With regard to the American worker, we screwed ourselves. We acknowledged the fact that everywhere else in the world is paying less for the same job and we said, “screw ‘em, I am not changing anything, in fact I need a pay raise for even talking about this.” Some might say, that “the rest of the world is screwed up and we are the only ones on the right path.” News Flash: We have to play by the same rules as the rest of the world, there are NO special U.S. citizen loopholes or rules. When we chose to be integrated into a global economy we accepted the global economics rulebook. We have defied that rulebook for a long time. We actually doomed ourselves when we let people from all around the world learn our trade secrets and sciences in the name of “education” and go back home to implement exactly what we had figured out. But I digress.
You get paid more than you are worth. Ouch.
#2 – Plaintiffs Attorney’s (Geez, I hope my relatives never read this)
Here is a pretty interesting story for you. Moral of the story-Legal issues are only important when money is on the line. I have a pretty unique job in that I perform engineering tasks for the legal world. We once had a case in which it was blatantly clear that Jim Jimson burnt a business down on accident. In fact, all he did was replace a gas control valve on a water heater and within 6 hours the business burnt to the ground. Jim Jimson was not an employee of the business, he was simply paid a couple hundred bucks to fix the water heater, which he had probably done a hundred times. Jim Jimson had no license, no insurance, no business, and more importantly no money. We were put to the task of analyzing everything to find a deeper pocket than Jim Jimson’s. Maybe the valve malfunctioned, maybe an external heating source malfunctioned, maybe the propane refilling company did something wrong, maybe, what if, possibly, could have were all the scenarios that we were assigned to investigate. None of the scenarios had anything to do with the blatant fact that Jim Jimson was the sole responsible party for the fire. Nobody involved in the entire case even wanted to mention Jim Jimson or the potential that he was responsible because no money could ever be made from him. Simply put, Jim Jimson had nothing of value so nobody wanted to involve him in a lawsuit. To date no lawsuit ever happened. Jim Jimson got off scott-free. What I learned that day is that laws are implemented for the wellbeing of mankind(criminal), however, law is primarily practiced for the accrual and preservation of wealth(civil). If you want to avoid lawsuits, just ensure you have nothing of value. It takes money to make money. Meaning, every existing business has some money hidden somewhere. Every plaintiff’s attorney knows that, and they are working their hardest to ensure their cut of that pie. Under our current system of law, it is impossible to simply invent and produce a product. You now have to invent, test, re-test, test again, break it, beat it, manipulate it, abuse it, over-use it, pervert it, and then you can finally produce it for real world use. Let it be said that plaintiff’s attorneys are making the world safer than anyone else….but at what cost?
Here is another story to help you understand how the global world deals with the frivolous lawsuits of the U.S. Some guy buys a lamp from Walmart which starts a fire and burns down a house. The guy was improperly using the lamp, but that is not as important as the fact that the safety feature of the lamp, which prevents fires, happened to malfunction. The company that makes the lamp is based out of China. The plaintiff’s attorneys sue the crap out of anyone that ever had anything to do with this Chinese company. On the books, the Chinese company lost so much money because of this single lawsuit that they are forced to close the business. Ling Lang Lamp Manufacturers in Ching Chong, China is done forever. Future lawsuits against the company go nowhere, because the business no longer exists. A sad day for all other plaintiff’s attorneys that wanted to jump on the bandwagon to make money from this company. However, a new company called Shing Shang Lamp Manufacturing in Ching Chong, China is formed at the same mailing address, with the same employees, same managers, and same investors. Legally it is a completely different company with no connection to the previous company. The new company drops production of the faulty lamp. The original company may have been screwed on the initial lawsuit for the faulty lamp, but they can’t lose any more money than that. I would like to see General Electric or Craftsman try to pull that kind of maneuver. They can’t, so they get sued over and over again. At some point they just have increase prices to cover all their lawsuits to make profits.
Point is, you can sue anybody for anything if you think you can make a buck off it. The end result is that American companies are required to do an exhaustible amount of defense preparation for that inevitable lawsuit before product #1 is ever sold; on the other hand, China just makes a product, end of story. Economically we can’t compete with that. So which is better, lawsuit-proof products or cheap products? You tell me which is the worst scenario? 1) Your child is eating lead enriched paint chips which were very cheap, or 2) you can’t feed your child because your American company laid you off because they couldn’t compete on the global scale.
#3-Silly Government Regulations
Ok the following story is straight off the “Save the Whales” webpage. Of course I have their permission to quote their website! Pardon the length……
“The biggest effort of Save The Whales was without a doubt our battle to stop the Navy from performing “ship shock” tests in the Channel Islands Marine Sanctuary, a biologically sensitive area off the coast of Southern California. These waters are home to blue, sperm, fin and humpback whales, as well as dolphins, seals and sea lions. If the U.S. Navy had been allowed to go ahead with its plans – which were to test the hull integrity of its new cruisers by detonating 270 underwater explosives over a five-year period – it was estimated that hundreds of thousands of these beautiful animals, as well as other marine life, would have been killed outright. Others would have faced a slow lingering death from damage to their internal organs and hearing.The government held public hearings in Long Beach, and we got various animal and marine mammal groups to make statements or provide us with written statements that could be read at the hearing. Unfortunately, the government had made up its mind prior to the hearing, so it was no surprise that the Navy was given the go-ahead to perform their tests. One of the reasons they gave at the hearings was that it (a sanctuary) was a convenient location for them. We contacted Natural Resources Defense Council and they agreed to take on the case. They obtained a high-powered Los Angeles legal firm to assist. But before our case could be outlined, we had to obtain a PhD expert for every animal mentioned in the written statements. We also had to have a scientist who was an expert in the field of bioacoustics. We called every expert we knew. Many of them sympathized with our position, but the government funded them or their marine mammal research and they could not take a public position. After a week, we had run out of options in the United States. With less than two weeks until testing began, Hal Whitehead, PhD, a Canadian and the world’s foremost authority on sperm whales, agreed to testify. After he joined us, other experts came on board and miraculously we had what we needed.A five-day hearing was held in the U.S. District Court, Central District, in downtown Los Angeles. Richard B. Kendall and several of his associates from Shearman & Sterling, Los Angeles, headed our legal team. Joel Reynolds, an attorney with Natural Resources Defense Council, and several members of his team provided an amazing array of legal talent. We – and the animals – were so fortunate that this powerful team came together at this particular time. Judge Stephen V. Wilson presided and at the end of the five-day hearing, he found that:The Navy had failed in its obligation to protect marine mammals, that it hadn’t prepared a full environmental impact statement, and that it hadn’t investigated all reasonable alternative sites and properly mitigated the impact of detonations on marine life.One detonation would be allowed farther offshore with observers of our choice, including airplanes, and instruments would be used to detect any deep-diving marine mammals.”
Ok, here is an organization which, like all other non-profit organizations, probably gets their operational money from government grants to perform research on marine life or some other BS. Instead that money is used entirely on a “Save The Whales” beach house in New Guinea that only the Save the Whales President and head accountant know about and for preparing a lawsuit against the government. In this particular case, the Navy was the guilty party. How dare they potentially kill a precious whale, with feelings, emotions, and sexual desires! That makes them practically human, and you can’t kill humans! Who pays for the organization….we do, with tax dollars…..who paid for the lawsuit…..we do……….who pays for the ridiculous safety procedures that cost millions to ensure no whale is around during testing……..we do. In essence, we took some tax money, used that tax money to sue ourselves, then told ourselves to be safer, and then made ourselves pay for the additional safety measures. Now all explosions of this kind are required to spend millions of extra dollars to ensure the testing is done according to new regulations.
This is generally how all asinine government regulation enters the world. OSHA, NHTSA, EPA, CFR’s, NEC, IBC, UBC, these are all fancy acronyms for making our working world a *safer* :)….. yet more difficult place to accomplish anything. We are going to literally regulate ourselves out of work.
The regulations imposed upon everything we do are simply getting out of hand. I had the opportunity to peruse some IBC (International Building Code) books made for general contractors of construction projects. Every couple of years since like 1940 the IBC comes out with a new edition that everyone is supposed to build their house according to. The amount of words in the book has pretty much quadrupled in the last 15 years. The book is about 900% larger than it was when initially implemented. In 1940 we assumed someone knew how to drive a nail, now there is a standardized procedure for driving a nail which must be followed or OSHA will shut you down along with a $50,000 fine.
Pretty soon we will have global warming safety methane monitoring apparatus’ connected to our butts which will tell the government when we fart. It will be in an effort to curb our carbon fartprint. Ah regulation….
Summary
In spite of all my negativity, there is hope. See the whole world really likes our roads. They really like our houses. They really like the fact that every time you flip a light switch or flush a toilet the correct response occurs. Most places can’t make that claim. People want to be here because life is good, relatively fair, with good opportunities, and with freaking drinkable water and soft toilet paper. It is because of these three points I just discussed that we are in this comfortable state. Sure these points will screw us in the end, but that’s not the point. Even though these points brought us to this destination, we still need to ride this gravy train as long as possible and give as much money to the CIA as humanly possible to demean the quality of life elsewhere so that we can still cash in on people wanting to come here. Go get ‘em CIA!
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