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Someone somewhere else has YOUR job, but would you want it if you could have it?
BY LEX CORWIN
Staff Writer
The last time President Obama spoke to Steve Jobs, the President asked Mr. Jobs why iPhones could not be made in the United States. Mr. Jobs simply replied, Those jobs arent coming back. Contrary to popular belief, outsourcing of American manufacturing jobs is not bad overall for the US economy. Regardless of some of the problems it poses for the economy, outsourcing is a very natural part of globalization as businesses are increasingly relying on foreign corporations for their superior labor supply chain. When President Obama posed that question to Mr. Jobs in February of 2011, it was estimated that in the decade prior, 2.4 million US manufacturing jobs had been moved overseas. That is a lot of jobs, capable of lowering the unemployment percentage by almost 2 points, but one cannot accept this fact without being informed of the specifics. First, many of the jobs moved overseas to countries like China and India simply pay too little to sustain the American worker. The new manufacturing jobs in America, while fewer in existence and requiring more education, are significantly higher-paying then their alternatives in the past. As more jobs get replaced by machines, more supervisors, engineers and technicians are needed to supervise and maintain the new work force. These higher-paid workers sustain five other local jobs, in comparison with the traditional manufacturing job sustaining about one and a half jobs. Second, the economy adapts. A good example lies in the history of tomato farming. In the 1960s, scientists at the University of California at Davis created a machine that harvested tomatoes with one pass through the fields. By the 1970s, the percentage of workers hired for the tomato harvest in California fell by 90%. While one might have expected droves of unemployed agricultural laborers, the lost jobs were quickly reclaimed through new manufacturing jobs. Sound familiar? Third, the jobs created in the US between 1990 and 2008 were created in sectors of the economy with no global competition, such as law, medicine, teaching, contracting and the service industry. These industries added 27.3 million jobs while the sector that competes in global marketsmanufacturing added none. In addition, no other nation exports more intellectual property than the
US through Hollywood studios, marketing and advertising companies and design and architecture firms. Lastly, America does not possess a manufacturing workforce capable to compete with our Chinese and Indian peers. In this highly competitive world, America cannot fulfill the quotas set by the worlds largest technological companies such as Apple, Samsung and Hewlett Packard. For example, prior to the iPhone 4s release, Apple abruptly redesigned a minor aspect of the screen, leading to an assembly line overhaul requiring 8,000 workers to be awoken in the middle of the night for a 12-hour shift of replacing screens. This type of manufacturing flexibility, diligence and skill allows the Foxconn factory in Shenzhen, China to produce 10,000 iPhones a day. This amount may appear staggeringly large, but compared with the 300,000 workers estimated to live on the campus, the number is not so unbelievable. As Jennifer Rigoni, Apples worldwide supply demand manager, pointed out, What US plant can find 3,000 people overnight and convince them to live in dorms? Innovation is and always has been critical to American economic progress, not to our manufacturing sector. Instead of giving tax holidays to corporations to bring low-paying manufacturing jobs back home, the US government should be giving subsidies to the firms whose creations can dominate world markets and create higher-paying jobs back in America for all employees involved.
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