Date post: | 01-Jan-2016 |
Category: |
Documents |
Upload: | curtis-kennedy |
View: | 219 times |
Download: | 2 times |
The Impact of Offshore Outsourcing on Developed Countries
Jens Christiansen and Jim BurkeFebruary 20, 2006
CS/Econ/IR/Politics 125: Global Challenges
10,000
8,000
7,000
92
9,000
6,000
94 9593 96 9897 0099 0201 0403 05 06
Quarterly data
Job gains Job losses
Th
ou
sa
nd
s
Source: BLS
Job Losses and Gains Since 1992
Setting the stage for corporate offshoring, 1970 – 2006: the creation of the ‘disposable’ American worker
0
3
6
9
12
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
Un
emp
loym
ent,
%
1949 - 69
1970 - 2005
US Unemployment Rate, 1949 - 2005
Setting the stage for corporate offshoring, 1970 – 2006
Lowering the barrier to layoffs as a corporate strategy
Declining economic growth and rising unemployment rates
Deregulation of industries
Declining union bargaining power
Growing influence of financial markets and financiers over corporate management
A falling minimum wage and the rise of a low wage, low value workforce
Large-scale and ongoing layoffs have become an acceptable business practice for corporations – an ‘unfortunate necessity’
Full page anti-union ads in The New York Times and The Washington Post from last Monday, February 13th
IMPORTS & EXPORTSAS PERCENT OF GDP
• US GDP 2005: $ 12.770 trill. EXPORTS: $ .928 trill. (7.3%) IMPORTS: $ 1.727 trill. (13.5%)
GERMAN GDP 2005: $ 2.830 trill.
EXPORTS: $ 1.016 trill. (36%) IMPORTS: $ .801 trill. (28%)
Corporate and Personal Income Tax, United StatesPercent of GDP
Corporate Income Tax Personal Income Tax
1970 2000 Change 1970 2000 Change
3.2 2.1 -1.1 8.9 10.3 1.4
Source: Budget of the United States, Historical Tables, 2006
Mean US Family Income, 1970 – 20032003 dollars
Bottom 20th Top 20th Top 5th
1970 $12,570 $81,856 $125,692
2003 $13,871 $163,322 $281,467
Percent change, 1970 - 2003
+ 10 % + 99 % + 124 %
Source: US Bureau of the Census
Hourly wage for male workers, 1970 – 20032003 dollars
Bottom 20th Top 10th Top 5th
1970 $9.93 $27.80 $33.51
2003 $9.22 $34.05 $43.48
Percent change, 1970 - 2003
- 7 % + 22 % + 30 %
Source: Economic Policy Institute from CPS
Employer provided pension insurance, 1979 – 2003Percent of employees covered
All Workers
Men WomenHigh
SchoolCollege
1979 51 57 41 51 61
2003 46 47 44 40 60
Percent change, 1979 -
2003- 5 % - 10 % + 3 % - 11 % - 1 %
Source: Economic Policy Institute
Employer provided health insurance coverage, 1979 – 2003Percent of employees covered
All Workers
Men WomenHigh
SchoolCollege
1979 69 75 59 70 80
2003 56 60 52 53 69
Percent change, 1979 - 2003
- 13 % - 15 % + 7 % - 17 % - 11 %
Source: Economic Policy Institute