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Topic: India
Topic: Cost Containment
Topic: Business Process Automation
Automating processes within the organization to cut costs and add business value
Blog: Process Automation or Offshoring: Either Way, You Lose Jobs
Article: The Dawning of the IT Automation Era
White Paper: The Five Automation Imperatives; A Comprehensive Look at Business Service Automation
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Cost Containment, India, Offshoring, Reduction in Force
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We are way too productive. We either need to create more work, or we need to be less productive. Or we could do both. Sounds strange saying that, but those are the facts. Our nation has been hell-bent on sending more and more work offshore, leaving many people without jobs.
Currently, our trade laws encourage production to go offshore. Currency manipulation gives some of our trading partners a competitive advantage. Corporations actually get tax breaks for leaving money overseas. We need to be more PROTECTIONIST - yes I said it. And yes people are going to use fear tactics to scare you away from this. But protectionism creates jobs at home. China is very protectionist, and the Chinese are lucky to get a Sunday off. They have more work than they can handle.
So option 1 is for us to balance the trade deficit, resulting in foreign goods being more expensive and creating opportunities for domestic manufacturing.
Option 2 is for us to work less. Stop exempting employees from overtime pay. This will drive up the cost of labor, since it's expensive to pay overtime. Companies will hire more workers. Another idea is to pass laws requiring 4 weeks of vacation like the Europeans do. That will make us less productive, and stimulate tourism.
I think we should do both option 1 and option 2. Don't be overly protectionist, but strive for balanced trade. Impose tarriffs on countries that manipulate their currency to offset their advantage. Start paying overtime and have 20 days of paid vacation a year, minimum.
You can expect inflation, but that's going to happen anyways because of current government stimulus actions.
And since I'm already going to be called a protectionist, possibly socialist, here goes my shot at xenophobe. Obviously we have more people available to work than jobs. It makes no sense to import foreign workers given all this productivity we are experiencing. If you want to increase the demand for American workers, stop fiddling with the supply by augmenting the workforce with foreign workers (on the H-1b or L1 visa programs).
My work here is done.