Is the US economy capable of absorbing the vast number of IT workers that are scheduled to be outsourced in the next decade? It is understood that this race to the bottom...
to the LCM/S (least cost manufacturer/supplier), is at least being held back in sectors that are critical to the operations of the federal government.
India's technology industry has attacked proposed new US legislation that bans the outsourcing of federal work to low cost countries arguing it is a protectionist measure contrary to the spirit of free trade.
The move by the US Senate coincides with decisions by a number of foreign companies to halt further outsourcing to India because of a new domestic tax ruling that would enable the Indian government to tax part of their worldwide earnings.
The US bill, which was passed by the Senate of Friday but has still to be signed by President George W. Bush before it becomes law, is the most significant attempt to stop outsourcing, a fast-growing industry trend that has led to the loss of thousands of highly-paid technology jobs in the US and become a hot political issue in a US election year.
India attacks US on plan to ban outsourcing
IT, as a resource, could be compared to salt. Salt, specifically the chloride components, is necessary to the basic functioning of human metabolism.
Deficiency of chloride is rare. However, when it does occur, it results in a life threatening condition known as alkalosis, in which the blood becomes overly alkaline. A tedious balance between alkalinity and acidity is in constant flux, and must be vigilantly maintained throughout the entire body. Alkalosis may occur as a result of excessive loss of sodium, such as heavy sweating during endurance exercise, and in cases of prolonged vomiting and diarrhea.
If middle class sustaining jobs in IT leave the US in a major way, the "homeostasis" or internal balance will disrupted in a profound way that will eclipse the initial industrialization or the first major flight of heavy industry/manufacturing capital in the US.
Will not India begrudge the United States the few IT jobs that keep the economic "body", in good working order?
Moreso than in more temperate climates, salt was invaluable to the people of India, many of whom were agricultural laborers and required the mineral for metabolism in an environment of immense heat and humidity where sweating was profuse.
The US requires sufficient IT, like India in the 1920's and 30's needed salt. It is the engine that is keeping the consumer economy growing and vital.
Unless prices of Chinese goods are going to continue to fall along with US wages. US consumers are not going to be the world's "consumers of first choice".
I am sure the Indian government begrudgingly protects their salt industries. Why can't the US and US state governments do this without suffering withering attacks from Indian trade groups.