Economy is doing real well?

tyrolean_skier · Post by **tyrolean_skier** » May 24th, '06, 08:29

I don't think some of the folks that work for Washington Mutual would agree. Some of the jobs are going overseas to Manila.

SEATTLE - Washington Mutual Inc., the nation's largest savings and loan, has notified 1,400 workers in Washington and Florida that they will lose their jobs as part of the company's cost-saving strategy.

http://news.yahoo.com/s/ap/20060524/ap_ ... al_layoffs

Post by **Bubba** » May 24th, '06, 08:52

If you're questioning whether the economy is doing real well, the answer is yes, it is. Layoffs and change are part of a dynamic economy such as ours and those same layoffs and changes are what allows the economy overall to continue to do well.

Next question.

Steve · Post by **Steve** » May 24th, '06, 09:16

That's not a function of the economy, that's a function of WaMu increasing their profits.

Turzman · Post by **Turzman** » May 24th, '06, 09:42

Steve wrote:That's not a function of the economy, that's a function of WaMu increasing their profits.

Yup.
What's good for business isn't always what's good for low level employees.

Vinny Vincenzo · Post by **Vinny Vincenzo** » May 24th, '06, 09:50

Most of the cost savings go towards the increases in executive pay and perks. The entire cost savings of the Phillipines outsource to WAMU will go towards stock options for the top 10 executives. Corporate Executives don't care what families go hungry. Oursourcing is as big an American travesty as the Trail of Tears.

Steve · Post by **Steve** » May 24th, '06, 09:54

outsourcing may suck, but it's a reality of life.
If you're not prepared to deal with it, it's your own fault.

XtremeJibber2001 · Post by **XtremeJibber2001** » May 24th, '06, 09:56

Vinny Vincenzo wrote:Most of the cost savings go towards the increases in executive pay and perks. The entire cost savings of the Phillipines outsource to WAMU will go towards stock options for the top 10 executives. Corporate Executives don't care what families go hungry. Oursourcing is as big an American travesty as the Trail of Tears.

Not always. Take a look at Unisys, they're a good example. Sure it's only one, but not all companies are laying off employee's for high executive pay. Besides, if you lay off too many people, those perks for execs and stockholders will mean nothing when the company flops.

BigKahuna13 · Post by **BigKahuna13** » May 24th, '06, 10:10

XtremeJibber2001 wrote:
Vinny Vincenzo wrote:Most of the cost savings go towards the increases in executive pay and perks. The entire cost savings of the Phillipines outsource to WAMU will go towards stock options for the top 10 executives. Corporate Executives don't care what families go hungry. Oursourcing is as big an American travesty as the Trail of Tears.
Not always. Take a look at Unisys, they're a good example. Sure it's only one, but not all companies are laying off employee's for high executive pay. Besides, if you lay off too many people, those perks for execs and stockholders will mean nothing when the company flops.

I seriously doubt it all goes to high executive pay. Even the ridiculously extravagant salaries and bonuses the some executives make are still a drop in the cost bucket for most large companies.

Cityskier · Post by **Cityskier** » May 24th, '06, 10:18

Steve wrote:outsourcing may suck, but it's a reality of life.
If you're not prepared to deal with it, it's your own fault.

You say some really stupid sh*t.

RipeBanana · Post by **RipeBanana** » May 24th, '06, 10:20

The cost of labor in this country is prohibitively expensive compared to the developing world. As long as companies view their responsibility as delivering the highest profits to their investors, and labor remains cheap elsewhere, you'll have this. Labor is one of the few variables firms can control to lower costs and compete. Until the "one price" scenario is reached, and the developing world catches up, you're not going to see any change in this.

ski_adk · Post by **ski_adk** » May 24th, '06, 11:46

I was talking about this issue the other night with my girlfriend. I was arguing that globalization is bad and she's kinda in support of it. I lost the argument b/c she is right that outsourcing is making it cheaper to buy goods here in the US. Yet, that's a paradigm to me, b/c if the goods are cheaper to buy since they're being produced elsewhere, how are we coming up with the money to buy them if our jobs are leaving the country.

In other words, are we seeing quality, decent-paying jobs replacing the manufacturing jobs that are rapidly disappearing. What are they? What industry is filling the employment void left behind when companies move overseas? How are we able to buy those foreign-made goods when our jobs are high-tailing it out of the country?

My gut feeling is that globalization and outsourcing is bad, but I can't seem to come up with a decent reason as to why. Anyone know how to help me figure this one out?

Steve · Post by **Steve** » May 24th, '06, 11:57

Cityskier wrote:
Steve wrote:outsourcing may suck, but it's a reality of life.
If you're not prepared to deal with it, it's your own fault.
You say some really stupid sh*t.

What did I say there that wasn't true?

1. Outsourcing may suck (ok that's controversial)
2. It's a reality of life (definitely true)
3. If you're unprepared, it's your own fault (if 2 is true, then this is also true)

Vinny Vincenzo · Post by **Vinny Vincenzo** » May 24th, '06, 12:08

Steve wrote:
Cityskier wrote:
Steve wrote:outsourcing may suck, but it's a reality of life.
If you're not prepared to deal with it, it's your own fault.
You say some really stupid sh*t.
What did I say there that wasn't true?

1. Outsourcing may suck (ok that's controversial)
2. It's a reality of life (definitely true)
3. If you're unprepared, it's your own fault (if 2 is true, then this is also true)

And how are you "prepared" Steve? Rich Parents? Trust fund?

I think you lost your mind kid. Go Google yourself.

Steve · Post by **Steve** » May 24th, '06, 12:14

Vinny Vincenzo wrote:And how are you "prepared" Steve? Rich Parents? Trust fund?

Nope. I'm in technology. If I'm outsourced, I'll find another job. Quickly. I've got knowledge, the experience, and the connections to do it.
If that fails, I've saved enough of my own money to survive for quite a while.

So I'm prepared.

It's not exactly rocket science, vin.

Post by **Bubba** » May 24th, '06, 12:36

ski_adk wrote:I was talking about this issue the other night with my girlfriend. I was arguing that globalization is bad and she's kinda in support of it. I lost the argument b/c she is right that outsourcing is making it cheaper to buy goods here in the US. Yet, that's a paradigm to me, b/c if the goods are cheaper to buy since they're being produced elsewhere, how are we coming up with the money to buy them if our jobs are leaving the country.

In other words, are we seeing quality, decent-paying jobs replacing the manufacturing jobs that are rapidly disappearing. What are they? What industry is filling the employment void left behind when companies move overseas? How are we able to buy those foreign-made goods when our jobs are high-tailing it out of the country?

My gut feeling is that globalization and outsourcing is bad, but I can't seem to come up with a decent reason as to why. Anyone know how to help me figure this one out?

You're having trouble coming up with a decent reason why because your girlfriend is right.

To answer your question, however, "are we seeing quality, decent-paying jobs replacing the manufacturing jobs that are rapidly disappearing" the answer is yes. The nature of manufacturing jobs is changing and becoming more technologically driven. We no longer have as many jobs demanding physical labor done by high school graduates - we have manufacturing plants now that require fewer hands-on workers and more workers with the technical expertise to run the machines. This is good for the economy but also means that workers need to be more educated to succeed in the future.