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A recent study about out-sourcing computer jobs to other countries came to the following conclusions.
1) Offshore out-sourcing is expected to grow by 26% per year. It will go from $10 billion in '03 to $31 billion in '08.
2) Total savings to the US economy will go from $6.7 billion to $20.9 billion. It reduces costs to consumers, dampens inflation, lowers interest rates, and increases spending.
3) Many individual workers will loose their jobs do to offshore out-sourcing.
4) Net employment effect to the US economy, as been a net gain of 90,000 through 2003 and will grow to a net gain of 317,000 jobs in 2008.
The study finds that although some people will loose their jobs, other jobs in other industries will open up because of the cost savings. Offshore out-sourcing actually increases employment in the United States.
I can hear the cognitive dissonance already. Cognitive dissonance is what they call it when we a presented facts that dispute what we believe. When that happens our brain goes through a kind of convulsion while it tries to make sense of the situation.
In this case, I can hear you saying, "I don’t believe that. That doesn't make any sense. How can shipping jobs overseas result in an increase of employment in the US?"
I know this won't convince you right away. I only ask that you keep an open mind. Is it possible your belief about out-sourcing was formed from not having ALL the information? Could you be like the blind man touching an elephant? The blind man holds the elephant's trunk and exclaims, "It's a snake."
Posted by Ted at April 5, 2004 8:38 PM