Thursday, April 30, 2009

Immigration and Out sourcing "Profitable business?"

This is a direct correlation between out sourcing U.S. job over seas and hiring illegal immigrants, lower wages and higher profits for companies involved. The easiest solution to both problems is to remove the incentive or profit that companies can make by increasing fines and enforcemnet of existing laws to discourage violators.

At some point it become fashionable to ship U.S. jobs over seas. You got to point to the auto industry to see how shipping U.S. jobs over seas became fashionable. Once it became clear that in the global economy, over seas competitors were able to make a superior product at a lower cost, US jobs were in trouble. The question is, who fault is it that many over seas competitors can make a superior product at a lower cost (management, worker, unions, health care)? Management and Executive sold us on, the only way we compete in the global economy is to send our over seas. Ever since, it has been down hill and we are still trying to recover.

In a free market, there is great pressure to maximize profit at all cost. Many executive teams at companies have jumped over board in the regard. What can we do to help turn things around especially for the middle class. Many worker advocates would point to the Employee Free Choice Act currently in front of congress.

In my next post, I will look for solutions that will help U.S. companies stay competitive while ensuring more U.S. jobs are not out sourced and overwhelmed with immigration issues.

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