History of Outsourcing in America
by Thomas Heffner on August 6, 2010 - 12:00am
The U.S. is increasing debt, decreasing savings and selling off our principal assets, our wealth producing companies abroad. This is not a sustainable or responsible long-term economic policy.

How did we come to this?

The history of outsourcing begins in 1980, a year when the United States was suffering through a period of stagflation. Stagflation exists when an economy is suffering slow economic growth, high inflation and high unemployment.

1. Foreign debt

Foreigners anxiously began buying up extremely safe and high yield U.S. government bonds. This created a big problem for American industries. Foreign companies could now hold their prices steady and be guaranteed a cost advantage.

Despite government attempts to assist troubled industries, especially the auto industry, the once strong industrial states such as Michigan and Pennsylvania suffered massive job losses. American car companies resorted to radical measures to ensure cost parity and profitability. In the mid-1980s, GM started closing factories in Flint, Michigan, and moved them to Mexico.

U.S. companies were forced into outsourcing as a means to return to profitability. Outsourcing developed into a major problem in the U.S.

2. Reckless "free trade" agreements

The outsourcing that started in the 80's boomed in the 90's, thanks to NAFTA. This "free trade" agreement with Mexico and Canada encourages our jobs to leave the country in pursuit of lower wage rates, non-existent environmental standards and trade without restrictions.

Aside from NAFTA opening up outsourcing to Mexico and Canada, The World Trade Organization in effect made it easier for American transnational companies to operate as truly international companies rather than local companies in multiple countries, a disaster for the American job market and our economy.

3. Globalization

This trend toward globalization became disastrously more prominent during the late 1990s. U.S. multinationals were already experienced with manufacturing overseas, so they took the next step and began setting up IT and research departments overseas as well.

Advancements in technology and communication allowed for transnational companies to fully globalize inexpensively. Most significantly, China and India began efforts to open up their economies to the world, which eventually led to China’s admittance in the WTO.

Today we are failing!

Today, we now have an environment of low domestic manufacturing, little innovation and high unemployment. Today there are fewer manufacturing employees than in 1955, and over the past 20 years 3.7 million manufacturing jobs have been lost.American workers can not and should not have to compete with third world wage rates.

Instead of hiring one engineer in the United States for $100,000, it is now possible to hire 10 engineers for the same amount of money in a developing country. With shareholders (many of whom, to their discredit, ironically represented large worker pension funds) demanding increased earnings, CEOs were willing to outsource to reduce costs.

The solution?

Drastic action is needed to restore our economic and financial independence and we must begin immediately to rebuild our industries. The first essential is that our government should ensure that it is once again profitable to produce most goods and services in American factories employing American workers.

We must establish policies that prevent other countries from doing to us what they would never let us do to them.

Tariffs were originally set up to help protect American industries by Alexander Hamilton, the first U.S. Secretary of the Treasury. We need tariffs again to help rebuild our nation's industries. Our industries, assets, resources, and companies need to be protected from foreign countries and corporations seeking to gain control of key industrial processes and technologies. This would include preventing the sale of strategic US domestic companies to foreigners and eliminating offshore outsourcing.

Click Here to Learn More About the North American Free Trade Agreement
Click Here to Learn More About the World Trade Organization
Click Here to See the List of 16,613 companies sold in the Last 30 Years
Federal Reserve

NAFTA Training for Outsourced Jobs Points to the Negative Impact of the Agreement

Has NAFTA training for outsourced jobs robbed Americans of jobs they desperately need?

As part of the NAFTA agreement, American companies can easily move their manufacturing and fulfillment facilities to Mexico or Canada, eliminating solid, high paying jobs in the United States while paying much lower wages in the other countries – usually Mexico.

This drain of jobs is one of the covered-up results of the NAFTA agreements that the criminal banking elite that developed, backed and pulled the strings to pass NAFTA does not want to publicize.

The truth is, NAFTA benefits no one other than the wealthy elite who are working in secret meetings and through back room deals to develop a new Anglo-American empire – a New World Order. Mexican small business owners have been crippled, the Mexican farmer and farm worker have been decimate, and the Mexican factory worker has been marginalized with substandard pay and limited choices. Others in the U.S. lose their jobs when their company is eliminated or reduced because tariff reductions have increased foreign imports in the sector. No one wins with NAFTA – at least, no one that it was supposed to have helped.

Then why did it pass? Why did all the U.S. presidents from Clinton to Obama support this spurious agreement that sucks good American jobs away, turns them in to subsistence jobs in Mexico that ensure poverty for the worker? Who benefits from the development of the treasonous North American Union that is being formed by NAFTA? It’s the banking cabal that control the puppet presidents in the United States. They benefit from the exploitation of workers in the U.S. and its neighbors, and they care nothing for the people who lose their work and their subsistence as a result. This means an uncertain future for all the U.S. workers who have lost their jobs because of NAFTA.

However, for the recipients of NAFTA training for outsourced jobs, things are supposed to be looking up. President Obama, when he was campaigning in 2008, called NAFTA a “mistake” that had cost American workers huge. He promised to increase efforts to retrain workers who lost their jobs to NAFTA, and he promised to take steps to change the agreement.

But that was only talking out of the side of the mouth that the common citizens hear. Out of the other side of his mouth, to the leaders of Mexico and Canada, he was sending reassuring messages that his talk was “only campaign rhetoric” and that “NAFTA isn’t going anywhere.” So what about his promises to those injured by the NAFTA agreement? The government has long provided federal assistance programs for these workers that lose their jobs as a result of the policies of the U.S. government regarding trade.

These programs are often under-utilized because of the extensive paperwork and filing requirements from both former employers and the employee who lost the job to foreign workers.

The company must first file a group application through the Department of Labor before the worker can file. Under the Obama administration, nothing is better for these workers. Funds are still extremely difficult to obtain. Since the central bankers and the globalist capitalists don’t care about the individual worker, there is no funding to help them. So NAFTA training for outsourced jobs remains minimal to non-exsistent.

Because of the extensive requirements for filing that these programs require, its estimated that only 10 percent of workers who lose their jobs because of NAFTA ever file for benefits.

Additionally, these programs are only available to the employees of companies that actually take their company elsewhere.

That means employees of the support businesses who lose their jobs as a result of the first company leaving are not eligible for benefits. Nonetheless, they are NAFTA causalities as well.


The NAFTA-TAA program (NAFTA Trade Adjustment Assistance program) provided help to those who lost their jobs due to NAFTA. This help included job search assistance, extended unemployment aid and training allowances.

Again, this help is only available to those who lose their jobs in direct result of the agreement or as a result of a plant leaving the country in search of cheaper labor elsewhere. There are so many exceptions that the law is basically useless to the actual workers.

Between 1994 and 2002, for example, 524,094 workers applied for assistance after losing their jobs as the result of the agreement. But many people didn’t even apply, since the requirements were so challenging, or because they didn't even know about the program. If the politicians are so concerned about retraining and helping American workers, why wasn’t this program better promoted? It’s because the politicians in American don’t care about the American workers at all. All they care about is retaining their power and being reelected.

What do they need to be reelected? These days, they need money, and lots of it. Who has the money they want? The elite bankers and criminally connected international business owners. So is it any surprise that the politicians are eager to please the power elite forming such secret societies as the Bilderberg organization, the Trilateral commission and the Council on Foreign Relations. The members of these organizations, the very richest and most powerful people in the world, want NAFTA, they want a North American Union that will merge into a world government, so that’s what they get.

Now the retraining "program" only exists as part of a merged, general assistance program that doesn’t even address the actual needs of NAFTA displaced workers. So very few workers were actually helped, and those who were helped found the assistance woefully inadequate.




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