| When US corporations are forced to cut labor costs | | | | also very slow to pay the international companies that |
| during recessions they often lay off large numbers of | | | | hire to do things for them. In fact, some of these |
| people and then try to attempt to outsource as much | | | | international outsourced companies become cash flow |
| as possible. During this past recession the United | | | | banks. Let me explain. |
| States has lost a huge number of jobs, as factories | | | | If a US corporation has other companies in other |
| close, as retailers lay off people and as government | | | | countries doing things for them, then these companies |
| has to cut costs because tax base revenue is trickling | | | | not only have to pay for the labor, and the facilities to |
| in at such a slow rate. What is very interesting is that | | | | get those tasks done, but they also float the inventory |
| many of these corporations have decided to | | | | until paid. Then the US Corporation often waits 60, 90, |
| outsource their jobs internationally. | | | | I20, or even 180 days to pay. So you can see we are |
| In some regards this is good for other countries | | | | helping the global economy by providing jobs in other |
| because they were economically hit even worse than | | | | countries, but we are also using them as cash flow |
| the United States as the global GDP slowdown is well | | | | banks and exploiting them in many ways. |
| over 8% and that is huge. In fact, it's something over | | | | Sometimes we need to look at the bigger picture of |
| $5 trillion worldwide. And that's only for one year. | | | | what we are doing and why? It's not that I am against |
| Imagine living in a country that had a huge amount of | | | | making a profit, I am a capitalist make no mistake, but |
| poverty and people couldn't afford to eat even before | | | | there are repercussions to every action, and in the long |
| the recession. You can begin to see the problem and | | | | term we need to be thinking about these issues as |
| what a godsend it is for US corporations to outsource | | | | well. Sometimes quarterly profits and shareholders |
| internationally. | | | | equity get in the way of what's best for the company |
| Still, many of the US corporations that outsource are | | | | in the long-term. Please think on this. |