IBM's Amazing Profit Secret: Fire Americans

[girl gone mad]

Mish http://globaleconomicanalysis.blogspot.com/2010/04/mish-mailbag-ibm-abandons-us-workers.html">writes:

Here is an Email from "Voice in the Dark" about IBM and outsourcing. VID writes ...

Hello Mish

I read your blog every day. I do not comment much, but I think the MSM and most blogs are missing out on the greatest story not being told.

Large corporations are abandoning the US. I work for IBM. Here is a snapshot of IBM's US headcount:

2005 133,789
2006 127,000
2007 121,000
2008 115,000
2009 105,000
2010 98,000 estimate

These are all good paying jobs that can support a family and pay taxes.

Today, 75% of the total headcount is overseas. The overseas revenue is 65%. The company reported record profits last year. IBM decided to stop reporting their US headcount this year.

You know that many companies are moving their resources overseas. China is the new spot to build development centers. These incremental loses are adding up. But the saddest thing is that they are giving away the building blocks for innovation.

I just read a few weeks ago the Applied Material is planning to replace their US research center for a new one in China. That is another example of what is going on.

And no venture capitalist would attempt to build a solar panel factory from scratch in the US. The costs and the EPA will prevent that.

Please tell this story.

http://globaleconomicanalysis.blogspot.com/2010/04/mish-mailbag-ibm-abandons-us-workers.html">more...

[SocialistLez]

1. COLOR ME SHOCKED!!

:sarcasm: :sarcasm:

[jtuck004]

2. Applied Materials is not replacing their plant, but the new one they

are building is in China - they can staff it with engineers far cheaper than can be done here. It was discussed here a few weeks ago.

The facts about IBM appear accurate, but incorrect about building solar here. It could be done if the leaders in our country made the same decision that China has, which is to become THE leader in the technologies that we will need in the future. The leadership of the major parties in the U.S., on the other hand, put their time into funneling more money to health care companies and big banks, not really concerning themselves with the need for putting more than 20 million people back to work. And the members of those parties call each other names and slowly but surely start to fall off the cliff while yelling at each other for being clueless.

And in the midst of the noise people who have some wealth have realized that they don't need the people in this country when there are new customers to exploit coming on line elsewhere every day.

Man, I wish Google-Future could look into their crystal ball and publish the Zinn equivalent of a history book a thousand years from now about our time on this little globe.

thanks for the post