Walter Brasch: “Megabucks/U.S. closes its auxiliary operations, and then contracts with Mexican companies for a fifth of the cost in the U.S. They do the work, ship it back to the U.S., and Megabucks bills Blue Cross the full rate as if it was done locally.”
Robert Reich: The only reason the economy isn’t in a double-dip recession already is because of three temporary boosts: the federal stimulus (of which 75 percent has been spent), near-zero interest rates (which can’t continue much longer without igniting speculative bubbles), and replacements (consumers have had to replace worn-out cars and appliances, and businesses had to replace worn-down inventories). Oh, and, yes, all those Census workers (who will be out on their ears in a month or so).
Robert Reich: The Great Recession has accelerated a structural shift in the economy that had been slowly building for years. Companies have used the downturn to aggressively trim payrolls, making cuts they’ve been reluctant to make before. Outsourcing abroad has increased dramatically. Companies have discovered that new software and computer technologies have made many workers in Asia and Latin America almost as productive as Americans, and that the Internet allows far more work to be efficiently moved to another country without loss of control.
Michael Sigman: The decimation of the media industry, and particularly the newspaper business, has meant the elimination of health insurance benefits not only for the tens of thousands thrown out of work but also for the many writers, designers and others now forced to freelance. Media companies have to make cuts to stay in business, and some outsourcing is inevitable. But rewarding execs with big bonuses for, in effect, taking away workers’ health insurance is unconscionable.