"People do lose jobs as a result of globalization and it's painful for those who lose jobs," Mr. Bush said at meeting with young entrepreneurs at Hyderabad's Indian School of Business, one of the premier schools of its kind in India. Nonetheless, the president said, "globalization provides great opportunities."What American goods? At the rate outsourcing is going, there won't be any goods left to export. Just ask the people who will be working their last shift today at the Electrolux plant in Greenville, Michigan.
Mr. Bush, reiterating a theme of his trip, strongly defended the outsourcing of American jobs to India as the reality of a global economy, and said that the United States should instead focus on India as a vital new market for American goods. [Emphasis mine]
Sweden-based Electrolux announced in January 2004 that it was closing the 1.7 million-square-foot factory, whose 2,800 employees produced 1.6 million refrigerators annually under such brands as Frigidaire, Kenmore, White-Westinghouse, Gibson and Kelvinator.The Greenville workers aren't the only ones feeling the effects of globalization:
Electrolux has been transferring Greenville's work to a new refrigerator plant in Juarez, Mexico. The Juarez plant, which will pay assembly line workers about one-tenth of the salary of their Greenville counterparts, is to eventually have 3,000 employees. [Emphasis mine.]
Electrolux, the world's biggest white-goods maker, said yesterday it had reached a deal to end a strike at its AEG plant in Nuremberg, Germany, confirming the 2.3 billion crown ($438 million) closure of the plant.By the way, manufacturing wage costs in Germany are the world's second-highest. That seems to be the trend. Take good-paying jobs away from people with children, mortgages, etc., and give them to countries where people are willing to work for one-tenth of the wages. I'm all for raising the living standards of people across the world, but it needs to be done incrementally, equitably and fairly by people at all income levels. So far, most of the sacrifice seems to be coming at the expense of the lower and middle classes.
Workers have been on strike at the German plant since late January over Electrolux's plans to close the factory, cutting around 1750 jobs, and move production to Poland and Italy.
Electrolux has said it will relocate about half of its plants in Europe and North America to Asia, eastern Europe and Mexico.