Stop outsourcing jobs: Obama
Washington, January 28
"To encourage ... businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the USA," he said in his first State of Union address.
"Now, the House has passed a jobs Bill that includes some of these steps. As the first order of business this year, I urge the Senate to do the same... People are out of work. They're hurting. They need our help. And I want a jobs Bill on my desk without delay," he said.
India, which has earned the name “world's back-office”, could suffer the most by this move.
According to Nasscom, the IT sector's revenue accounted for 5.8 per cent of India's gross domestic product in 2008-09, up from 1.2 per cent in 1997-98.
American companies primarily move jobs abroad to save costs, with no dent on services as countries like India boast of an English-educated workforce -- be it IT engineers or for jobs that had to be done over phone.
"But the truth is, these steps won't make up for the 7 million jobs that we've lost over the last two years," Obama said.
"The only way to move to fullemployment is to lay a new foundation for long-term economic growth, and finally address the problems that America's families have confronted for years,” Obama said. He also announced that the US would invest massively in skills and education of its people.
“Still, in this economy, a high school diploma no longer guarantees a good job. I urge the Senate to follow the House and pass a Bill that will revitalise our community colleges, which are a career pathway to the children of so many working families. To make college more affordable, this Bill will finally end the unwarranted taxpayer-subsidies that go to banks for student loans,” he said.
The US president also announced that he intends to double US exports in the next five years, sending an indirect message to China and other export-reliant economies that they were not the only ones aggressively seeking new markets.
“We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores,” Obama said.
“But realising those benefits also means enforcing those agreements so our trading partners play by the rules,” he said, adding that the US would continue to shape a Doha trade agreement that opened global markets.