1. The Impact of Offshore Outsourcing on Developed Countries Jens Christiansen and Jim Burke February 20, 2006 CS/Econ/IR/Politics 125: Global Challenges

2. 10,000 8,000 7,000 92 9,000 6,000 9495939698970099020104030506 Quarterly data Job gainsJob losses Thousands Source: BLS Job Losses and Gains Since 1992

4. Setting the stage for corporate offshoring, 1970 – 2006: the creation of the ‘disposable’ American worker

5. US Economic Growth, 1949 – 2005 3-year average, % Rate of growth, %

6. US Unemployment Rate, 1949 - 2005

7. Setting the stage for corporate offshoring, 1970 – 2006 Lowering the barrier to layoffs as a corporate strategy  Declining economic growth and rising unemployment rates  Deregulation of industries  Declining union bargaining power  Growing influence of financial markets and financiers over corporate management  A falling minimum wage and the rise of a low wage, low value workforce Large-scale and ongoing layoffs have become an acceptable business practice for corporations – an ‘unfortunate necessity’

8. ‘The Doubling of the Global Workforce’ – Richard Freeman 1980 2000 2,930 million 960 million

9. Full page anti-union ads in The New York Times and The Washington Post from last Monday, February 13th

10. IMPORTS & EXPORTS AS PERCENT OF GDP US GDP 2005:$ 12.770 trill. EXPORTS:$.928 trill. (7.3%) IMPORTS:$ 1.727 trill. (13.5%)  GERMAN GDP 2005:$ 2.830 trill. EXPORTS:$ 1.016 trill. (36%) IMPORTS:$.801 trill. (28%)

11. Corporate and Personal Income Tax, United States Percent of GDP Corporate Income TaxPersonal Income Tax 1970 2000Change19702000Change 3.22.1-1.18.910.31.4 Source: Budget of the United States, Historical Tables, 2006

12. Mean US Family Income, 1970 – 2003 2003 dollars Bottom 20 th Top 20 th Top 5th 1970$12,570$81,856$125,692 2003$13,871$163,322$281,467 Percent change, 1970 - 2003 + 10 %+ 99 %+ 124 % Source: US Bureau of the Census

13. Hourly wage for male workers, 1970 – 2003 2003 dollars Bottom 20 th Top 10 th Top 5th 1970$9.93$27.80$33.51 2003$9.22$34.05$43.48 Percent change, 1970 - 2003 - 7 %+ 22 %+ 30 % Source: Economic Policy Institute from CPS

14. Employer provided pension insurance, 1979 – 2003 Percent of employees covered All Workers MenWomen High School College 197951 57415161 20034647444060 Percent change, 1979 - 2003 - 5 %- 10 %+ 3 %- 11 %- 1 % Source: Economic Policy Institute Employer provided health insurance coverage, 1979 – 2003 Percent of employees covered All Workers MenWomen High School College 19796975597080 20035660525369 Percent change, 1979 - 2003 - 13 %- 15 %+ 7 %- 17 %- 11 % Source: Economic Policy Institute

15. GDP per head at purchasing power parity, 2002 Household income adjusted for inequality GDP per head adjusted for leisure (GDP per hour worked) United States = 100 “Grossly Distorted Picture” from The Economist, Feb. 11, 2005