OK, this wouldn't be the first time a big U.S. company has fired workers at home to outsource their jobs to Asia. But this time the company is the highly profitable banking giant Goldman Sachs, and the 1,000 (or more) to-be-outsourced jobs are "high-paying, skilled positions in sales and investment banking," rather than, say, call center or assembly-line jobs. Goldman has reportedly begun sharing its Singapore outsourcing plans with Congress (even before alerting its shareholders) to avoid a messy political "fallout." Should we be outraged that Wall Street's "giant vampire squid" is outsourcing premium jobs?
This is offensive... and not surprising: It's insulting that Goldman is killing 1,000 high-skilled, high-paying U.S. jobs just three years after U.S. taxpayers gave it a $10 billion bailout, says Scott Keyes at ThinkProgress. But it's hardly surprising: Big corporations have shipped more than 2.4 million U.S. jobs overseas in the past decade. Still, Goldman's firing spree must be "particularly troubling" for those who think outsourcing just affects low-skilled jobs the U.S. doesn't need anymore.
"After taking a $10 billion bailout, Goldman Sachs... will outsource..."
Goldman's making a smart bet: This isn't normal outsourcing, since the new Singapore jobs will likely pay as much as those being cut in New York City, says David Indiviglio at The Atlantic. What the "screaming politicans and populists" fail to understand is that tough regulations and sluggish growth in the U.S. make booming places like Asia more profitable for banks. Indeed, others will surely follow Goldman's lead. That, of course, "isn't great news for the U.S."
"Goldman Sachs outsources banker jobs to Singapore?"
Actually, moving to Asia might hurt Goldman: If Goldman wants to flee to Asia, "more power to them," says Chris Ryan at AmericaBlog. But the move may not pan out as well as it hopes. With China's bubble about to burst, Goldman's Singapore branch will have a "very bumpy ride in the next few years." If only the investment bank had moved into the Middle East as it threatened to a few years ago. Just "imagine how much fun that could have been now that the region is in turmoil."
"Goldman Sachs shifting high paying jobs to Singapore"
Regardless, good riddance: I, for one, won't be mourning the eastward "trickle of high-income jobs from the world's most hated company," says Jim Newell at Gawker. The "dangerously bloated" U.S. banking sector needs to go on a diet and resume "lending to productive industry" anyway. Besides, "if the jobs of the elites start moving overseas, maybe people in power will begin to notice" how much outsourcing has hurt the middle class.
"Pity of pities: Goldman Sachs is sending jobs overseas"
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- Did the media get Ferguson wrong?
- 43 TV shows to watch in 2014
- What the Middle Ages can tell us about the GOP's big charity myth
- The U.S. is about to sell weapons to Vietnam. That's bad news for China.
- 10 things you need to know today: October 24, 2014
- America's anti-feminist mega-corporations' toxic disregard for women must stop
- How to be the most productive person in your office — and still get home by 5:30 p.m.
- Keira Knightley on Laggies, relationships, and surviving your 20s
- 3 horrific inaccuracies in Homeland's depiction of Islamabad
- How foreign aid screwed up Liberia's ability to fight Ebola
Subscribe to the Week