Robotic Nation Evidence

As discussed in the previous post, millions of white-collar jobs are going to be outsourced to India over the next 10 years. This process has a big effect on the tax base, because these are primarily upper-middle-class jobs that are leaving. According to this article: As jobs leave, taxes do also:

As U.S. companies shift jobs to low-paid workers in developing nations, a growing number of economists and politicians worry that offshore outsourcing could damage the nation's fiscal health by draining tax coffers.

Although proponents of offshoring dismiss such concerns as far-fetched or naive, some tax experts say the migration of lucrative technology jobs to India and China is shrinking U.S. employee tax contributions and could exacerbate state budget shortfalls. Others say offshoring could erode already strapped Social Security, Medicare, workers compensation and other payroll-deduction funds more quickly than anticipated.

The loss of these jobs would not be a concern if economists thought that these millions of jobs were going to be replaced with even better, higher-paying jobs in the U.S. Apparently, many economists do not feel that is going to happen.

Now imagine the outsourcing trend combining with the loss of manufacturing jobs to robots, as well as the loss of service sector jobs to robots, etc. See Robotic Nation for details.