The political left are on the wrong side of outsourcing. Why? Because they ignore insourcing. To listen to a Democrat speak of outsourcing, it is always about how high paying jobs are going overseas and this is wrong. That, like the missing explosives ‘under our watch’ is simply not true. It’s spin.
If you imagine our economy as a superhighway, you can find these Democrats on the exit ramp, demagoging the economic function of outsourcing. All they see is jobs that ‘go overseas’. They refuse to see what’s going on at the on-ramps. So, as per their playbook, they make sure you only see what they’re losing and none of what they’re gaining.
This is a simple concept. Outsourcing is not an exclusive function of employers in America. Businesses do it where they can to cut costs, which means they can be more competitive and solvent to their investors (more increasingly you and I), and their customers in offering more bang for the buck. Fact is, countries around the world also ‘outsource’ where they feel they can benefit. And, not surprisingly, many of them outsource to the good ole U.S. of A. In the final analysis, more jobs are created as a result of ‘outsourcing’ than are lost. But the left, standing on the off-ramp is oblivious to this phenomenon. Studies show that over the past 15 years, foreign corporations have moved jobs to the United States at a faster rate than jobs have left. “Jobs insourced to the United States increased from 4.9 million in 1991 to 6.4 million in 2001.” There’s been an 82 percent increase in insourced jobs compared to a 23 percent increase in outsourced jobs.
Source Bruce Bartlett, a senior fellow at the Dallas-based National Center for Policy Analysis. In their ‘perfect’ world, the Democrat party would like to eliminate outsourcing to appease the unions. It’s purely a political calculation for them, not an economic one. They claim outsourcing will increase unemployment here in the U.S. If that was true, then how can they explain our current unemployment rate, which the U.S. Bureau of Labor Statistics put at 5.4 percent in September 2005, is one of the lowest in the world and in our history. (This article originally published in October 2005, it is 4.4 percent as of October 2006, and is now the lowest in history.) France’s unemployment rate is 9.4 percent, Germany’s 9.9 percent and Italy’s 8.6 percent. Our Canadian neighbor’s is 6.6 percent. Quoting Walter Williams here “The next time you hear a politician whining about our “awful” job climate, ask him which European country we should look to for guidance in job creation. The fact of business is that our country is the world’s leader not only in job creation but in terms of where the world wants to invest its money.” Outsourcing is not a dirty word. And the party stuck on the off-ramp does not have the answer. Only spin.