July 24, 2012 2 min read 10 Comments
According to Cato's Michael Turner, Outsourcing Is Good For America.
Do you think the outsourcing of U.S. jobs could actually be good for Americans?
The number of U.S. jobs lost to low-wage countries has never been officially calculated — U.S. companies are not legally mandated to report such statistics. Boston-based global research and advisory firm Forrester predicts that more than 400,000 service jobs have been moved offshore since 2000 — and that number will rise to 3.3 million by 2015. More than 2 million manufacturing jobs have been outsourced abroad since 1983. Economists estimate that the number of jobs leaving the U.S. ranges between 12,000 to 20,000 per month.
Relocated U.S. jobs end up going to workers in developing nations like China and India, countries that pay their employees much less than their American counterparts.
Michael Tanner, a senior fellow at the libertarian think-tank Cato Institute, argues that low-skill jobs (such as product assembly and call centers) are not cost effective for U.S. companies anymore. In an interview with The Daily Ticker, Tanner says outsourcing has allowed U.S. companies to penetrate foreign markets, be more competitive and hire more U.S. workers at home.
"Countries outsource to establish a presence in a country in which they plan to do business," he says in the accompanying video. "If we're going to sell cars in China it makes sense to build a plant in China." Overseas profits are brought back to the U.S. "and then those new profits enable them to hire new and more skilled jobs in this country."
Read the full article here.
Tell us what you think in the comment section below. Is outsourcing good or bad for America?