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Do You Think Outsourcing Is Good For America?
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?
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?
10 Responses
gordana Malone
February 09, 2021
when it says Made in USA, I would like to know “which prison” because they’re getting a lot of the business, but hey, I give them credit, at least they know what a size Large means,not like the Chinese. Sile Large fits an 8 yr old child.
Joyce Omandam
February 09, 2021
I also highly recommend you to try this link: https://www.youtube.com/watch?v=bBJfyVMKMk0. It will help you explain everything
you want especially for the Why is Outsourcing Good for America..
Larry Stepp
February 09, 2021
Trade is good as long as it is fair and balanced. The problem is when governments, like China (or even the USA), try to manipulate trade or currency for an unfair advantage.
I still believe in free trade. The free movement of goods and services across states in the USA is a good thing and free movement of goods across international boundaries should also be a good thing.
Let the economy self-balance. If governments, and especially politicians, try to manipulate anything it eventually has unintended consequences. Free markets are always the most efficient determent of who should win and lose, not detached politicians or those seeking an advantage over others.
Kathy Spegal (@kathy511)
February 09, 2021
I don’t agree that outsourcing jobs to other countries is good for America. I have a small business, I will try to be brief but here is a good example. Well known handbag & accessory company VERA BRADLEY has been in business for many years(well over 26+ years) here in the USA…. UNTIL recently, approx. 5 yrs ago or so they outsourced the BULK of their manufacturing to China. This hurt many people and jobs in the USA because many manufacturers (including one here in Ohio) were faced with laying off their employees and closing their doors. Fortunately for us in Ohio, this wonderful manufacturer decided to take their skills and employees and branch out on their own and start their own business. I am proud to say that I carry their line in my store. On top of that I tell everyone I can about their story…. while Vera Bradley is still making money hand over fist (by the way, they didn’t lower their prices for the American consumer even thou they are saving money) now, to me that is GREED that encourages companies to outsource. What about all the jobs that they created here in the United States?? Where did all these hard working AMERICANS go after Vera Bradley took THEIR JOBS overseas? How can you say that this is good for America? I totally disagree!! I am a conservative. I don’t like how the government spends our hard earned money left and right and wants to penalize businesses for succeeding. There has to be a better solution to companies like Vera Bradley wanting to line their pockets with even more $$$… Hope this opens the eyes of some people that shop VB and other companies like this….
Check out AMERICAN MADE “STEPHANIE DAWN” they make high quality products and keep jobs here in the USA!!! Oh, and before I forget… if companies are allowed to just ship their manufacturing to other countries, in my opinion there should be the same guidelines and regulations held to ALL companies (when something is made here in the USA they have to pass many hard (and probably good) guidelines/regulations to insure safety to our consumers…. why is it that the products being brought over to the US are not held to the same standards?? Food for thought my friends.
Chuck Gladfelter
February 09, 2021
I should hope by now the general public are smart enough to not believe all this right wing bullshit (Cato and others) anymore, but I have my doubts.
Dan Hoots
February 09, 2021
My job went to Mexico, in the middle of a drug war. What do you think I think? The only positives are the bottom line of a company, the bonus of self centered CEO’s, and to some extent the stockholders. When will this country wake up?
Jim Gillelan
February 09, 2021
Two companies who do all there business here in the US offshore a lot of their technology. The companies, Allstate and Florida Blue says it makes them more competitive. I understand multinationals offshoring jobs, but when will Allstate and Florida Blue ever do business in India?
MS
February 09, 2021
I still don’t see how outsourcing is a good thing. All of that blab about how it can create higher paying and thus more desirable jobs here in the US. I think it’s bs. All of that money made goes into CEO’s pockets and does not trickle down to the average American. Our country needs all kinds of jobs and at all skill levels period. I think everyone needs a fair shot at making a living.
randy
February 09, 2021
No, it’s bullshit. Yes, it makes sense to build cars in China that you plan to sell in China, but if that makes sense, then why doesn’t it make sense to build cars that you plan to sell in America, in America?
It’s nonsense. Besides, market penetration doesn’t necessarily kwotow to the location of manufacture. The French want iPads as much as Americans do, regardless of the fact that the iPads made in China. The product creates its own demand in this case; you don’t need to make iPads in China if you want to sell them there, just like you don’t need to make them in France if you want to sell them there.
Michael Tanner should be ashamed of himself for suggesting this. The only reason outsourcing is “good” is because it’s momentarily good for owners. That’s it. That’s the sole reason. Be fucking honest.
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kiki5711
February 09, 2021
BS. it’s not good for america. and no new jobs are being created unless you count, growing weed, as it becomes legal state by state.