Stop Offshoring
Friday, April 02, 2004
I read about two studies recently that purport offshoring will lead to more jobs in the U.S. They estimate the number of jobs lost and number of new jobs gained as a result of offshoring, showing that more jobs will be created than lost. I have to question whether the new jobs are equivalent to the jobs shipped overseas. Creating 120 low-paying jobs while losing 100 well-paying white collar jobs does not translate into an overall benefit for the U.S. Additionally, one of the studies was done by an Indian -- hardly the most objective source of pro-offshoring sentiment, in my opinion.
The studies also propose the same old solution to combating offshoring - education. As if lack of education is the reason why American jobs are being outsourced to other countries. I personally see educated Americans being replaced by less-educated Indians all the time.
Presidential candidate John Kerry proposed tax changes that would discourage offshoring. (See here and here.) Thus far, he is proving to be the far better choice for those who care about the threat of offshoring.
Here's a good quote from Kerry regarding his proposal.
"If a company is torn between creating jobs here or overseas, we now have a tax code that tells you to go overseas," he said. "That's crazy, and if I am president, it will end."
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