More "In-Sourcing" Than Outsourcing

Rush ^

[apmp71]

nine million! -- Americans currently work for U.S. subsidiaries of foreign-owned companies.

[apmp71]

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More "In-sourcing" Than Outsourcing

October 6, 2004

Listen to Rush…
(…run the numbers on outsourcing, which most Americans don't know about)

BEGIN TRANSCRIPT

We've got some outsourcing statistics here for you from Elaine Chao, the Secretary of Labor: In the past year in America, employers have eliminated about 300,000 jobs in the U.S. in favor of cheaper labor elsewhere. Yet, about eight or nine million -- nine million! -- Americans currently work for U.S. subsidiaries of foreign-owned companies.

Now, people talk about outsourcing a lot. The anxiety belies the numbers, and you can look at it, well, any number of ways. We in-source more jobs from foreign countries by four to five times than we outsource. We in-source about 6-1/2 million jobs, outsource, you know, 300,000 this year, and we're  talking about a total of 140 million jobs overall of this country. It's a wash. In fact, it's a net gain, which is the point. If we're going to talk about outsourcing and we're going to be consistent about it, if we're going to stop outsourcing, we're going to build a wall around the country and no foreign companies can build factories here and employ American workers at the same time. You know, "outsourcing" has now come to be a bad word, and the Democrats are trying to associate outsourcing in this way. They actually want people to believe that the Bush administration wants Americans to lose their jobs so that American companies can profit more.

That is the insidious implication behind this outsourcing argument that the Democrats advance. And once again, throughout all of this, throughout all John Edwards' appearance last night and most of his comments, there is a decidedly America-is-to-blame kind of problem. There's a doom and gloom about his whole outlook as there is with John Kerry, and you always find America -- and particularly American corporations -- are to blame for everything with these people, and I just don't think this is the time people to want hear that.

END TRANSCRIPT

Read the Article...

(AP: Outsourcing anxiety belies facts, Chao says)

 

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[JoeA]

This article, like so many others like it, misses the point entirely. The issue is not how many foreign companies choose to build plants here to sell products to Americans. That has happened for years, sometimes as a result of tarrifs or pressure imposed by the govt., as in the case of the auto industry and sometimes because the economics made sense for other reasons. IN those cases, foreign companies were adding capacity.

The issue of outsourcing jobs concerns American workers losing their jobs, being replaced by a foreign worker doing exactly the same job. That is a loss of an American job, and does not directly compare to companies from other countries adding capacity by building plants in America. Mercedes' construction of ML320 (or is it BMW's X5) in Alabama did not cost German workers their jobs. Dell's relocation of its call center from TX to India cost US jobs.

[MTOrlando]

You hit the nail right on the head.

US companies are moving jobs to Bangalore so that the products created can be re-imported to the US.

Jobs created by foreign companies here in the States are for the purpose of creating goods and services to be sold here in the states, not to be exported back to whatever country the company is from.

The two are not equivalent.