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Bush strikes back at critics of outsourcing
The Financial Times ^ | 9. March 2004 | Edward Alden

Posted on 03/10/2004 4:43:33 AM PST by 1rudeboy

President George W. Bush hit back at Democratic critics of his administration's job-creation efforts on Tuesday, branding them as "economic isolationists" who would raise new trade barriers and damage the US economy.

The comments came as part of what appeared to be a co-ordinated administration effort to respond to growing political pressures over the slow pace of US job growth, which has helped push Mr Bush's likely Democratic opponent, John Kerry, ahead of the president in several recent polls.

In a speech in Virginia, Mr Bush said: "There are economic isolationists in our country who believe we should separate ourselves from the rest of the world by raising up barriers and closing off markets. They're wrong. If we are to continue growing this economy and creating new jobs, America must remain confident and strong about our ability to trade in the world."

Robert Zoellick, the US trade representative, similarly warned Congress on Tuesday that "given the fact we're now in a stage of an economic recovery, the absolutely worst thing we could do would be to turn to economic isolationism".

Mr Zoellick told the Senate finance committee that increasing US exports to countries such as China and India, encouraging foreign investment in the US, and helping workers adjust to the loss of some jobs abroad were better responses than "bureaucratic interventions that will increase prices to our people".

Mr Bush's comments came less than a week after the Senate passed legislation aimed at preventing US government contracts from being carried out by workers in developing countries.

The administration has been uncertain over how to respond to the continued slow pace of job creation. Mr Bush has sought to distance himself from recent remarks by a senior economic adviser, Gregory Mankiw, that outsourcing of jobs is just a part of trade and therefore good for the US economy. But the administration now appears set to mount a more robust defence of companies that move US jobs abroad.

"US companies with foreign affiliates now account for about 58 per cent of our exports," said Mr Zoellick. "So the companies that do business overseas are also exporting overseas."

"I think the challenge is: How do you help people in a way that doesn't hurt or kill other jobs?" he said, pointing out that the US currently runs a $60bn annual trade surplus in the service sector, which has seen a growing number of jobs moved to lower-wage countries.



TOPICS: Business/Economy; Foreign Affairs; Front Page News; Government; News/Current Events
KEYWORDS: bush43; busk; immigrantlist; mobythread; offshoring; outsourcing; trade
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To: Semper Paratus
We at Free Republic can't even agree on this, how do you sell this outsourcing to the average Joe? How to lose an election without even trying!
181 posted on 03/10/2004 7:13:48 AM PST by international american
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To: SolutionsOnly
I just said that I don't see what is going to take up the slack.

And? It doesn't matter if you can see it or not. It is definitely going to happen. The alternative is all progress stops as of today. I know you don't believe that.

If progress continues- which it surely will- there will be a 'next thing' and there will be many more 'buggy whip factories' going out of business. It's just the way it is.

182 posted on 03/10/2004 7:14:51 AM PST by Prodigal Son (Liberal ideas are deadlier than second hand smoke.)
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To: international american
You just hit the nail on the head.
183 posted on 03/10/2004 7:16:34 AM PST by TXBSAFH (KILL-9 needs no justification.)
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To: Raleigh's Golden Mountaineer
It seems to me that more people in Wisconsin would have jobs (and therefore need less food stamps) if the state of Wisconsin hired some of her citizens to answer the telephones

Or they may raise the taxes to pay for a more expensive American counterpart.

I am surmising that the company doing the state work won the contract with the lowest bid, which is mandated in most state laws.

184 posted on 03/10/2004 7:17:56 AM PST by Dane
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To: e_castillo
Thats an understatement. I'm still wondering (wishing) if the article is for real.

Regardless of whether it's for real or not, the issue is a helluva lot bigger than some would like to think it is.

185 posted on 03/10/2004 7:18:18 AM PST by af_vet_rr
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To: lentulusgracchus
You'll generally see a devolution in an economy when a government tries to tinker with the will of that economy's participants. It has never happened otherwise.
186 posted on 03/10/2004 7:18:55 AM PST by waverna (I shall do neither. I have killed my captain...and my friend.)
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To: InterceptPoint
Don't forget those 5 million or so folks who work for Toyota, BMW, Seimans, Thomson CSF et al that are the benefactors of outsourcing from other countries

How many Toyota employee's were laid off in Japan when the American factories were built?...My guess none.

There's a huge difference between business expansion and job replacement.

187 posted on 03/10/2004 7:20:07 AM PST by lewislynn (The successful globalist employee will be the best educated, working for the lowest possible wage.)
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To: lentulusgracchus
Just how old are you?

Almost 40.

Wait'll you get sick. Real sick. Sick as in, can't work, can't hardly get up.

Yep and when it happens, that's problem isn't it?

When your wife.......oh, wait, you sound like you don't have time for foolishness like that, either.

No need to get personal. What is it you mean to say about my wife?

That'll be your "safety net".

I don't want a safety net. I prefer being free. People that want a government safety net are Marxists. Simple as that.

188 posted on 03/10/2004 7:20:21 AM PST by Prodigal Son (Liberal ideas are deadlier than second hand smoke.)
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To: SolutionsOnly
So then I'm wrong to be concerned that I'm not seeing the job creation we need to strenghten our economy and squelch the socialist agruments of our home grown leftists?

How's this for an answer: yes and no.

If our economy was doing poorly, certainly it would be appropriate to be concerned. But it's not doing poorly, contrary to the arguments of our "home grown leftists".

But most importantly, you personally should only worry about one job: yours. You see, the media loves to trump up heartbreak stories in election years if they oppose the incumbent. By doing so, they fan the flames of fear in regular people who think they're supposed to show sufficient concern. But it's all a bunch of hooey.

Reagan knew this when he asked "are you better off..."; the media was having a stroke over the "homeless problem", but level-headed Americans understood that they were doing just fine. So take a personal inventory; if Bush has been bad for you (and I think you'll need to consider the war on terror in this assessment), then by all means oppose him. Just be sure the alternative is what you're looking for.

189 posted on 03/10/2004 7:20:32 AM PST by Mr. Bird
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To: 1rudeboy
Mr Zoellick told the Senate finance committee that increasing US exports to countries such as China and India

If we have been increasing US exports, why has the trade deficit hit a record at 43.1 billion?

190 posted on 03/10/2004 7:23:46 AM PST by cpprfld (Who said accountants are boring?)
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To: Mr. Bird
If I knew what the next new thing was, I'd be inventing it or investing in it. Right now, someone else is (darn it). But one thing is certain: if we decide to tread water and keep all the jobs we currently do, then some other country will develop the next new thing.

You are right! So many people are sitting around asking the question rather than looking for opportunities. I say look around, identify a need, then figure out a way to make money filling that need. Be creative! Innovate! Ask not what your country can do for you but what you can do for yourself! Ok, I got carried away...but still.

191 posted on 03/10/2004 7:24:12 AM PST by hobson
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To: Dane
Dane,

Could you please answer me a few questions. Why do you think that his issue will not be big in this election. I work in IT and I do not know of a single person in this field that the issue ouf outsourcing is not in the forefront of their minds. I have seen a family menbers job outsourced to India and have watched them have the greatest of difficulty in finding a new job. Why do you expect the American voter to forget this when he goes into the voting booth? People tend to for the most part vote their pocketbooks. We can not afford a rat in the whitehouse now. But this issue is one they can use to win.
192 posted on 03/10/2004 7:25:17 AM PST by TXBSAFH (KILL-9 needs no justification.)
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To: international american
We at Free Republic can't even agree on this, how do you sell this outsourcing to the average Joe?

How to sell it? It's not the government's concern. That's the first point. The government is not in the jobs business. It's not the government's concern where I spend my money. Corporations don't belong to the government nor do they operate at the government's pleasure.

The only thing the government can do is to create a favorable environment for business to take place and for the economy to flourish. So far, with corporate taxes over 30%, they are not doing so.

You want to keep more corporations here? Reduce corporate taxes to almost nothing. Even at ten percent, just think about that. A corporation suddenly able to keep more than 20% more of its profit? Man, that would effect the economy in an amazing way.

The government just needs to reduce regulations on business, cut business taxes as much as possible and get the hell out of the way. That's what a government who was concerned about its citizens would do.

193 posted on 03/10/2004 7:25:20 AM PST by Prodigal Son (Liberal ideas are deadlier than second hand smoke.)
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To: Mr. Bird
Pay higher taxes so more people can work for the state, or pay lower taxes and fewer people work for the state.

Oh, so they lowered everyone's taxes when they "outsourced" to foreigners?...I didn't know that.

194 posted on 03/10/2004 7:27:33 AM PST by lewislynn (The successful globalist employee will be the best educated, working for the lowest possible wage.)
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To: 1rudeboy
>Mr Bush has sought to distance himself from recent remarks by >a senior economic adviser, Gregory Mankiw, that outsourcing >of jobs is just a part of trade and therefore good for the US >economy. But the administration now appears set to mount a >more robust defence of companies that move US jobs- >abroad. "Poor George...he was born with a silver foot in his mouth." Mr. President, that's the *wrong* answer. And it's going to cost you the election in November.
195 posted on 03/10/2004 7:28:30 AM PST by applemac_g4
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To: bvw
You may recollect the William Jennings Byrant "No Cross of Gold" motto. He was a demogogue, a man who wrecked much long term havoc on our nation, yet his call then had some honorable ........he might have produced a finer body of work without the havoc he left to us long term.

May I demur, in honor of my grandfather, who thought Bryan a great man?

Bryan's call for the silver standard was motivated not only by the plenitude of silver from the great Nevada strikes (which is why we still see ads today for Carson City cartwheels that have sat in a mint vault or bank vault since the 19th century), but also by the long decline in farm-product prices which obtained from the end of the Civil War, roughly, until the onset of the Great War.

During this period, bankers who stipulated loans' principal in gold dollars received, by the workings of the market, a non-negotiated increment over and above the interest to which they were entitled by the terms of the loan, which increment represented appreciation of gold over the term of the loan. And since this appreciation was due in part to government policy, the farmers felt, not without justification, that they were being played by the bankers to their great detriment, with the government as a catspaw.

Hence Bryan's "Cross of Gold" speech, which my grandfather attended, and which he thought the greatest speech of his life, and indeed of the age.

196 posted on 03/10/2004 7:29:26 AM PST by lentulusgracchus (Et praeterea caeterum censeo, delenda est Carthago. -- M. Porcius Cato)
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To: SolutionsOnly
So then I'm wrong to be concerned that I'm not seeing the job creation

No, but I believe you're looking for the wrong solution. Corporations are not evil. They are GOOD with a capital G. Corporations are taxed at over 30%. But they don't pay those taxes. You do. The government needs to make the climate in America as favorable to corporations as possible- not unfavorable. Do away with those coporate taxes. Encourage businesses to make as much money as possible.

At the end of the day though, it's not the president's problem whether you have a job or not. Or at least it wouldn't be in a free country.

197 posted on 03/10/2004 7:29:47 AM PST by Prodigal Son (Liberal ideas are deadlier than second hand smoke.)
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To: lentulusgracchus
if they did that, they'd destroy the U.S. oil industry

I'm not retired.  In fact, part of my present job is oil work.   We're not afraid of a lower oil price at all.  We've seen what  computing power have done to the computer industry and the effect on telecoms by the  plummeting price data/voice transmission.

Lower prices as with trade deficits are neither good not bad.  What's important is the economy as a whole, with special regard to total employment and real earnings.   Those numbers have improved and people have become better educated and they give more to charity, and crime is down.

BTW, if you were buying gas and the station was selling gas at ten cents per gallon, would you refuse to buy it if you found out the gas had been refined by Nigerians?

198 posted on 03/10/2004 7:29:59 AM PST by expat_panama
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To: expat_panama
But none of the protection mob complains about outsourcing 'Lord of the Rings' because it's not outsourcing if you're sending the work to New Zealand, UK, or Scandinavian countries

Or if Mel Gibson filmed "The Passion of the Christ" in Italy.

I am not going to bash Mel. It was a powerful film, but if the protectionists were intellectually honest with their rhetoric they would be bashing Mel as a "Captain of industry" for filming his movie in Italy and using non-American workers.

199 posted on 03/10/2004 7:30:55 AM PST by Dane
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To: lewislynn
There's a huge difference between business expansion and job replacement.

That's simply not true. Expanding business creates new jobs that didn't exist before and old jobs that aren't needed disappear. Business expansion always eliminates some jobs while creating more new ones. Just think of all those people who worked in the IBM typewriter factory. All out of out work. No, but they have different and better jobs now.

200 posted on 03/10/2004 7:31:41 AM PST by InterceptPoint
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