Posted on 06/09/2007 10:21:50 AM PDT by servantboy777
U.S. data show that moving jobs overseas hasn't hurt the economy. Here's why those stats are wrong Whenever critics of globalization complain about the loss of American jobs to low-cost countries such as China and India, supporters point to the powerful performance of the U.S. economy. And with good reason. Despite the latest slow quarter, official statistics show that America's economic output has grown at a solid 3.3% annual rate since 2003, a period when imports from low-cost countries have soared. Similarly, domestic manufacturing output has expanded at a decent pace. On the face of it, off shoring doesn't seem to be having much of an effect at all. But new evidence suggests that shifting production overseas has inflicted worse damage on the U.S. economy than the numbers show. Business Week has learned of a gaping flaw in the way statistics treat off shoring, with serious economic and political implications. Top government statisticians now acknowledge that the problem exists, and say it could prove to be significant. The short explanation is that the growth of domestic manufacturing has been substantially overstated in recent years. That means productivity gains and overall economic growth have been overstated as well. And that raises questions about U.S. competitiveness and "helps explain why wage growth for most American workers has been weak," says Susan N. Houseman, an economist at the W.E. Upjohn Institute for Employment Research who identifies the distorting effects of off shoring in a soon-to-be-published paper.
(Excerpt) Read more at businessweek.com ...
Data published by the government seem to be agenda driven with a twist of lime rather than factual these days.
It is not the govt’s job to tell businesses where they can or cannot do business.
That's exactly right. The cost of not offshoring, for those who care, is human freedom. Amazing that everyone's solution for providing Utopia, whether they're approaching it from the left or from the right, is the police power of the state.
Gee fellas, I don’t remember saying anything of the sort.
I merely suggested that the numbers published by the government doesn’t always tell the whole story.
“Amazing that everyone’s solution for providing Utopia, whether they’re approaching it from the left or from the right, is the police power of the state.”
Then there is no “right”
Only varying degrees of “left”
Not sure American workers are competing on a level playing field due to the above mentioned.
“Data published by the government seem to be agenda driven with a twist of lime rather than factual these days.”
Oh, how can you say that? Toddster’s got a graph...wait, I’ll bet he’ll show it to you himself.
yeah, I think I’ve seen that same ol graph like 300 times.
Right! Right! Right!
“It is not the govt’s job to tell businesses where they can or cannot do business.”
It’s our job.
I needed something recently, not insignificant, China made item immediately available, I waited to get US made, and at twice the price.
That is the only way that we can make a change.
Sure. If enough of you do that maybe the companies will notice.
No less a personage than William F. Buckley floated a proposal for national "voluntary" (compulsory) community service.
Level it, if that's truly the case. But you level it at the point of a gun wielded by the state. If that's where you're coming from, more power to you; at least you're being honest.
Some facts have to be acknowledged in light of offshoring
1. The US unemployment rate is much higher than the published rate; the published rate only counts those that are still technically in the job market, not those who stopped working more than six months ago.
2. Manufacturing jobs are declining worldwide. It is almost impossible for the US NOT to lose manufacturing jobs.
3. Excessive US regulation has decimated the US manufacturing base. We are losing far more manufacturing jobs than we would be in a truly free economy.
4. Any attempt to stem the flow by placing tariffs or regulations on producers will simply cost more jobs. The only way to end the problem is to deregulate the US economy; ending the corporate income tax is one way. Ireland cut theirs in half a few years ago and saw their export industry boom.
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