Outsourcing Myths

IBDeditorials.com ^ | 6/19/07 | By INVESTOR'S BUSINESS DAILY

[mtnwmn]

Outsourcing Myths By INVESTOR'S BUSINESS DAILY | Posted Tuesday, June 19, 2007 4:20 PM PT

Journalism: America's companies are shutting down factories and offices, and shipping jobs wholesale overseas. That's how the media have portrayed it. In reality, outsourcing has created more, better-paying jobs here.

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Beyond The Bias: Sixth In A Series More on this series

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The media love victims. So when industries began moving jobs once done here to low-cost labor havens like India and China, pundits and reporters portrayed it as a devastating blow to America's traditional working class.

Tales of "Benedict Arnold" CEOs, as presidential candidate John Kerry called them, peppered the media. A populist groundswell — fed by news accounts of huge executive pay packages, scandals and soaring profits — found ample space in the nation's newspapers and on the airwaves. From Lou Dobbs to BusinessWeek, questions continue to be raised about U.S. companies sending jobs overseas.

Chances are, if you've been fed a steady diet of this, you think outsourcing is a disaster. Well, you've been seriously misinformed. Outsourcing is in fact a big contributor both to recent productivity growth and to rising incomes for average workers in the U.S.

[Paul Ross]

Every competition is actually a scheme, depending on from which side you are looking at it.

So you are "above" being an American, eh? This is pablum straight out of the liberal school of moral relevancy...equating the US as no better than ANY OTHER country. And the "Arsenal of Democracy" is just a convenient fiction for jingoistic rubes, eh?

Rather arrogant claim of "neutrality". Just like all the importers who have their actual paychecks paid by Americans. Not the foreigners who they ship from.

Yes, they are involved in a "side"...but just not the American side, eh?

If the French has a scheme I am sure even Boeing has one.

Oh, like they are equivalent?

And I am sure Boeing has similar schemes against its other competitors in collusion with other governments.

And you wouldn't see EADS/Airbus as the driving force causing that? Their corruption of the "competition" is in isolation, and has no adverse consequences?

[Paul Ross]

I already made the point regarding China being a security threat and i will not repeat myself.

Yawn. You made no significant point whatsoever.

Not one you are willing to back up with all necessary force, anyways. Which means shutting down all the "conduits" leaking the manufacturing to China. As witness the ITT outsourcing the classified Night Vision production, using the ruse of Singapore production. In any event, all of this tech was supposed to stay in the U.S. [classified as NOFORN], to China.

Enforce the Law.

[Paul Ross]

India is one country that has a trade surplus against China

Not because of lower wages however. It is because they practice protection...and China hasn't called foul WTO...because it does too...and they figure better to try and ensnare Indian business leaders in their web...than to knock over the entire can of worms just yet.

[Gengis Khan]

Wow I am sure that a fair comparison. /sarc

You take an older and costlier city in Malaysia and compare it with a sub provincial city somewhere in Guangdong to make your point.

[Gengis Khan]

“Why don’t you read it for yourself? You need to get real. You won’t believe it if I say it. Read it yourself.”

I have read it and it doesn’t say anything new that I dont know or haven’t read somewhere before already.

I want to know whats YOUR point. If you are simply repeating the fact that China is a threat, then I told you already I agree with you that outsourcing to China needs to be stopped.

[Paul Ross]

I have read it

Nope. You didn't. Those adobe documents would force you to page through, and learn something.

[Gengis Khan]

“So you are “above” being an American, eh? This is pablum straight out of the liberal school of moral relevancy...equating the US as no better than ANY OTHER country. And the “Arsenal of Democracy” is just a convenient fiction for jingoistic rubes, eh?”

I am neither American nor a liberal. I am a foreigner in US. You are just assuming too much about me or what I am trying to say. I was only arguing the economics of “outsourcing”. You mixed it up with politics, which is only agreeable as concerning China.

“Rather arrogant claim of “neutrality”. Just like all the importers who have their actual paychecks paid by Americans. Not the foreigners who they ship from.
Yes, they are involved in a “side”...but just not the American side, eh?”

Honestly I am not sure what you are trying to say. That rhetoric has little to do with the topic we are discussing.

“And you wouldn’t see EADS/Airbus as the driving force causing that? Their corruption of the “competition” is in isolation, and has no adverse consequences?”

I don't yet know of a company that only knows how to play fair. If you think only EADS/Airbus can be corrupt what would you say about an American company like Enron?

[Paul Ross]

...and it doesn’t say anything new that I dont know or haven’t read somewhere before already.

Oh, really?

Urgent action is recommended, as the industry is likely to continue moving in a deleterious direction, resulting in a significant exposure if not remedied. We urge greater than usual speed in implementing the recommendations of our study. The nation's security and economic well-being demands it.

--Dr. Wm Howard, Task Force Chmn.

[Paul Ross]

I am neither American

Obviously.

... nor a liberal.

Jury is, at best, still out on that. Everything you've said about "Schemes" belies your protestation.

I am a foreigner in US.

Brother, Alexis De Tocqueville you ain't.

[Gengis Khan]

“Not because of lower wages however. It is because they practice protection...and China hasn’t called foul WTO...because it does too...and they figure better to try and ensnare Indian business leaders in their web...than to knock over the entire can of worms just yet.”

Wrong. India- China trade is growing faster then India -US trade and is expected to hit $20 billion by next year. Thats next only to India-US trade. China is already India’s second largest trading partner. The protective barriers have already been removed.

[Paul Ross]

The protective barriers have already been removed.

Wrong. China Accuses India of Erecting Trade Barriers

[Gengis Khan]

“Everything you’ve said about “Schemes” belies your protestation.”

Actually I have said a lot more them that. BTW both conservatism and liberalism are American concepts. I have respect for both but subscribe to none.

[Paul Ross]

India- China trade is growing faster then India -US trade and is expected to hit $20 billion by next year.

So? China's SURPLUS alone against the U.S. is approaching $300 billion annually. It's ratio against the U.S. is now SIX-TO-ONE exports to imports.

And as I said, China is hoping to rope India into its orbit. It has not lowered the boom on India yet....but it will. There is no honor among thieves.

[Gengis Khan]

And you believe that chinese propaganda?

[Paul Ross]

And you believe that chinese propaganda?

Ho hum. What's sauce for the goose, and all that. You were the relativist. You didn't believe in any such thing as playing by the rules. You believe it's all a scheme.

SO for you to complain that something is propaganda...sounds like you have chosen a "side."

[Gengis Khan]

“And as I said, China is hoping to rope India into its orbit. It has not lowered the boom on India yet....but it will. There is no honor among thieves.”

It may...... not that India is too concerned about it. There is growing confidence among Indians. India has plenty of advantages against China and they actually welcome the increasing volume to trade with the Chinese.

[Gengis Khan]

“SO for you to complain that something is propaganda...sounds like you have chosen a “side.””

Yes a side opposite to China. I am from India. You surprised?

“You didn’t believe in any such thing as playing by the rules.”

Play by the rules? Exactly whose rules. Surely I dont approve of playing by someone else’s rules. And I don't mind a little bit of scheming at all. I am sure America is doing it. If not, then America is just too stupid.

[Paul Ross]

"And I don't mind a little bit of scheming at all. I am sure America is doing it. If not, then America is just too stupid."

Exhibit "A". They really don't get it that the rules are meant to be observed, not bent or broken at corporate convenience.

But Our trade "partners" don't see it that way, and hence really aren't "partners".

Ghengis, at least your an honest realist.

Even the Chicoms, have, after a fashion, been honest on a rare occasion... trying to tell the same thing to U.S. corporate and political elites. [ LIBERALS...no matter which party pin they have on their lapel] ...that want to believe that trade would prevent wars, and make everyone one big happy family...

"Tell your President, that we don't have such a relationship."
--Deng Xiaoping.