Posted on 08/17/2008 6:19:18 PM PDT by FocusNexus
BARACK OBAMA says that he would "end tax breaks for corporations that ship jobs overseas" and blasts John McCain for refusing to condemn such loopholes. But the offshoring issue is more complicated than Mr. Obama's rhetoric suggests. Indeed, while there's no doubt that some individuals and communities are hurt by corporate decisions to shift manufacturing or other operations overseas, overall job creation may well benefit. Economists Mihir Desai, Fritz Foley and James Hines looked at U.S. manufacturers that expanded foreign operations between 1982 and 2004 and found that they tended to grow domestically as well, hiring more U.S. employees, paying them more and spending more on research. "While there may be considerable individual variation," they concluded, "the average experience of all U.S. manufacturing firms over the last two decades is inconsistent with the simple story that all foreign expansions come at the cost of reduced domestic activity."
Nonetheless, U.S. companies operating abroad already labor under a bigger tax burden than most foreign competitors. Mr. Obama's suggested fix would make it even harder for them to compete abroad -- ultimately hurting workers and others here.
(Excerpt) Read more at washingtonpost.com ...
People are catching on that Obama's change is ALL FOR THE WORST!
Wow, an anti-Obama editorial from the Washington Compost?
I’m shocked!
Obama’s chickens have come home to roost!
That would be terrible.
not “could” hurt, will hurt
btt
An article that I’m sure you’ll enjoy. ;)
The Economist this week was talking about the anti-inflationary effect of using labor in the developing world. Their point was that the lack of labor power is what saved/is saving the US from stagflation, since workers can’t demand higher wages like they could in the 70’s.
This is easy to see in the falling prices for nearly everything electronic, as well as anything else mfg’d in China.
What we need is for the government to live within it’s means.
If Mr. Obama wants to “fix” the problem that started the out-sourcing of American jobs, I am certain that it would be a much better fix in the long run. But I doubt that he sees the unions as a probelm, since they are 100% democrat-supporting. So, no problem will ever be ‘fixed’ until unions are dealt with and fair labor laws on the books are dealt with. There was atime when the unions were needed, but they have LONG sinced out-lived their usefullness and now are a threat to our American values.
The Post, while still reliably liberal, has always been more level-headed than the Slimes. They’re closer to old-style libs who actually cared more about their country than promoting socialism.
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