Outsourcing. Not actually bad. Photo by by Paul Keller.
There’s a big debate in the states about Mitt Romney lying that he wasn’t involved with Bain Capital during a time when he was the sole stockholder, Chairman and CEO. And signing stuff and going for meetings. Which is a strange thing to lie about, but the reason is that he’s trying to disassociate from work that company did during that period, which including outsourcing. For any business in the world this is part of productive operations. And governments know this. But around election time, it suddenly becomes taboo. But outsourcing actually isn’t that bad. For anybody.
Three economists examined 58 U.S. manufacturing industries from 2000 to 2007, and found an economic upside to offshoring—not just for American companies, but for American workers themselves.
The study found that offshoring tends to increase productivity and reduce costs, which can prompt firms to expand domestic hiring enough to offset the jobs lost to workers overseas.
“Offshoring has no effect on native employment in the aggregate,” the authors said. “While o?shore workers compete directly with natives, their employment generates productivity gains that ‘increase the size of the pie,’ leading to an overall neutral impact on native employment.” (Washington Post)
It’s weird, rather than telling the hard truth about outsourcing not actually being a… bane to the US economy, he’s telling an impossible lie that someone could own and be the boss of a company and still not have any responsibility for what it does. Kinda a tough sell for a Presidential candidate.