{"id":5345,"date":"2004-04-02T13:14:18","date_gmt":"2004-04-02T20:14:18","guid":{"rendered":"http:\/\/hill-kleerup.org\/blog\/wp\/2004\/04\/02\/outsourcing.html"},"modified":"2004-04-02T13:14:18","modified_gmt":"2004-04-02T20:14:18","slug":"outsourcing","status":"publish","type":"post","link":"https:\/\/hill-kleerup.org\/blog\/2004\/04\/02\/outsourcing.html","title":{"rendered":"Outsourcing"},"content":{"rendered":"

It’s a hugely sensitive topic, of course, the outsourcing, or offshoring, of US jobs, particuarlly now that more white collar positions are being thrown into the mix.<\/p>\n

But it may be not only that the problem has been overblown, but that actually it’s been stated backwards<\/a>.<\/p>\n

“Any way you slice it, the world is creating or transferring more jobs to the U.S. than we are doing to the rest of the world,” said Daniel T. Griswold, a trade specialist at the Cato Institute, a research organization in Washington.
\nIndia’s Essel Propack Ltd., Taiwan’s Teco Electric & Machinery Co. and Denmark’s Vestas Wind Systems A\/S all have built plants in the United States in the last year and a half.
\nOther non-U.S. companies announced plans to increase hiring in the United States last year including Japan’s Nissan Motor Co., with 3,350 jobs in Canton, Miss.; DaimlerChrysler AG of Germany, with 2,000 at a new Mercedes-Benz plant in Vance, Ala.; German appliance distributor BSH Bosch and Siemens Hausergate GmbH, with 1,300 in New Bern, N.C.; and Magna International Inc. of Canada, with as many as 800 in Bowling Green, Ky.
\nThe movement of U.S. jobs abroad “has been blown out of proportion” mainly because domestic companies in the United States have been slow to increase hiring, said Martin Baily, chairman of former President Bill Clinton’s Council of Economic Advisers. “There was lots of offshoring going on in the 1990s, but job growth was so strong in the U.S. that nobody really took much notice.”
\nWhile reliable figures aren’t available for the last two years, the Commerce Department estimated on March 18 that the number of Americans employed by U.S. affiliates of majority non-U.S. companies grew by 4.7 million from 1997 through 2001. In the same period, the number of non-Americans working at affiliates of majority-U.S. companies abroad rose by 2.8 million.<\/p>\n

If we don’t want to be encouraging through tax policy (assuming we are) the transfer of US jobs overseas, we also want to be sure we don’t set up barriers that prevent the importation of jobs to the US.<\/p>\n

Another article, here<\/a>, notes:<\/p>\n

The first mistake of many politicians, argues Matthew Slaughter, a professor at the Tuck School of Business at Dartmouth College, New Hampshire, is to assume that a job created overseas is one not created in the US. “An overseas worker is sometimes a substitute for a US worker but very often they are a complement for a US worker,” he says. “Expanding an overseas network frequently means you have to hire more workers in the US too.”
\nEven if much low-end production takes place outside the US, the management, logistics, research and development and international IT remains in the US. “As the international network expands, so does the the US network managing it,” Mr Slaughter says.<\/p>\n

Which was, after all, one of the arguments behind the Clinton-era NAFTA legislation. But that’s a difficult argument to make, in a period of economic uncertainty.<\/p>\n","protected":false},"excerpt":{"rendered":"

It’s a hugely sensitive topic, of course, the outsourcing, or offshoring, of US jobs, particuarlly now that more white collar positions are being thrown into the mix. But it may…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_analysis_target_kw":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[21],"tags":[],"class_list":["post-5345","post","type-post","status-publish","format-standard","hentry","category-job-jollies"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6580,"url":"https:\/\/hill-kleerup.org\/blog\/2004\/08\/16\/insourcing.html","url_meta":{"origin":5345,"position":0},"title":"Insourcing","author":"***Dave","date":"Mon 16-Aug-04 7:59pm","format":false,"excerpt":"Some good news on outsourcing: Judging by various outfits' plans, this trickle of reverse offshoring may well turn into a flood. In their attempts to pacify U.S. customers spooked by...","rel":"","context":"In "Big Business"","block_context":{"text":"Big Business","link":"https:\/\/hill-kleerup.org\/blog\/category\/big-business"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5771,"url":"https:\/\/hill-kleerup.org\/blog\/2004\/07\/20\/where_will_it_e.html","url_meta":{"origin":5345,"position":1},"title":"Where will it end?!","author":"***Dave","date":"Tue 20-Jul-04 2:31pm","format":false,"excerpt":"The standard retort (rightly or wrongly) to claims that the economy is improving, jobs are increasing, and outsourcing is actually good for US employment, is that the jobs that are...","rel":"","context":"In "Big Business"","block_context":{"text":"Big Business","link":"https:\/\/hill-kleerup.org\/blog\/category\/big-business"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":132384,"url":"https:\/\/hill-kleerup.org\/blog\/2016\/12\/19\/tweetizen-trump-2016-12-19-droning-on.html","url_meta":{"origin":5345,"position":2},"title":"Tweetizen Trump – 2016-12-19 "Droning On"","author":"***Dave","date":"Mon 19-Dec-16 8:32am","format":false,"excerpt":"A busyish weekend for the POETUS. What was he on about via Twitter?===\u25ba Well, we all did it, together! I hope the \"MOVEMENT\" fans will go to D.C. on Jan 20th for the swearing in. Let's set the all time record! \u00b9Even if the only folk there are a park\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":133028,"url":"https:\/\/hill-kleerup.org\/blog\/2017\/03\/13\/make-america-isolated-again.html","url_meta":{"origin":5345,"position":3},"title":"Make America Isolated Again!","author":"***Dave","date":"Mon 13-Mar-17 1:36pm","format":false,"excerpt":"While I'm sure there are lots of people eager to get the jobs Donald Trump has promised to return to America, the \"American First\" rhetoric, travel bans, and widespread stories of visitors to the US being detained, harassed by Customs, and sometimes sent back home, is already having an effect\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":135301,"url":"https:\/\/hill-kleerup.org\/blog\/2017\/11\/06\/diplomatic-ever-knowledgeable-president.html","url_meta":{"origin":5345,"position":4},"title":"The Diplomatic and Ever-So-Knowledgeable President","author":"***Dave","date":"Mon 6-Nov-17 10:30am","format":false,"excerpt":"You'd almost think Donald Trump hasn't read an article about Japanese car manufacture and US imports since, oh, 1976 or so. (Emphasis mine.) President Trump called on Japan to build more cars in the U.S. during his stop in the country as part of his first official tour of Asia\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/hill-kleerup.org\/blog\/wp\/wp-content\/uploads\/2017\/11\/trump-serious.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":133561,"url":"https:\/\/hill-kleerup.org\/blog\/2017\/05\/28\/those-cars-the-darned-germans-sell-us-are-largely-made-here-in-the-us.html","url_meta":{"origin":5345,"position":5},"title":"Those cars the darned Germans sell us … are largely made here in the US","author":"***Dave","date":"Sun 28-May-17 12:41pm","format":false,"excerpt":"See, here's how globalism works, Donald, particularly in the auto industry: cars get built in a lot of places, and sold in a lot of places, and those places don't necessarily have much to do with where the cars are actually sold. But because the US buys a lot of\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/posts\/5345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/comments?post=5345"}],"version-history":[{"count":0,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/posts\/5345\/revisions"}],"wp:attachment":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/media?parent=5345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/categories?post=5345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/tags?post=5345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}