The BLS data they quote refers to "job churn." BLS data tells us that today nearly a million people leave their jobs each week, and each week nearly a million people are hired (plus or minus). This is normal, the "musical chairs" game that goes on all the time - it has little if anything to do with the issue of off-shoring jobs.
# Heritage Myth #4: Free trade, free labor, and free capital harm the U.S. economy.
Fact: Economic freedom is necessary for economic growth, new jobs, and higher living standards.
I'm not sure what they're getting at with their "rah-rah" here. Maybe they're talking about laissez-faire off-shoring of manufacturing and just about anything else that can be moved?
If this is another "free trade" vs. protectionism argument, it's completely off point (yes, another red herring). Off-shoring jobs is not trade in any form.
Off-shoring jobs is labor arbitrage, pure and simple.
When they send jobs out of the country, companies are simply trying to get labor at the lowest possible cost. That's why jobs that left the U. S. to go to Mexico with NAFTA are now moving to China.
The benefits in the Heritage "fact" do exist, but they accrue to the countries that get the jobs, not to the U. S.
# Heritage Myth #5: A job outsourced is a job lost.
Fact: Outsourcing means efficiency.
This Heritage "fact," too, is not a rebuttal. Again, it's an example of poor logic, as both statements could be true (neither is true in all circumstances).
And if the outsourcing sends jobs overseas, efficiency is at the expense of American workers.
[SIDEBAR:] This seems like a good time to address an issue of terminology that is confusing the debate on jobs: "outsourcing" as contrasted to "off-shoring."
"Outsourcing" is a generic term that had different connotations in the past than it does today. In the past, a company might decide that they didn't want to do their bookkeeping, programming, customer support or clinical trials themselves and would hire an outside firm to do it for them. These jobs were "outsourced" to companies within the United States, often local, and helped the domestic economy grow.
However, having the work done in China, India, Indonesia or Ireland is not the same thing - it helps the economies of those countries grow.Read comments on this article, and add some feedback of your own
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