A primer on the problems posed by outsourcing

Posted by scapozzola on 03/13/2011

The New York Times' Upfront Section asked "Is Outsourcing Good for the U.S. Economy?"

In an opinion piece, Alliance for American Manufacturing (AAM) Executive Director Scott Paul offered a point/counterpoint argument on the question of whether the U.S. benefits when jobs once done in the U.S. are now "outsourced" to other countries.

Paul's key points:

  • When Americans lose jobs to outsourcing, they typically "end up in new jobs with substantially lower pay."
  • Overall, outsourcing "places downward pressure on U.S. wages in general."
  • Offshoring of U.S. production has increased our nation's trade deficit.
  • As U.S. manufacturing has moved offshore, more innovation has also moved overseas.

Read the full article.

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