Thomas Friedman of the New York Times is in India and writing an interesting series of op-ed columns about offshoring/outsourcing. There has been much handwringing over the past year about this trend, and it looks to become a major issue during the presidential elections this year. Despite the populist rhetoric of the politicians on this issue (“the outsourcing of America”, etc.), we would do well to keep Friedman’s observations in mind:
What would Indian techies give for just one day of America’s rule of law; its dependable, regulated financial markets; its efficient, noncorrupt bureaucracy; and its best public schools and universities? They’d give a lot.
These institutions, which nurture innovation, are our real crown jewels that must be protected – not the 1 percent of jobs that might be outsourced. But it is precisely these crown jewels that can be squandered if we become lazy, or engage in mindless protectionism, or persist in radical tax cutting that can only erode the strength and quality of our government and educational institutions.
Our competitors know the secret of our sauce. But do we?
(The Secret of Our Sauce; March 7, 2004)
He is absolutely right. By focusing on the handful of jobs moving offshore, we risk losing the forest for the trees. And this is truly a dangerous situation.
The U.S. must remain competitive in this increasingly global economy–erecting walls around us will only make the situation worse.
(* quote: He is absolutely right. By focusing on the handful of jobs moving offshore, we risk losing the forest for the trees. And this is truly a dangerous situation. *)
How do you know it is a “few”? Some estimates run as high as 1/3 of all jobs. Besides, if it is just a few, then why not toss us few a bone to help us out? Small problem, small solution.
(* quote: The U.S. must remain competitive in this increasingly global economy–erecting walls around us will only make the situation worse. *)
Free trade may optimize widgets, but not necessarily jobs. Are cheap Walmart trinkets more important that good and varied jobs? We cannot all be insurance salesmen. There is the assumption that the Next Big Thing will come to save us. What if it stops coming, or comes to other nations instead?
(* quote: He is absolutely right. By focusing on the handful of jobs moving offshore, we risk losing the forest for the trees. And this is truly a dangerous situation. *)
How do you know it is a “few”? Some estimates run as high as 1/3 of all jobs. Besides, if it is just a few, then why not toss us few a bone to help us out? Small problem, small solution.
(* quote: The U.S. must remain competitive in this increasingly global economy–erecting walls around us will only make the situation worse. *)
Free trade may optimize widgets, but not necessarily jobs. Are cheap Walmart trinkets more important that good and varied jobs? We cannot all be insurance salesmen. There is the assumption that the Next Big Thing will come to save us. What if it stops coming, or comes to other nations instead?
(Sorry about the double post. It was accidental.)