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Re: Outsourcing US jobs to India



From Moscow, Cameron Sawyer says: "Harry Papasotiriou hits the nail on the head. Productivity is the WHOLE key to prosperity. And a key engine of productivity growth is the 'outsourcing' of low value-added work of all kinds, which we started to do with vigor in the '60's by sending manufacturing work to Japan. Sending low level programming and call center type work to Bangalore is just a continuation of a trend which has been going on for at least 40 years, 40 years in which America has reached new heights of prosperity, especially among workers.

It is absolutely obvious that this mechanism does not lead to higher unemployment. Literally millions of jobs have moved overseas since the '60's, but the overall unemployment rate trends downward. That is because low-paying jobs moved overseas are replaced by higher paying jobs here in America. This international division of labor is even more beneficial to the U.S. than it is to places like India, precisely because of its effect on U.S. productivity. We get the cream of the global economy, which benefits workers just as much (if not more) than the so-called 'fat cats'. But inasmuch as our crummy, low-paying jobs are better than what the Indians had before, the Indians benefit as well, and their rising prosperity creates new markets for U.S. goods and services and new sources for investment into our economy. It is a 'virtuous cycle' in which everyone wins".

Ronald Hilton - 11.02.03


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