See Also: Free Trade, Globalization, Multinationals and Competitiveness
Issue: American multinationals have been outsourcing American jobs for years. This has had an enormous impact on the availability and quality of American jobs. It has also placed a downward pressure on wages in all industries. Outsourcing and insourcing are the biggest threat to current and future generations attaining the American Dream. We not only need jobs, we need high paying jobs.
Arguments For: Outsourcing has been a disaster for working Americans and something must be done to discourage it.
Arguments Against: In a free market economy, companies cannot be told where to produce their goods.
Discussion Point: Suppose incentives were given to companies that do not outsource jobs and penalties were placed on those that do.
Protectionist Polices are “Un-American”
The government shouldn’t meddle in the free market. To move toward protectionist policies will simply raise the price of US goods abroad.
Outsourcing is “Un-American”
The government shouldn’t meddle in the free market? How ‘bout if multi-national corporations don’t meddle here? These companies are “Un-American”! They answer to no one but their board of directors interested in the latest quarterly profits worldwide, not in America where the cost of living (and therefore wages) is the highest in the world. They are nothing short of foreign interests. Besides, exports are such a small part of the overall economy that hurting them is worth it if it brings jobs and profits back to the US.
“Trickle Down” has become “Trickle Out”
In the Reagan years when “Trickle Down” economics was popularized, it more or less worked because the US economy was less susceptible to foreign influence. Now that nearly every item sold in the USA is made in foreign countries, profits on these items as well as jobs go abroad instead of staying in the US. The inequality of incomes is already wide enough in the US, but when compared to the entire world, that “large sucking sound” Ross Perot spoke of is now a raging tsunami sucking jobs and profits out of the US. If we continue to allow all money and jobs to flow out of the US, it’s simply a matter of time before the entire economy collapses – perhaps even the world economy.
Here is a further description of the situation we are now in
Stop Pretending the World is a “Free Market”
Contrary to popular myth perpetrated by large multi-national / transnational corporations, America is not a free market economy and neither is the global economy. Every other country in the world fiercely protects its economy with tariffs and the like. America is the ONLY COUNTRY that doesn’t. Why is this? When did Americans vote for such a policy??
Treat American Companies that behave like Foreigners like Foreigners
If American companies want to outsource, so be it. But then they need to be treated like foreign companies and subject to the same tariffs foreigners are. They are no longer American companies they are transnational.
The Free Market should determine wages, not the government
The government shouldn’t meddle in the labor market.
Outsourcing is not a “free” labor market
We believe in allowing the free domestic market to determine wages – that’s fine. But not the global wage market! Think about how insane that is – for Americans to live in America and pay American prices to survive, yet have to work for wages determined in third world countries. That’s not only unfair; it is a recipe for social disaster. Imagine trying to encourage your children to get a degree in say medicine or engineering only to have those jobs outsourced.
It’s the Jobs, Stupid!!!
All of the unemployment numbers are bogus and don't even count many who have simply given up looking for work. Unemployment measurements are and always have been underestimated and don’t account for people who take jobs for one fourth of what they were paid last year! Americans would gladly pay higher prices if it meant jobs would stay in America and they could earn a higher wage. Jobs mean more money for all Americans due the multiplier effect on the economy from consumption spending. Without jobs, the entire economy collapses.
Proposal: Place tariffs on wages exported to foreign countries and treat any company with any foreign offices as the multinationals they are by placing tariffs on all their goods sold here in the US.
Why this is a reasonable compromise: There is no need for a compromise on this issue – there is nothing to compromise. There is absolutely no valid justification for the American government promoting outsourcing policies – it is simply against the will of the people. It does not benefit Americans in any way and in fact it damages them immeasurably.