June 28, 2004

Boston Paper: Kerry, Democrats Wrong on Outsourcing

"Outsourcing" is the Left's latest economic bugaboo, the trend they hail as proof of the failure of President Bush's economic policies, or even of the evils of globalization. And so it warrants a closer look. The Boston Business Journal, in John Kerry's hometown, took a closer look - and says Kerry is wrong about "outsourcing." (free reg. req.)

The United States is on the winning side of outsourcing, gaining far more jobs from the process than it loses. A McKinsey study says the money saved from the lowered costs of outsourcing and redeployed labor produces a net gain in the United States. ... The Democratic national leadership is advancing a plan to repeal tax breaks to U.S. companies that deploy foreign outsourcing as a way to protect jobs. But such reactionary economic policy seems to ignore the facts and may induce the aura of temporary protection at the risk of forfeiting genuine growth opportunities.

Larry Wright, district representative for the Performance Metalformers Association, says his views of outsourcing and free trade haev evolved over the last decade.

"If you had asked me five years ago, my opinion would have been different," he says. Now, Wright firmly believes the globalization of the marketplace has boosted the U.S. economy and manufacturing in particular.