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John Kerry Has Been Outsourcing Truth
By Matt Margolis | October 8, 2004
One of John Kerry’s major arguments on the economy has been obliterated by a recent study released today that states, “Fears that an exodus of white-collar jobs to India and other low-wage economies will lead to massive employment losses in rich countries such as the United States and Britain are not backed up by the facts.”
In a working paper for the U.S. National Bureau of Economic Research, two International Monetary Fund staffers discover no evidence that job growth in Britain is slower in those sectors with a quicker pace of service outsourcing.
They also find no link between job losses and outsourcing in the United States because outsourcing, by boosting firms’ efficiency, creates enough new jobs to offset the initial losses.
IMF researchers Mary Amiti and Shang-Jin Wei say that “the risk of service outsourcing dramatically reducing job growth in the advanced economies has been greatly exaggerated.” The findings of this latest study concur with other assesments by analysts, “including Diana Farrell of McKinsey Global Institute in San Francisco and Catherine Mann of the Institute for International Economics in Washington.”
In fact, the report also says that the United States benefits from jobs that insourced into the country:
In balance-of-payments statistics, outsourced services count as imports. In the United States, such imports of computing and business services have roughly doubled since 1993 thanks to the growth of fast, cheap telecommunications but were still only 0.4 percent of gross domestic product in 2003.
…
“In sum, the notion that large industrialized countries outsource more intensely than other economies is not supported by the trade data,” Amiti and Wei write.
Amit and Wei also say that “the presumption that global service trade is dominated by lopsided one-way outsourcing from developed countries to developing countries is not supported by the data.”
This report absolutely destroys Kerry’s claims that outsourcing has hurt our economy.
But will John Kerry stop telling his lies? Doubtful. Last month when Secretary of Labor Elaine Chao tried to bring out the facts on outsourcing, John Kerry said, “I have no idea how they [the Bush Administration] could say that.”
Maybe because the facts all prove that John Kerry’s position on outsourcing is erroneous. The only outsourcing that has been bad for America has been John Kerry’s outsourcing of the truth. Kerry continually lies to the American people about our economy, and he is sure to continue to ignore the facts.
Topics: John Kerry Watch |
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October 8th, 2004 at 5:54 pm
The IMF does have a vested interest in expanding free trade so those 2 individuals are likely biased in one direction. But that interpretation doesn’t dispel the numbers they’re showing.
I find it hard to believe, from a logical standpoint, that our economy will keep up with countries whose populations are growing and have much more room for economic growth, especially China. Its not a zero sum game but theres a limit to the amount of people who will be able to find decent work when a great deal of manufacturing and certain service jobs have moved overseas. I can’t see there being enough specialized jobs to compensate for the jobs we have lost even if goods cheapen.
October 8th, 2004 at 6:29 pm
“This report absolutely destroys Kerry’s claims that outsourcing has hurt our economy.”
Delusional. That’s what Matt is. Losing jobs from the US is good? Fuck man, toxic waste is great on toast Matt.
October 8th, 2004 at 7:21 pm
Wonder if outsourcing has anything to do with Teresa Heinz-Kerry refusing to release HER financial records. Of course, it could just be a family thing, since JFK2 has refused to release his military or FBI records…
But honestly - Democrats - stop the hate. You dismiss everything outside your myopic anti-Bush view. He’s the center of your nazi like hatred. Be Americans instead of Democrats you wackos.
October 9th, 2004 at 9:01 am
Kahn, I personally didn’t sense any form of hate or even angry in my statement but I’ll play along. Hate is a human emotion, no group has a monopoly on it. Its dull that you have to reference the Nazis everytime you type about Democrats. Can’t you be more creative? I don’t think the democratic party’s “hate” is best compared to a xenophobic, anti union, anti democratic, ideology which bases itself on the extreme right wing. I mean maybe your not a Coldwarrior so redbaiting isn’t your thing, but even then there are still more direct and illustrative comparisons you could be using.
October 17th, 2004 at 7:19 pm
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