Outsourcing is a good thing, despite our two presidential opponents excoriating each other over it. Harry Binswanger provides a defense for outsourcing in a recent Forbes article. Here is an excerpt from the article:
Americanism means individualism, but “Hire American” is collectivist, urging businesses to pay more just to patronize “our guys.” This is not rational patriotism, it is not Americanism, it is primitive tribalism.
An individualist makes his purchases based on economic merit, not nationality. Let’s be clear: Economic nationalism is as outrageous as racism. Men, their products and their services must be judged on the basis of their individual, factual qualities, not on issues of race or nationality.
Trade is good, not bad, regardless of whether it is with your neighbor or someone outside the country. So too is outsourcing. It makes everyone more prosperous. Just as no individual should attempt to be self-sufficient (it is a recipe for poverty), neither should any country. Trade promotes peace and harmony among people and nations. Trade enables all to be better off.
The propensity to truck, barter and exchange one thing for another is common to all men, and to be found in no other race of animals.
If a country cannot create enough jobs internally, that does not argue against free trade. Such a condition is indicative of bad domestic policies. Free trade and outsourcing are natural and not at all inconsistent with full employment. So long as domestic policies encourage free markets, initiative and allow proper rewards, there will be no employment problems, regardless of the amount of outsourcing or buying abroad.
People are ingenious, when allowed to act in their own self-interest. Outsourcing is a means to further the wealth of a nation, not a detriment. Only when government gets in the way does employment become an issue. When that happens, those in government will quickly blame everything else on the problem. Trade xenophobia is a political tool to divert blame from where it belongs.
Countries that complain about free trade should look inward, not outward. Free trade is to everyone’s benefit. It has no bad effects. Problems blamed on free trade result from bad domestic problems caused by bad governmental laws and regulations.
One more thing — politicians who talk about “fair” trade are trying to justify more protectionism. These regulations always make people poorer.
H/T to Brian W.