Jobs and snow jobs
Thomas Sowell (archive)

September 9, 2004 | Print | Send

Jobs have become a big issue in this election year -- which means that it is optimistic to expect a rational discussion.

Nothing is discussed more irrationally than "outsourcing." It is obviously completely misleading to discuss how many jobs American companies are sending to other countries without even mentioning how many jobs foreign countries are outsourcing to Americans.

Yet those who are making the most noise about outsourcing seldom say a word about the in-sourcing of jobs from other countries. But it is the net balance that matters.

Maybe those statistics are hard to get. But you certainly won't get them if you are not even looking for them and avoid even mentioning them.

Official statistics published last March in the Survey of Current Business showed an increase of 2.8 million jobs outsourced by American-owned multinational corporations during a quarter of a century ending in 2001. Over that same span of time, there was an increase of 4.7 million jobs outsourced to Americans by foreign-owned multinational corporations.

These numbers go back and forth over time. But they don't even exist in the rhetoric of those denouncing outsourcing.

Any laws passed to stop the outsourcing of American jobs to other countries are almost certain to bring laws in other countries to stop the outsourcing of jobs to Americans.

We had something like that during the Great Depression of the 1930s, when international trade restrictions were imposed in order to save jobs during a period of record unemployment. Countries around the world did the same thing, with the net result of a sharp reduction of international trade and a needless prolonging of the depression.

Many policies designed to "save jobs" have effects that are the opposite of their intentions. Germany has some of the strongest job protection laws in the world -- and double-digit unemployment rates are common in Germany.

Job protection laws add to the cost of labor. These laws may save the jobs of those who already have jobs but the passage of time brings new young job applicants into the labor market and the high cost of labor means that employers have incentives to get their work done by substituting machines for workers or by shifting to producing products that require less labor.

Countries in the European Union as a whole have stronger job protection laws than the United States -- and higher unemployment rates because their rate of job creation is much slower.

On the other end of the spectrum, there has probably never been any place with a more unrestricted labor market than Hong Kong when it was a British colony. Unemployment rates of one or two percent were common in Hong Kong then. After China took over Hong Kong, it created various new benefits for workers -- and unemployment rates hit 7 percent, not high by European standards, but a multiple of what it had been for years.

What all this says, in various ways, is that there is no free lunch -- not even during election years.

Senator John Kerry says that he would create 10 million jobs if he were President. But Presidents don't create jobs.

The most a President can do is have policies that allow private employers to create jobs. Foolish policies can destroy jobs and prolong a recession or depression but Presidents cannot "grow the economy," no matter what political rhetoric says.

Of course the government can hire more people or favor a particular industry in one way or another, and thereby cause employment to be greater in that particular industry. But the government has no money of its own, and the money that it takes from the private economy to increase its own hiring or to promote hiring in some favored industry reduces the money available to hire people elsewhere in the economy.

President Bush's tariffs on imported steel may have saved some jobs in the steel industry but estimates are that the higher price of steel that resulted cost several times as many jobs in industries that use steel.

With jobs, as with anything else, it is the net result that counts -- and there is no free lunch, not even in election years.

�2004 Creators Syndicate, Inc.

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I just called sasllie mae servicing to ask a question regarding a loan that my child has for college costs and the person answering the phone was located in INDIA! my husband lost his job two years ago due to Bank of America (there is a mis-nomer) outsourcing jobs to India and now our government is doing so also! Why can we not put quotas on how many jobs are to go overseas? Maybe when we have a deep depression and the bread lines are miles long will these greedy companies and government learn. I am so angry and very scared for the future of our country.

Sir:

I could not find a way to reach Rob Portman, so decided to post this message and also send it to anyone who will listen in the hopes someone would forward it to him.

I was raised a Republican. I believed in the party and voted that way until recent years when I determined that the Republican party of today is nothing like that of yesteryear. In fact, its representatives are becoming as corrupt as the party itself. Sadly, the representatives of the Democratic party seem to be no different.

We have simply given away the majority of the wealth of this country in recent years...not to benefit and raise up the poor working class of the world...OH NO!

Every trade policy in recent years has been initiated only to benefit the large corporation and its very rich. Throughout History, all great economic advances have been made upon the backs of the poorest and most wretched "HAVE NOT's" who must play the game by whatever disgusting rules are laid upon on them by those that "HAVE".

There have been a few very brief moment's when Labor has risen up and demanded fairness and equality. But, now that the African Americans and other minorities in this country are finally protected by law and thus treated fairly and paid equally...these unethical "HAVES " are on the hunt again for new blood to feed their neverending lust for money and power.

Sure, they can get richer by moving all of America's good jobs to other countries. But it would be so much easier and cheaper to just import "new slaves" right into this country...keep them as non-citizens and call them undocumented workers so that they have no voice and do not qualify for fair treatment under the same EEO rules that TODAY protect the "legal' workers of this country. These poor wretches will do America's work at a fraction of the cost and The HAVES will thus break the backs and the wills of the great middle class who are now the only obstacle that stands in the way of their evil progress.

I am calling LOUDLY, and LOUDER YET for a new "millions men and women's march" to Washington D.C. Mr. Portman, Mr Bush, Mr. Cheney, and all the rest of you, "you know who you are"...

WHAT PART OF NO DON"T YOU UNDERSTAND?

Donna J. Shelton
Blanchester, OH

Lou: The latest White House bomb is the lack of leadership or sensitivity relative to border and port security.
Trying to pass this latest outsourcing deal to an Arab country with former ties to 9/11 attack is beyond belief.
I wonder how many of the previous 5000 or more deals have slipped under the radar.
King George should be outsoursed back to Crawford.
Dick
Issaquah Wa

Dear Mr. Dobbs,
Thank God there are still some jounalists, like yourself, who report the "real" news. America, especially the voters in middle America, the so called "red states," need to be told the truth and shocked into reality of what is really going on. People need to know the truth about the Bush regime and how he has sold out the American people and how now he is trying to sell out America with his repulsive port deal. I realize you are risking your job reporting this story that will not go away after 45 days. I know they are trying to "shut you up" just like they did with Dan Rathers. If you're with them, you're against them attitude has got to stop! I admire your courage, your wisdom, and your persistance to let the truth be known,
Sincerely,
Mary Kamlet

I am proud you finally decided to just say it.. The Dead Moose on the Table stinks and no one is really saying anything about it. George Walker Bush has managed to somehow lead Congress into an open defiance of the people. Our economy has never been as bad off at it is now.. the signs of "health" are superficial and the infection of soaring debt, and out of control housing costs are festering. We are now engaged in yet another Viet Nam soldiers die in a jungle of sand now. I have no qualms about a war, but.. if you want to wage war, then let's wage WAR.. thes police actions never have worked to our advantage and have always resulted in shame for our country. Lives have been ruined forever, soldiers put in harms way all for what? So Afganistan can hang its people for deciding to convert to another relegion? Not even the Evil Empir of the Soviet Union was that bad!
Our jobs are being sent oversees, threatening both the physical and financial security of this country. I dont know how to say this nicely.. but.. if I were a terrorist.. I wouldnt attack the USA directly- too complex.. I would go take out a few major US outsourced data centers in India.. knock out some major development sites.. and truely STOP commerce in the USA.. Dont need to take out a major home site- haha.. I can see it now.. Bush deploys Homeland Security to Bagelor, India to protect US assets.. Bush's BoyScouts..

Dear Mr. Dobbs:

Thank you for representing me!.. it's clear no one I've elected is interested in that activity!

I wanted to write to tell you that never before have I felt so betrayed by my own government- it is so bad that I am at a loss for what to tell my 16 year old son. How do I tell him to respect the office of the president? Ive never before felt so un-represented. Jobs are being outsourced at an amazing pace- and now, the congress proposes to do what no other country in the world will do- simply open the door to unstricted immigration, effectively decriminalize illeagal entry into the country.

Is George Bush actually an agent for a foreign power interested in the destruction of the United States?.. Yeah I know.. sounds like something a nutcase would say.. but.. he supports and actively engages in the loss of jobs to cheap labor abroad, is intent on opening the boarder to unrestricted immigration..

Who does this guy work for? India? China? who pays his salary cause he doesnt seem to be working in my best interest?

Mr. Dobbs- I have an idea-
Every loyal American who needs any sort of government assistance should immeadiately immigrate to Mexico. Now.. I suggest that rather than go over one of the normal border entries.. you simply run into Mexico.. dont bother with all those Mexican government forms and stuff.. besides.. those are all in Spanish.. see.. they speak Spanish there cause they hate us Americans.. yep.. they do... otherwise they would speak english out of respect for our culture.
Now.. once across the border- demand fee medical care- government benefits, housing etc.. and also.. demand they everyone there speak English because that is your native language and culture. In fact while you are there.. you should make sure to completely reject Mexican culture, their values and such... and then demand that they pay proper respect to your American heritage.. as well as what ever other heritage you hail.. so.. if you are an American.. but of Irish.. or other background.. demand that they pay proper respect to both of your heritage backgrounds.. Demand that they offer classes to you while they are paying for your medical bills, and housing .. you need to learn to speak Gailic because you have family from there years ago and you dont want to lose track of that marvelous heritage..
Now if enough of us do that.. then we can have protests in this country.. with none other than George Bush claiming that American immigrants are beng discriminated agains in Mexico..

Think about it will you.. it;s a nice idea.. we could flood Mexico with American Immigration.

I have an idea to help stop outsourcing to other countries and lower gasoline costs here in the USA. THis will work if everyone helps.

When you call a company and the customer service agent is clearly in India or Chinsa

1. If you can, Cancel your account with that company without further discussion and tell them you dont support offshoring.

2. If you cannot cancel your account, or do not want to.. tell the agent: "I cannot understnad you because of your accent.. please get me another agent".. this is often really true. Keep doing that.. as long as you have time to.. if enough people do it.. this will lower their productivity level, and make it more expensive.. canceled cards will really upset call center managers.. this will eventually stop the offshoring of call centers at least.

3. Dont fill that gas tank!!! Purchase only enough gasoline to go ONE DAY and no more than a qtr tank of gas at a time. Do any of you have any idea how much gasoline you are warehousing for the refineries in your cars? Not only are you warehousing the gas for them for free.. you are actually paying them to have gasoline sit in your tank rather then theirs!!... If everyone did this.. or a significant number of people did this.. the excess would back its way up all the way to the refinery and to the ships at the dock!
Also.. with less gas in your car.. and having to go to the gas station more often.. you wont drive as much.. which is good for everyone!

America.. its time to fight back! Anyone consider how great it would be to have a progressive 500$ a gallone tax placed on automotive gasoline. If American industry knew that gasoline for a car would be out of reach for consumers in say 5-10 years.. tax going up every year.. whole industries would come into being.. alternatives.. rather than destroy the economy as the Bush administration would like you to think.. it would spring it into action.. "Careful lest you wake a sleeping giant!". Imagine.. once auto fuel is no longer used.. Saudi Arabia and its sister nations can go back to being just another third world country..

Jason

Why Americans are going broke.
A Must See Video:
http://www.freedomtofascism.com/

You'll be hunting online for tar and feathers after this one.

The more you give truthful news the more CNN is trusted. Broken governments (cafferty) is just scratching the surface of the deep deep hole your corrupt government and big business leaders have fallen into.

A high percentage of the public knows the 9 11 towers were bombed and it was an inside job. I will really trust CNN when they start airing programs like Loose Change 2 (just like they aired it on mainstream television "down under" earlier this year).

Our democracy is continually being eroded when the TRUTH IS NOT TOLD, so in order to really become the most trusted name in news, when are you going to start reporting stories that threaten the essence of democracy, or have all those lives that have been lost in the world wars just been a waste of effort, so that the oligarchy of George W Bush can continue its strangle hold on democracy.

GET REAL CNN and report the real truth behind the controlled demolitions that took place in all three towers that fell that fateful day.

Here's a tid bit for you. Did you know that George W's brother Marvin was on the board of directors for Securicom who had the security contract for the twin towers. THAT IS HOW THE EXPLOSIVES GOT IN THE BUILDINGS. Cut the crap about Al Qaeda, that is CIA diversion from the truth, that the global elite are taking over the world through fear and intimidation. If you really care about democracy expose the murderous lying politicians and financial elite that will do anything for money, including KILLING THERE OWN AMERICAN PEOPLE!!!!! You could be next at the hand of Bush, if you keep telling big business's version of "the truth"

You will be the most rusted name in news only when you start reporting the truth, and not the BS that your big business brothers tell you to report.

Over 2.5 million Americans have already viewed Loose Change two and you can too on Google video at

http://video.google.ca/videoplay?docid=7866929448192753501&q=loose+change+2

Come on CNN I want you to be the most trusted name in news, but only when you start reporting the truth about what happened on 9/11

Scholars scientists and many respected professionals have told us what really happened on 9/11. Why are you not telling us the truth oh "trusted One"

Joe Paranto

Dear Lou,
Please fight for us disabled people like you fight for the people who really DO have an income, "the middle class". How about us in the lower class, we need help more then the middle class does but I hear no voices. Your economist on your show pointed out to you that lower class people were having the hardest time financing a college education. You blew right by her comment of which she made reference too, twice. Again, the lower class needs MORE help then the middle class Lou. Where are you?

Dear Lou,

THis letter speaks for itself. I wrote it in desperation. Can you help?

TO WHOM IT MAY CONCERN:

I, Johann Duerichen, moved to the USA in July of 2001 after being hired by External Power LLC in Athens, Ohio as a combustion engineer to help develop a biomass burner for the purpose of providing heat and electric power for small businesses and home owners. At the border, with proof of my engineering degree and a letter from my new employer, I was granted “TN” status so I could legally work in the US. At that time I had been separated from my wife for a time, so that bringing in family was not an issue.

During the following year I helped develop this burner and proved that it would heat and create electric power. At the end of the year I went back to Canada and renewed my TN status, but it was made clear to me that this was a “temporary “ status and that there was no guarantee that it would be extended from year to year. (Wikipedia confirms this to say normally you have 3-4 years: see “Canadian citizens” under http://en.wikipedia.org/wiki/TN_visa#Canadian_citizens ).

The mass production of this co-generation system proved to be too expensive, so Wood-Mizer Products Inc, the parent company of External Power, transferred me to Madisonville, Kentucky for other related development projects. Concerned about my future with the company, Wood-Mizer applied for my permanent residency in July of 2003. A year later the Department of Labor finally arranged for advertising my position with Wood-Mizer. This proved that no one else in the area was interested in my position. After another year and another extension of TN status, I became alarmed when the Department of Labor would not answer my inquiries on how soon I would receive official confirmation. It was not until Congressman Ed Whitfield was contacted for help that I found that they were still only processing 2001 applications.

In the mean time I made a trip to my birth country, Austria. There, in my home town, I met a childhood sweetheart, Friederun, and immediately fell in love. On inquiring, I was told that all she needed was a TD visa to go along with my TN status and she could legally live with me in the US. On June 3, 2004 we were married in Madisonville and began a happy life together. Friederun sold her condo and packed all her things and moved to Kentucky. She got joint ownership of my 100 year old Victorian home. We spent 2 hard years restoring it to its original condition. However, a new nightmare had begun. Whenever we would go back to see her family in Austria, or visit my children in Canada, there were difficulties for her at the border. Since I was Canadian and she was Austrian, it seemed to be an unusual situation. Together with my temporary status and not knowing when it would be more permanent, Friederun became more and more uneasy about our future life together.

I was asked again to see if a simpler approach to co-generation could be developed just by using the Wood-Mizer customer’s sawdust. They have thousands of small sawmills all over the world that make a lot of sawdust. I designed a simpler system 2 years ago, and now we are at the brink of a new breakthrough in heating and electric power from bio dust that an average home owner or small business owner can afford.
When my oldest daughter became an American citizen we had renewed hope. She could sponsor me to get permanent residency. On December 5, 2006 after about $1,600 I became permanent resident! Now I could apply for Friederun’s Green Card. I sent in an I-130 to sponsor her only to find out there was a 2 year waiting period. Well she had already lived here 3 years …. But that didn’t count. When I received conflicting suggestions from US Immigration and the US Consulate in Austria, we went to the local Immigration office in Louisville in person. There we were told there was no problem: we just needed do make full application for her permanent residency and then we would get a travel document (I-131) while she was waiting for the green card. Well, another $1,000 later with numerous expensive certified English translations from German documents and a special medical examination in Nashville we send in all the papers on April 16, 2007. On April 29 we get all the papers back with a big rejection notice referring us to a bulletin on the web which I found doesn’t exist yet. I found yesterday that Wikipedia is clearer and more up to date on Immigration information. There (under http://en.wikipedia.org/wiki/United_States_Permanent_Resident_Card#Green_Card_holders_and_nuclear_families ) scrolling down to ”Green Card holders and nuclear families” it is clear that Friederun has no chance to legally stay in the US after her TD visa runs out in July.

Those are the facts as I understand them. The other fact that I hope the reader will understand is that this situation has rendered my wife very close to a complete nervous breakdown. She literally has nowhere to go. Her children in Austria have no room for her. We are not financed to keep 2 residences, especially at the cost of residences in Austria.

At a time when President Bush asks for renewed effort for the US to become energy independent, I would hope a solution for us to remain legally in the US can be found.

There must be a sane solution …..

Johann Duerichen