The debate over American companies outsourcing jobs is often tainted by misconceptions and anecdotal evidence, which the media tends to accept at face value. But as outsourcing emerges as a hot-button issue in the presidential election , it is time that some of the most common myths about outsourcing be dispelled.
Radley Balko, Fox News
There is still a real danger that politicians working with incomplete or incorrect information will hobble American competitiveness. Scapegoating poor Third World countries, “Benedict Arnold CEOs,” and free trade will not improve the US economy or labour market, but would likely cause great harm.
Tim Kane, Brett Schaefer, and Alison Fraser at Heritage.org
Political and emotional baggage has made outsourcing an explosive issue, especially in countries which offshore work. Here are some myths about outsourcing and the truths behind them.
Myth No.1
Outsourcing takes jobs away from Americans
The truth
It is usually taken for granted that when a company creates say 1,000 jobs abroad, they will take away these 1,000 jobs from the US . But the truth is far from that.
Go to Techsunite.org, the Website run by an 'IT workers union', and you will find that there is a board declaring the number of jobs outsourced and lost. Starting April 1, 2001 till date, 160,785 jobs were outsourced. At the same time 99,556 jobs were lost in the US , meaning many more jobs were created abroad than were lost in the US .
Also in case of companies like JP Morgan and EDS many more jobs were outsourced but that did not come at the cost of US jobs as such. (JP Morgan created 5,840 jobs abroad at the cost of 800 US jobs. In case of EDS, 17,600 were outsourced at the cost of 2,750 US jobs only.)
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