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CIAO DATE: 06/04
Why Your Job Isn't Moving to Bangalore
On The Issues
February 2004
Jagdish Bhagwati
Abstract
Recent criticism of overseas outsourcing as costing American jobs is misguided. American job losses are generally due to technical change, whereas outsourcing actually improves the competitiveness of American companies and increases the overall economic pie.
Greg Mankiw, head of President Bush's Council of Economic Advisers, has been widely criticized for telling reporters the simple truth that "outsourcing" of jobs is beneficial to the U.S. economy (even though he hedged his comment with a "perhaps"). John Kerry, the presumptive Democratic presidential nominee, described executives who import services--such as using lower-paid workers in foreign countries to handle customer-service calls and Internet queries from American consumers--as "Benedict Arnold CEOs."
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