Where are the Facts About Outsourcing

Outsourcing of jobs to offshore companies has beenLiberals are also divided about outsourcing. The
a hot-button issue since the 1960s when the UnitedDemocratic party has traditionally been the party of
States began losing automotive manufacturing jobslabor in the United States but it was a Democratic
to Japan. In recent years, the outsourcing ofpresident, Bill Clinton, who shepherded the North
technical jobs has revived the debate which becameAmerican Free Trade Agreement through Congress,
one of the top issues in the 2004 presidentiala treaty which most experts agree facilitated the
campaign. However, actual facts and statistics aboutcurrent outsourcing trend.
the effect of outsourcing on the American economyFor every argument for outsourcing, there is another
are hard to come by. Rhetoric, not facts, dominateargument against it. For example, the Heritage
the discussion of whether outsourcing has an effectFoundation argues that despite outsourcing more
on the economy.Americans are employed than ever before and that
There is a serious dichotomy between the beliefs ofjobs continue to be created to compensate for
average Americans and those of economists andthose lost overseas. Anti-outsourcing advocates point
other experts. For example, a Zogby International Pollout that gross wages are dropping because the jobs
showed that 71% of Americans believe thatthat are being created are low-level service sector
outsourcing hurts the economy but when the Walljobs, not high-tech jobs to replace the ones that are
Street Journal asked the same question ofbeing lost.
economists, only 15% felt that outsourcing had aThe Heritage Foundation, citing the Organization for
negative effect.International Investment also argues that for every
Opinions on outsourcing tend to be divided byjob outsourced, another is "insourced" to the United
economic status rather than political persuasion. ForStates from another country, often at a higher rate
example, some Republicans in the House and Senateof pay than the job lost. Anti-outsourcing advocates
believe that outsourcing has a terrible effect on thesay that those numbers can't be accurately verified.
economy and that legislation should be enacted toWhat is clear is that until the federal government
stop it. However, conservative think tanks like theconducts accurate research into the effects of
Heritage Foundation and Republicans with ties to bigoutsourcing on the United States economy, there will
business believe that the threat of outsourcing hasbe no definitive answer one way or the other.
been over exaggerated.