6 March 2004
There are genuine economies in store for any business that carefully decides what its core competencies are and outsources other things to businesses that have determined that those things are their core competencies. Offshoring is outsourcing taken overseas.
Neither of these terms implies anything about government involvement. Just to be clear, I think globalization is inevitable. I also think protectionism in any way is a flawed strategy. However, getting government out of our businesses is another thing. Most of the drive for offshoring centers around the fundamental difference in the wage-to-cost relationship for products made in the USA vs. those made elsewhere.
Were our government to immediately lower the many-tax-burden on businesses that has grown over the last six decades, many businesses would be able to rethink their strategy concerning offshoring. What’s the short story? Offshoring is not a result of government doing nothing to ”save jobs;” offshoring is a result of way too much government involvement in the lives of business owners and wage earners to date.
Filed under: Thinking