www.townhall.com/columnists/brucebartlett/printbb20041012.shtml
In August, economist Charles Schultze, chairman of the CEA under President Carter, looked at the number of jobs lost to outsourcing. He found that between the end of 2000 and the end of 2003, at most 215,000 jobs service sector jobs were lost. This is a miniscule amount in a working population of close to 150 million. Moreover, Schultze says, the productivity gains produced by outsourcing raised real incomes and living standards in the United States. He concluded that outsourcing cannot be blamed for the "jobless recovery."
In July, economist Martin N.Baily, chairman of the council of Economic Advisors under President Clinton, loked at who benefits from outsourcing. he found that for every $1 spent by a U.S. corporation on outsourcing to India, only 33 cents stayed in India. The other 67 cents came back to the United States in the form of cost savings, new exports, and repatriated profits. However, productivity gains add another 45 cents to 47 cents of value to the U.S. economy. Thus in balance, the U.S. economy gains $1.12 to $1.14 for every $1 invested in outsourcing.
In August, economist Charles Schultze, chairman of the CEA under President Carter, looked at the number of jobs lost to outsourcing. He found that between the end of 2000 and the end of 2003, at most 215,000 jobs service sector jobs were lost. This is a miniscule amount in a working population of close to 150 million. Moreover, Schultze says, the productivity gains produced by outsourcing raised real incomes and living standards in the United States. He concluded that outsourcing cannot be blamed for the "jobless recovery."
In July, economist Martin N.Baily, chairman of the council of Economic Advisors under President Clinton, loked at who benefits from outsourcing. he found that for every $1 spent by a U.S. corporation on outsourcing to India, only 33 cents stayed in India. The other 67 cents came back to the United States in the form of cost savings, new exports, and repatriated profits. However, productivity gains add another 45 cents to 47 cents of value to the U.S. economy. Thus in balance, the U.S. economy gains $1.12 to $1.14 for every $1 invested in outsourcing.
