Did you know that for every job outsourced overseas, two jobs are created in the U.S.?   Business school freshmen learn this in Management 101 class. 

It works like this.

When a company outsources overseas (or within the U.S.) it cuts its cost.  The competitive product results in more sales.  It hires more employees to process the orders and make the product.  

Result:  MORE jobs.

During 1991 to 2001 India and China took on outsourcing roles.  Their economies grew by 2.8 million jobs.  U.S. based employment (multinationals) grew by 5.5 million jobs.

The economic growth of the 1990’s was NOT because of a higher income taxes on businesses and dual income couples making $250,000.  It was a result of advanced technologies, global communications and phenomenal productivity all fueled by computers, innovation and the free market WHICH INCLUDED a global network of suppliers – we call outsourcing!

President Obama’s Plan

President Obama wants companies to shut foreign outsourcing.  That means:  no savings, less profits, less tax revenue, and fewer jobs.    

So the President wants to hurt corporate growth, job growth, and reduce tax revenues.   

Is this all the Obama campaign has for a reelection strategy?

If the President was serious about the economy he would be honest about the importance of outsourcing to our overall economic health.

But then ….. that would require understanding economics.