Liberal Media Noisy On Outsourcing: Stays Mum On Insourcing

By: Guest Authors

By: Michael McNesby

Foreign companies have provided over 6 million jobs here in the U.S. in recent years, most of those paying well above the average.

Job displacement is unfortunate but inevitable. In a perfect world, no job would ever be lost. Business failures alone, costs millions of jobs.

Several decades ago, lifetime jobs were not uncommon. Technology and a global market have altered that situation, but also brought far greater opportunity.

In a study by the Organization for International Investment, we learn that 6.4 million U.S. jobs, were provided by foreign companies, in recent years, all of these insourced.

These jobs have been a great buffer against jobs lost in manufacturing. The pace of these job gains has been greater than the pace of lost manufacturing jobs

Insourced jobs pay well above the national average with virtually every state enjoying a plus as a result of jobs coming from abroad. According to Pennsylvania Governor, Ed Rendell, for example, 400,000 Pennsylvanians are employed by foreign companies.

Several weeks ago, Toyota, announced plans to make autos in Mississippi, a move that will add 2000 new jobs in that state. In Michigan, Hyundai will soon be operating an R&D headquarters. Honda and BMW have been providing thousands more jobs in Ohio and South Carolina respectively, for several years.

The 2003 tax cuts reduced the cost of capital for business. The incentives have been a plus for businesses and workers, leading to many of these top insourced jobs.

Job losses on the other hand are always unfortunate, especially in manufacturing. These losses are taking place worldwide as a result of rising productivity. That cannot be changed. Replacing those jobs and adding millions more is the best answer. The insourcing of jobs is vital.

Similar to the United States, the typical country averaged losing 11% of its manufacturing jobs, before the Bush tax cuts. China topped the U.S. in that area, losing 15% of its manufacturing jobs.

As jobs were decreasing, manufacturing output was increasing by 38%. This has resulted in reduced prices for many of our purchases. Of course, reduced prices are good for all consumers, especially those with the least income.

Many economists believe the job market can remain quite healthy through 2007, if congress puts the nation’s health above politics.

The February 2007 jobs report combined with the rapid rise in inflation adjusted wages, revealed that the pace of workers gains in this expansion are well ahead of those in the highly praised Clinton years.

These wage gains suggest a tight labor market and continued wage gains. A strong economy creates net new jobs including those that are insourced.

If congress maintains the lower cost of capital, along with lower individual tax rates, it will be a big plus.

In the meantime let’s hope that many of the displaced workers, become the recipients of those high paying jobs provided by foreign companies.

Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government.

He can be visited at

No Comments

No comments yet.

RSS feed for comments on this post. TrackBack URI

Sorry, the comment form is closed at this time.