[Marxism] Bhagwati's defense of Mankiw
rakeshb at stanford.edu
Sun Feb 15 12:49:45 MST 2004
How many US based jobs is foreign outsourcing costing?
1. If workers are employed abroad rather than given HI-B visas, this
does not take away a US based job from a real American.
2. If in order to penetrate foreign markets and ward off the
emergence of foreign competitors US multinationals set up some
operations within the target national market, this is not really
costing US jobs but rather ensuring the monopolization of the global
market by US companies.
3. If foreign outsourced jobs are doing work that would not have been
economical to do within the US, e.g. telemarketing that has a "low
rate of return", or would have been automated had it been done within
the US, this is not costing US jobs.
4. Automation would proceed with or without competition from the
third world. In fact the availability of low wage workers may slow
down the pace of automation.
5. It's hard to imagine that cutting edge R and D can be done within
the poor third world, given the surplus capital, long time horizon,
linkages and capital equipment needed to carry it out.
I would encourage greater skepticism towards the fear and
scapegoating that foreign workers are the source of all that ails
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