10/15/2004

What about outsourcing?

In one of the Presidential debates, Senator Kerry claims that President Bush is wrong to provide a tax break for companies who outsource their jobs. If a company is going to be successful, they must control costs. If it is advantageous for the company to employ people in another company, why should we stop them? I'm not so sure about a tax break, but a U.S. company that becomes successful, regardless of outsourcing, will still contribute to our economy and make all of us better off.

5 comments:

Bryce Larkin said...

I am always for tax cuts to businesses, but I don't know if a tax cut should be given to businesses that outsource. Maybe I'm not seeing the advantage for the United States. On the other hand, I think there shouldn't be any advantage for outsourcing or using Americans in the business. The businesses should be treated the same.

pramahaphil said...

Although I believe that Kerry is wrong in beleving that he can stop companies from outsourcing through manipulating the tax laws, the issue is a very potent one for union workers and manufacturing line workers. There is just know way in a election year that you can say to a manufacturing worker that his losing his job is a good thing for America, because they are worried about their own bottom line.

peter_parker said...

I agree about the fact that outsourcing can definitely be beneficial. I also agree that it is hard for someone to understand why losing their job is a good thing. Yeah, economic laws work but that doesn't matter when you have kids to feed.

One argument against outsourcing is national security. For example, what would happen if we sent all of our steel industry overseas and had nothing domestically being manufactured and suddenly those supplies are cut off due to war or conflict. The effect would be even more drastic with commodities like beef. Yet the argument is losing strength as the likelihood of such occurrences is low.

John West said...

Outsourcing should not be looked at negatively. When Kerry does so, he is insulting the American public's intelligence.

Dr. Tufte said...

Here's a more basic point: is the tax system for raising revenue, or punishing practices we don't like?

We'd have a lot more clarity in our political process/thinking if we just focused on one of those and made the whole thing more up front.