March 30, 2004

On Offshoring

Why is it that conservatives like Pat Buchanan can talk about some kind of "America First" economic plan and be branded a racist and yet when people like John Kerry talk about "Benedict Arnold CEOs" there is no such complaint?

I have to say, I'm a bit worried about all this talk about offshoring. Because of the slow recovery, people who are unemployed are wondering why they can't get a job and it's tempting to blame a company or some foriegn country instead of wondering if the answer is more complex.

Before you think I'm just another Republican who doesn't give a damn about the American worker, you should know a thing or two about me. I hail from Flint, Michigan, the auto town forever immortalized in Michael Moore's "Roger and Me." Flint has seen a lot of good jobs in the auto industry vanish-with some going to China. Flint is now a shadow of it's former self. It is a poorer community with little job opportunities. It can be infuriating to see good paying jobs leave to go to another part of the world where costs are much lower. It's hard to see a once proud town wither.

However, I don't think the answer is to create some kind of "fortress America" where we force companies to stay in the US. The fact is, we live in a global society and we dare not go back to the days of high tarrifs like we did in the 30s. The Smoot-Hawley Act of that time is considered one of the factors in the Great Depression. Anyway, we benefit from outsourcing as much as other sbenefit. If you drive a Honda or Toyota, odds are it was made in America.

I think free trade is a good thing and can lead to better lifestyles especially in developing nations like China and India. However, even though capitalism can be a dynamic force for good, it can also lead to massive inequality. This is where the government comes in. If John Kerry were smart, he would be encouraging a free trade agenda, but with massive goverment intervention. There would be money for people to retrain in new jobs, more generous unemployment benefits (France I believe, pays 70% of one's past salary in unemployment benefits) and portable, universal health insurance. Government get in the protectionist game, but create a "safety net" for people who are affected by the economic storms.

Of course, hard core Republicans might slam this saying it is Big Government. However, Kerry could win pro-business votes because making health care protable would mean less costs for companies and he would win working class votes by creating this saftey net for hard-working families. It would be a grand compromise: free trade and a small version of a welfare state. I doubt Kerry is listening to me, though.

If you want another opinion on offshoring, read this story.

Posted by Dennis at March 30, 2004 11:01 PM
Comments

You are right, of course. Importing jobs and offshoring companies is a far more complicated issue than most politicians care to address truthfully. However, I think you miss the mark a bit on John Kerry's position.

He isn't talking about "forcing" companies to stay in the U.S., but rather coercing them with incentives and disincentives via a new tax policy. Companies that export jobs and set up HQ offshore shouldn't get tax breaks...that only creates more incentives to do so.

Eliminating those tax breaks, then creating new ones to encourage companies to stay put is a good old-fashioned moderate strategy that works. And that's just what Mr. Kerry proposes.

On another note, it's heartening to see that there are still moderate Reps around. Though a lifetime Dem, I grew up in a house and a city filled to overflowing with Republicans - real ones who believed in a clean environment, strong business, low taxes, and fiscal discipline.

We differed on politics, but we always had a mutual respect and could meet halfway on most issues. Now, the scorched-earth mentality of today's extremists is well on its way toward killing political discourse. It will take more folks like you to put us on the right course. Good luck.

Posted by: gtrump at April 2, 2004 10:41 PM
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