What's your opinion on Obama's anti-outsourcing policy?

[Cosoft]

Recently, President Barack Obama had announced new proposals to end tax breaks for American companies that outsource jobs offshore. These policies aimed at preventing job losses within U.S. But according to Mann (2003) because of offshore outsourcing United State’s GDP had experienced an additional growth of $230 billion between 1999 and 2007”. Using the IT hardware industry as an example, Mann (2003) expects the offshore outsourcing of business process services to also lower prices to the consumer, making business-specific packages more affordable and leads to higher productivity among U.S. workers. Also, Theory of Comparative Advantage can explain why outsourcing is prevalent now.

Is offshore outsourcing propelling or draining on the U.S. economy? Is outsourcing the root cause accounting for job losses in America? What’s your opinion on offshore outsourcing?

[Natural Elements]

I will say services should not be outsourced, but hardware industry should be ok if all the countries provide products that comply to the country destination.

[daemon king]

Did you listen to the speech?He particularly mentioned Bangalore,India.He is definitely afraid of the Indian nation.He dont want his country to trail behind other nation.Obvioulsy trying to harden things.

[Hades]

By making it more difficult to the outsourcing companies he won't end unemployment, instead he is creating a new black market for outsourcing. Companies will start outsourcing without declaring it, which hurts the US economy even more.

I'd say take advantage of the fact that outsourcing is so cheap in your country due to the high dollar and low currency in the outsourcing countries, and employ US experts in the high level jobs such as project management, system analysis, engineering jobs.

It's better to have more qualified professionals working at management levels rather than small jobs that can be done dirt cheap in other countries.

Edit, if anyone looks for a source, the speech was made in february, and can be read here:
http://www.stockadv.com/2009/02/26/o...h-to-congress/

[marshalprince7]

Haven't you read recently that the protest to his opinion on anti-outsourcing policy is on in USA itself. Companies are saying this is going to create extra burden of money on them in so called recession and are not able to go with it.

So the decision taken in care of only USAns employees( who are not now) is not right.