Sen. John Kerry, while infinitely better than Dubya as a choice for president, is being dishonest with his carping about “Benedict Arnold” companies. Sure, we shouldn’t use tax policy to make it more profitable to move jobs abroad, but it is profitable principally because overseas labor is cheaper.
Meanwhile, insourcing, jobs in the U.S. created by foreign companies, has provided 170,000 Virginians with jobs as well as 6.4 million Americans across the county, according to a Richmond Times Dispatch story today.
A better policy than protecting jobs that increase the cost of goods to Americans and protect dying industries would be one that articulates a transition for displaced workers. Some workers, too old to be profitably re-trained, may need hand-outs over the short-term and their retirement plans fully funded by the federal government. Middle aged workers would need brief financial support and then re-trained (perhaps partly at taxpayers’ expense) for the jobs coming to the U.S. and the ones for which this country can maintain a competitive edge. Younger workers must find affordable education.
And all of us need to realize the costs. If you prop up dying industries, be prepared to pay more for their goods and services. If you don’t, be prepared for a generation of workers who must accept a lower standard of living or find illegal sources of income. A better alternative, of course, is an education that will train them for sustainable jobs or give them the tools to enterprise.
But punishing companies that move overseas in the long run costs us all.
You can find more about the study the RTD story is based on here.