Feb 7, 2004
Outsourcing and Nationalism
I suppose I should talk about economics from time to time, so here's an excellent
piece on outsourcing by
Bruce Bartlett.
The various debates over free trade and globalization continue to remind me how
important a longer-run historical perspective is. So much of what's happening
today in the poorer parts of the world parallels
similar processes during the growth of the West 200 or more years ago. As well,
the movement from manufacturing to information/services in the West, parallels
the movement away from agrarianism in the West 100 or so years ago. Lastly, the
nationalism that pervades this debate (and the immigration one!) also bothers
me a great deal. The argument for the free movement of goods, services, and people
is that it makes everyone better off, not that it makes Americans better
off. If American workers suffer some short-term losses so that Indians can substantially
improve their well being through outsourced jobs, or that Mexican immigrants
can do the same by coming to the US, then let's go for it. The US will benefit
over time, of course, but that shouldn't be the primary concern.