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SullivanSt's avatar

Romney campaign's petulant whining is nonsensical.

They claim, without evidence, and in contradiction of the SEC reports on which the WaPo article was based, that the companies mentioned in the WaPo article increased their US workforces and that these jobs were "created", implying they were a net gain to the US workforce.

Even accepting their claims at face value, their implication is garbage. The <em>entire point</em> of outsourcing, even domestic outsourcing, is that the outside company can perform the outsourced function more efficiently - <strong>i.e. with fewer people</strong> than performing that function in-house. There is a claim, with a certain degree of legitimacy*, that this increased efficiency will free up funds for creation of additional jobs, but the jobs "created" at an outsourcing company are basically always outnumbered by the number of jobs "creatively destroyed" inhouse, and should never in and of themselves be considered a net-increase in American jobs.

* although as Paul Krugman has pointed out, in normal economic times even those freed-up funds will never lead to a net increase in American employment as the Fed has a target unemployment rate and tools that are usually effective in achieving it. Right now unemployment exceeds that target rate and the tools are ineffective, so right now the argument in favor of <em>domestic</em> outsourcing applies, but in general it does not.

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fuflans's avatar

and makes him sound like newt.

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