We saw two stories over the past few days that likely would give our friend Lou Dobbs an embolism. The first ran in the WaPo last Friday, mimicked by dozens across the country that all touted the same theme, based on the findings of a new Pew study. Said the WaPo headline of the Kim Hart story, “Study Finds Immigrants Don’t Hurt U.S. Jobs.” That’s right. As counter-intuitive as this sounds, it happens to be true. We’ve also posted on it here on several occasions. “High levels of immigration in the past 15 years, ” says the WaPo story, “do not appear to have hurt employment opportunities for American workers, according to a new report.” This basically captures the first line of the study itself, i.e, “Rapid increases in the foreign-born population at the state level are not associated with negative effects on the employment of native-born workers.” Like we said, counterintuitive (especially if you watch Lou Dobbs) but true.
If that story doesn’t give Lou stroke-like symptoms, this one from yesterday’s New York Times by Daniel Gross most certainly will. Entitled, “Why ‘Outsourcing’ May Lose Its Power as a Scare Word,” it has some great nuggets therein. “Thanks to the forces of creative destruction,” it says, “more jobs are created and lost in a few months than will be outsourced in a year.” We’ve also been saying this all along as well. We wondered if they’ve been reading the blog when we read on:
“There is evidence that within sectors, lower-paying jobs are being outsourced while the more skilled ones are being kept here. In a 2005 study, Catherine L. Mann, senior fellow at the Institute for International Economics, found that from 1999 to 2003, when outsourcing was picking up pace, the United States lost 125,000 programming jobs but added 425,000 jobs for higher-skilled software engineers and analysts.
Economists also point out that jobs and services that are tradable won’t necessarily move to lower-cost places. Ms. Farrell of McKinsey said that despite their huge populations, China and India lack enough university graduates with the specific skills and experience to meet the staffing needs of Fortune 500 companies.
In addition, labor costs are only one of many factors that companies consider. Executives have to worry about reliable power supplies and the proximity of vendors and customers. Here, again, the United States has significant advantages over countries like India and China. As a result, only a small portion of the jobs that could be outsourced will be outsourced.”
We can’t count how may times we’ve made the point here that we compete on this country not on wages but on innovation. We’ve also said numerous times that companies locate not because of wages but to be close to reliable energy and customers. Now, even the Grey Lady agrees with us. You don’t think they’ve been reading the blog, do you….?
No matter, we wanted to provide links to these two important stories that cut against the grain of hysterical media as embodied in opinionators like Lou Dobbs.
Latest posts by NAM (see all)
- Manufacturers Win Several Website Design Awards - June 15, 2011
- China Makes Commitments on Trade, Intellectual Property - December 16, 2010
- ITC Details Widespread Theft of Intellectual Property in China - December 14, 2010