February 21, 2008
Obama & Outsourcing
As a loyal Obama supporter, I’m prepared to withstand a bit of political pandering during a tough primary. Hillary’s not going away without a fight.
But, Obama’s latest appeal to the blue collar workers of Ohio – the “Patriot Employers Plan” – sounds as ridiculous (and misguided) as the Patriot Act.
Basically, the plan rewards companies for keeping jobs in the US – something I personally believe is admirable (after all, he’s not running for President of India).
However, the problem is that the plan is, well, stupid:
Mr Obama’s plan met instant scepticism from otherwise sympathetic Democratic economists who said it would require a large regulatory apparatus to put into practice. They also said that companies could “game the system” by spinning off overseas subsidiaries in order to reduce the offshore-onshore workforce ratio. ‘
“I would say that this plan is borderline unimplementable,” said a Democratic economist in Washington. “It is also puzzling. Normally presidential candidates only come up with plans that are unrealistic when they are losing. But Obama is now the favourite.
Mr. Obama, it’s better to stick with strong US training programs, the elimination of tax breaks for companies that have offshore labor (we don’t need them and shouldn’t get them), and most importantly, to stop the hypocrisy that is American economic policy. You can’t lecture others about buying your entertainment, agricultural goods, and Coca Cola, if you won’t give them a fair shot to sell to you.
