|Neither Dr. Catherine Mann nor
any of the 30 Institute for
International Economics researchers would explain their claim that "there is
no question that shipping jobs overseas creates even more jobs in the long
run." I have phoned Helen Hillebrand,
IIE Media Relations 202 328-9000 twice - still no response.
NOTE: IIE it closely associated to CFR, which is a key advocate of free trade pacts like NAFTA and FTAA: The chairman of both organizations is Peter G. Peterson. David Rockefeller is honorary chairman of CFR and is on the board of IIE. The following are on both boards: George Seros, Carla A. Hills, Laura D'Andrea Tyson.
Dr. Mann provided me the following supporting docs, but they don't resolve the questions I raised.
Dear Dr. Catherine Mann, Senior Fellow at the Institute for International Economics,
I've read your quote in the following article:
"[Shipping jobs overseas] does create more jobs in the long run. They are different jobs. They will be more skilled jobs, but there is no question that it will create more jobs in the long run," said Catherine Mann, senior fellow at The Institute for International Economics.
I keep hearing economists make this claim. But not one has been able to explain the basis for this claim - aside from abstract economic "unseen hand" theories.
1) Boeing transfers its entire R&D and manufacturing to China. 20,000 highly skilled U.S. jobs lost. No more airliners are manufactured in the U.S. How could this event possibly directly result in over 20,000 new highly-skilled jobs being created, which you claim "without question" would result?
2) HP and Intel relocate their R&D and manufacturing to India. Microprocessors are no longer designed and manufactured in the U.S. 50,000+ jobs lost. Since most gross profit is consumed by operating costs, the bulk of the assets from the continued operation would be a trade deficit with India. How would such a loss result in more jobs in the long run? Do you believe that HP/Intel's competition would hire more U.S. workers as a result? Or would they be forced to follow suit and relocate overseas to remain competitive?
3) HR Block terminates their U.S. staff and has tax returns prepared in India. How would this result in an increase in skilled jobs back in the U.S.?
(I will fwd your response to the parties I've bcc'd)
Sincerely,Mr. Kim Berry Sacramento, CA
Outsourcing: training your replacement
Economists say eventually more jobs to be created for U.S. workers
http://www.msnbc.msn.com/id/4459380/ <--- quoted in this article