This page was last updated on June 8, 2004.

Veon renews call for measures to stop outsourcing; State Rep. Mike Veon; June 3, 2004.

It is always sad when someone loses his job.  That said, it is the nature of change and progress that there will be a constant loss of some jobs and gains in others.  This has always occurred, but it happens much more quickly as technology advances.  For example, it took hundreds or thousands of years to kill the buggy whip business, but only several decades for most telephone operators to lose their jobs.  In another example, remember when a secretary or someone in the typing pool typed your memos?  In this case, the typist job was "outsourced" to you.  We need to prepare ourselves for this new fact of life, not fight it.

In summary, Mr. Veon, along with Rep. Frank LaGrotta and other Democrats and Republicans (in name only) want to outlaw outsourcing via legislation similar to House Bill 2639.  Wrapped in feel-good words, this is no more than trade protectionism.

What is outsourcing?  Initially outsourcing referred to a business taking an in-house function and contracting with a vendor to provide the service.  For example, a company may decide it is more effective to have a vendor provide janitorial services than it is to employ a janitorial department.  Today, outsourcing also refers to sending jobs overseas that were formerly held in the United States.  Though rarely mentioned by persons who tie their star to the outsourcing issue, the opposite of outsourcing is insourcing.  Just a few examples of insourcing are BMW, Honda, Mercedes-Benz, Michelin, Sony, Toyota, et cetera.

The idea of insourcing/outsourcing is simple; use the person who can most effectively perform a service or make a product.  As a result, it should be no surprise that both insourcing and outsourcing have existed since probably the beginning of civilization.

The whole idea of outlawing the free movement of jobs into and out of the United States is ridiculous.  It is protectionism.  The concept of free trade is one of the engines of the U.S. economy.

Legislators who support laws to outlaw outsourcing are hypocrites unless they also oppose insourcing.  Opposing insourcing wouldn't make these panderers right, but at least they would be consistent.  Politicians who oppose outsourcing also tend to support something they call fair trade.  But what is fair about opposing outsourcing while supporting insourcing?  When I ask politicians this question I don't get an answer.

Politicians who favor government laws or sanctions against outsourcing are economically ignorant and/or are simply panderers.

© 2004 Robert W. Cox, all rights reserved.