Wednesday, December 14, 2005
The Perils of Outsourcing
So your doctor, car mechanic, gardener, barrista--these are people who need to be "close" to you--but everyone else is vulnerable. Even me--in theory, an editor can be anywhere in the world as long as you have a good computer and internet connection.
There are, of course, consequences. The first, as Harry pointed out, is that in the United States unions are increasingly focusing their efforts on those jobs and sectors that cannot be outsourced--health care, the universities, government. Interesting to speculate on the future of the labor movement as a result.
The second is that the United States, as Greenberg noted, cannot indefinitely continue its trade imbalance. The United States needs to reconcentrate its entrepreneurial energies and human capital on developing "the next generation" of goods and services. A point also raised by former Energy Secretary James Schlesinger--that the country that can break energy dependence on petroleum will have an immense technological advantage over other states.
Perhaps it is time for the U.S. to reconsider its stand on industrial policy? (See also our previous discussion on Challenging Orthodoxies).
Energy independence is a national security imperative. A government-led effort can produce the spinoffs that will create new U.S.-based industries and give us a new comparative advantage.
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