Outsourcing isn’t necessarily bad, when it’s done for appropriate reasons—that is to say, for sound business purposes. Outsourcing lets a company lower its own costs, so that it can prosper. That prosperity both facilitates customers’ ability to get their needed products at lower cost and it facilitates the company’s ability to grow—and so to hire more labor. This is true whether the outsourcing is to another company that uses American labor or whether the outsourcing is to an overseas company. A lot of the difference between those two types of outsourcing depends on labor costs and on government regulatory and taxing costs in those two areas.
Moreover, potsful of American businesses have global reach and need facilities in other countries: sales staffs, managers, production, and so on. This is business in the 21st (and 20th) centuries. Likewise, potsful of European, Asian, South American companies do business in the US, with salesmen, managers, production, and so on here; many of their employees are Americans. Are those companies “outsourcing?” Should they take their marbles and go home?
But what happens when it’s Federal dollars—your and my money collectively—and not private enterprise’s that are being spent, and that are claimed to be getting spent on jobs promptly available for Americans? As Governor John Sununu pointed out in a recent interview with Andrea Mitchell,
When you’ve sent $500 million to Fisker and it goes to Finland immediately. When you send the solar money and it goes to Mexico. When you send the turbine money and it goes to Denmark. And we can go on all day. There is $29 billion worth of purchases that came out of this administration, outsourced jobs to foreign countries. Mitt Romney outsourced zero. Obama outsourced 29 [billion dollars].
Here are a couple of examples, albeit from a Republican-sponsored Web site, among other sources:
The People’s Republic of China:
North Carolina-based LED maker Cree Inc got $39 million in stimulus money in January 2010 and opened its first plant in the PRC. Over half of the company’s employees are in the PRC and Cree’s CEO Says the company’s strategy is “Cree Chip, China Heart.
Sempra got a $337 million loan guarantee for an Arizona solar plant, putting American taxpayers on the hook for the loan. However, the solar panels will be supplied by SunTech, a Chinese solar panel manufacturer. While it’s true that SunTech has built a solar panel plant in Arizona, it will supply, at its peak, 10% of the panels for the Sempra project. The other 90% will come from factories in the PRC.
According to a 2010 report from American University, Eurus Energy America, a subsidiary of the Japanese company Eurus Energy, got $91 million in stimulus monies to build a wind farm in Texas, but the wind farm was built with 180 wind turbines built by the Japanese company Mitsubishi.
There are lots of others in those $29 billion.